lagos state government

LAGOS STATE GOVERNMENT Ministry of Economic Planning and Budget

2013-2015 MEDIUM-TERM SECTOR STRATEGY (MTSS)

FEBRUARY 2012

Contents Abbreviation and Acronyms

Preface Section One: Executive and Financial Summary .................................................................... 6

1.1 Budget Reforms: the Medium Term Expenditure Framework ................................... 6

1.2 Linking Government Policy and the Annual Budget ................................................... 6

1.3 Key Steps in Developing the Medium Term Sector Strategy ...................................... 7

1.4 Key Stakeholders in the Medium Term Sector Strategy ............................................. 7

1.5 Summary of the Sector’s Programmes and Related Expenditures ............................. 8

Section Two: The Sector Policy Environment and Medium Term Goals and Programmes... 9

2.1 Introduction................................................................................................................. 9

2.2 Overview of the Sector’s Institutional Structure ........................................................ 9

2.3 Summary of the Global, Regional National State and Sector Level Policy Environments ....................................................................................................................... 11

2.3.1 Global High level policies ........................................................................................ 12

2.3.2 Regional High level policies ................................................................................ 12

2.3.3 National High level policies ..................................................................................... 13

2.3.4 State and Sector High level policies ........................................................................ 13

2.4 Summary of Key Developments in the Sector .......................................................... 14

2.5 Statement of the Sector’s Mission, Vision and Core Values ..................................... 15

2.6 Summary of the Current Strategic Directions and Developmental Plans in the Sector 16

2.8 The Sector’s Goals and Programmes for the MTSS Period ....................................... 17

Section Three: Review of On-going/Existing Budget Commitments .................................. 20

3.1 Summary of the Review ............................................................................................ 20

3.2 Overview of 2010 Budget Implementation............................................................... 20

3.2.1 Summary of the Sector’s experience in implementing the 2010 budget ............... 20

3.2.2 A description of the progress made in achieving the Sector’s goals ................. 20

3.2.3 An outline of the performance of some of the larger development projects ... 21

3.3 Overview of the 2011 Budget Implementation ........................................................ 21

3.3.1 Summary of the challenges, lessons learned and constraints faced in 2011 budget implementation ................................................................................................... 21

3.3.2 Summary of key budget data (recurrent and capital) for 2010 and 2011 ......... 21

3.4 Summary of On-going/Existing Budget Commitments .................................................. 22

3.5 Scoring of the Existing Budget Commitments ............................................................... 22

3.6 Existing Budget Commitments Scorecard ................................................................. 22

3.7 Summary of Cancelled/Shutdown Projects .............................................................. 23

Section Four: 2013-2015 Medium Term Sector Recurrent and Capital Expenditures ......... 24

4.1 Statement of 2011 Indicative Ceiling ........................................................................ 24

4.2 Summary of Recurrent (personnel and overheads) Expenditures Included in the Indicative Ceiling .................................................................................................................. 25

4.3 Summary of On-going/Existing Projects Included in the Indicative Ceiling .............. 25

4.4 Summary of New Projects Included in the Indicative Ceiling ................................... 25

Section Five: Conclusion ...................................................................................................... 26

5.1 Summary of the Sector’s Aims over the Next Three Years ....................................... 26

5.2 How the Sector Plans to Achieve its Aims ................................................................. 26

5.3 Summary of Expenditures not Included in the Indicative Expenditure Ceiling: ....... 26

5.4 Monitoring and Evaluating the Sector Strategy ........................................................ 27

5.4.1 Outcome and outcome deliverables for the programmes ..................................... 27

5.4.2 Performance Indicators/Measures for outputs and outcomes .............................. 30

Abbreviations and acronyms

COFOG Classification of functions of Government

CGS Conditional Grants Scheme

GDP Gross Domestic Product

GPS General Public Service

KPI Key Performance Indicator

LASEEDS Lagos State Economic Empowerment & Developments

LASG Lagos State Government

LIRS Lagos Internal Revenue Service

MDAs Ministry, Department Agencies

MDGs Millennium Development Goals

MEPB Ministry of Economic Planning & Budget

MTEF Medium Term Expenditure Framework

MTBF Medium Term Budget Framework

MTFF Medium Term Fiscal Framework

MTSS Medium Term Sector Strategy

NEPAD New Partnership for African Development

ODA Official Development Assistance

OSSAP Office of the Senior Special Assistant to the President

SDP State Development Plan

SPAC Social Policy, Advocacy & Communication

SPARC State Partnership for Accountability Responsiveness & Capability

TPA Ten Point Agenda

UNDAF United Nations Development Assisted Fund

Preface The Lagos State Government adopted a more strategic approach to policy, planning and budgeting through the introduction of a Medium Term Expenditure Framework (MTEF) process in 2008. The Ministry of Economic Planning & Budget (MEPB) as the manager of the state resources through strategic policy planning and fiscal allocation had continue to proffer proficient means of quality service delivery

