Tinubu says it’s okay for Sanwo-Olu to stop his pension, entitlements

Former Governor of Lagos State, Bola Tinubu, has applauded Governor Babajide Sanwo-Olu for a recent pronouncement on moves to abolish an era of humongous entitlements and pensions due to former governors and deputies.
During his N1.155 trillion 2021 budget presentation to the legislature on November 10, 2020, Sanwo-Olu said he intends to repeal the Public Office Holder (Payment of Pension) Law No 11 Official Gazette of Lagos State, 2007; in a bid to cut down the cost of governance in the nation’s commercial capital.

The law provides for the acquisition of houses for ex-Lagos governors and deputies in Abuja and Lagos, the purchase of six new cars every three years for them, 100 percent of the basic salary of the serving governor (N7.7m per annum) as their entitlement, furniture allowance, among other jumbo, ridiculous provisions.

“In the light of keeping the costs of governance low, we will be sending a draft executive bill to the House of Assembly imminently for the repeal of the Payment of Pension Law 2007(Public Office Holder), which provides for payment of pension and other entitlements to former Governors and their Deputies,” Sanwo-Olu declared to applause from the hall.

“It is our firm belief that with dwindling revenues and inflationary growth rates, we need to come up with innovative ways of keeping the cost of governance at a minimum, while engendering a spirit of selflessness in public service,” he added.

'Audacious and enterprising'
Tinubu, who governed Lagos from 1999 to 2007 and on whose watch the pension law rolled into effect, has commended Sanwo-Olu for the audacity to stop the pensions and entitlements, seeing as they have become a drain on the state’s coffers.

“Congratulations to Governor Sanwo-Olu over the Year 2021 budget which he appropriately christened 'Budget of Rekindled Hope. This audacious and enterprising budget will empower our people and begin to rebuild Lagos State,” Tinubu said.

Guardian Nigera
He added that: “In particular, I would also like to commend the governor for the plan to commence the repeal of the Pension Law giving pension packages to former governors and their deputies.

“This is a bold and courageous move by Mr. Governor and I wholeheartedly support him. I encourage all APC loyalists to do the same.”

Budget breakdown
The 2021 Lagos budget will be funded from a projected Internally-Generated Revenue (IGR) of N962 billion.

The N192.495 billion deficit will be financed through bond issuance, internal and external loans.

About N704 billion, representing 61 per cent of the total budget, is earmarked for capital expenditure in the proposed 2021 spending.

An estimate of N451.75 billion, representing 39 per cent, will go to recurrent expenditure, which includes personnel cost and other staff-related expenses, the governor said during his speech.