The State through MEPB is currently implementing sector wide reformed strategy known as Medium–Term Sector Strategy (MTSS). This is medium term strategic plans and operational documents relating the sector goals and programmes that will improve governance in line with the overall policy thrust of the state.

With these strategic and operational documents on ground there is need to develop a process that will assess and report on sector performance annually for evidence‐ based and informed decisions on resource allocation during the state Budget preparations. Lagos State Government had as a result, developed a process involving all Sector MDAs and other relevant stakeholders under the coordination of the Monitoring and Evaluation Department of the Ministry of Economic Planning & Budget for carrying out this annual performance review as an integral part of its Fiscal reform agenda.

Further to this delivery is the Budget Profiling Exercise targeted at building cash backup for budgeted programmes and projects defined as priority by the MDA’s in their Sector MTSS document as well as the Chart of Account reform in conjunction with the State Treasury Office (STO) of the Ministry of Finance. Remarkable achievement had been made in these directions.

This document, however, is a product of painstaking, stocktaking, analysis and consultations with all stakeholders in the sector. The State is committed to its resolve to institutionalize the process and use it to improve on Policy Planning, Budgeting and Budget implementation to enhance service delivery at all Sector of Government. The objective is to enhance sector performance which will facilitate the achievement of laudable developmental goals and targets of the Lagos State Government.

The Lagos State government is grateful to its development partners, notably the Department for International Development (DFID) under its State Partnership for Accountability, Responsiveness and Capability (SPARC) in Nigeria for their guidance and support in the conceptualization of the process and development of this document.

Accordingly, I commend this publication along with other related budgetary guidelines as a must developed material for the MDAs to ensure a link between government expenditures and State’s goal and programmes if the desired discipline in the budgetary process for sustained growth must be achieved.

Mr. Ben Akabueze Honourable Commissioner, Lagos State Ministry of Economic Planning & Budget, March 2012

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Section One: Executive and Financial Summary

1.1 Budget Reforms: the Medium Term Expenditure Framework

Medium Term Expenditure Framework (MTEF) is a multi-year (3 years) budget structure with

a top-down estimate of aggregate resources available for public spending; a bottom-up

costed sector programs by reconciliation of needs with resource constraints for sectoral

resource allocation thereby ensuring that budget execution reflects agreed plans.

On -going initiatives to reform the Lagos State budget process continue to be premised on

creating a coherent and transparent budget framework focused on channelling resources to

fund the State’s developmental needs in an efficient and transparent manner, without

compromising macroeconomic stability.

This is the framework for linking the annual spending of Ministries, Departments and

Agencies (MDAs) with government’s long and medium term strategies as articulated under

the Ten-Point Agenda (TPA) and the Millennium Development Goals (MDGs) and other high

level policy documents of government. The Medium Term Expenditure Framework that

projects likely availability of resources over a 3-year horizon (which should be documented in

a Fiscal Strategy Paper), and a series of Medium Term Sector Strategies (MTSS) that

identify goals and objectives for the key sectors of government and translates these, within

the confines of Sectoral indicative expenditure ceilings, into affordable fully costed and well

defined set of projects over the same period.

These components (including the sectoral indicative expenditure ceilings) are updated

annually by using the Program Based Budgeting to allow economic and policy changes to be

reflected and to feed monitoring and evaluation results into budget planning in a timely

fashion. The outer years (2 and 3) of the

MTSS form the basis of the annual update. This ensures consistency in planning, and

reduces the potential for projects to be left incomplete or in-operational due to lack of future

funding.

Medium Term Sector Strategy (MTSS) is part of reform process for improving the delivery

and conception of annual budget in the State. It is part of the overall plan of Medium Term

Expenditure Framework which was adopted by the State Government for its budgetary

process.

This is an activity based technique at improving strategic planning and efficiency of public

expenditure. This also aims at aligning the budget proposals of MDAs to their respective

sector policies and goals.

1.2 Linking Government Policy and the Annual Budget

We are keen at ensuring that MTSS process is institutionalized for effective allocation of

scarce resources, reduction of waste through identification of sectoral overlapping functions

and linking outcome with programmes, thereby ensuring that public spending on

programmes meets the needs of the people. The MTSS, a complementary component of the

Medium-Term Expenditure Framework (MTEF), represents a crucial link in the process of

translating the long and medium-term poverty reduction strategies of the State Government

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as articulated in LASEEDS, the TPA and the MDGs, into the spending reality of the Annual

Budget.

1.3 Key Steps in Developing the Medium Term Sector Strategy

In developing the Medium Term Sector Strategy, the Ministry of Economic Planning &

Budget commenced the implementation in 2008, in which 3 pilot Ministries, Departments and

Agencies (MDAs) were selected and assisted to develop and document their Medium-Term

Sector Strategies (MTSS). In 2009, additional seven agencies were also assisted to develop

their MTSS while other 14 MDAs were also driven in delivering their MTSS documents in

2012.

The key steps involved the Constitution of the Core Team Members on MTSS, Training of 28

nos. Sector Planning Team which include representatives of the foregoing stakeholders ,

Conduct of One-week strategy sessions at Lekki Peninsula Resort on the establishment of

the Ministry goals and programmes, Development of broad-based outputs and outcomes,

definition costing and priotization of projects, Coordination of the document by MEPB staff

and was later sent to the consultant for assessment. The MTSS document which was

developed includes:

a) Review of existing High Level Policy documents of Lagos State Government with

focus on the delivery of the GPS sectoral goal in line with the overall state policy

thrust of the State.

b) Clearly articulating medium-term (three years) goals and programmes against the

background of the overall goals of TPA and the attainment of the overall policy thrust

of the State.

c) Identifying and documenting the key initiatives (that is, projects and programmes)

that will be embarked upon to achieve goals and objectives;

d) Costing the identified key initiatives in a clear and transparent manner;

e) Phasing implementation of the identified initiatives over the medium-term;

f) Defining the expected outcomes of the identified initiatives in clear measurable terms

(KPIs)

g) Linking expected outcomes to their objectives and goals.

1.4 Key Stakeholders in the Medium Term Sector Strategy

The Ministry of Economic Planning & Budget is classified as General Public Service (GPS)

sector under the Classification of Functions of Government (COFOG).

The key stakeholders include the initial all MDAs being driven by MEPB, the development

partners. Medium Term Sector Strategy as set out in this document for the MEPB was

formulated by the Ministry Planning Team (comprising the Honourable Commissioner,

Permanent Secretary, Director of Finance and Administration, Director Economic Planning,

Director Budget, Director Monitoring & Evaluation, Director Development Partnership,

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Director Account with the assistance of the Core Planning Team and officials of the Ministry

of Economic Planning and Budget. MEPB has adopted internationally acceptable standards:

it now uses Program Based tools like MTBF, MTEF and MTSS to prepare the State budget.

1.5 Summary of the Sector’s Programmes and Related Expenditures

Table1: Programmes and expenditure

Programmes Budgeted Expenditure

2013 2014 2015

Provision of Economic Intelligence policy

Reformation of Strategy Planning Process

Review of Policy Brief on Lagos Economic Summit (Ehingbeti)

Gathering prices and local Government Statistics

Carrying out Survey on Data Bank statistics

Formulation and Preparation of State Budget

Participatory / Stakeholders Involvement Process

Projects Monitoring & Evaluation

Ensure Outcome Monitoring &Evaluation

Impact Assessment

Sourcing and facilitation of Development partnership

Co-ordinating the activities of Development Partners

Total Cost

Indicative ceiling 0 0 0

Indicative ceiling – Total Cost 0 0 0

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Section Two: The Sector Policy Environment and Medium Term Goals and Programmes

2.1 Introduction

This chapter is about to review the sector policy environment and the major team goals,

discussions about the overview of the sector’s institutional structure. The Ministry of

Economic Planning and Budget is the Central Planning Agency of the State Government and

it is responsible for the realization of the goals of Government which is translating its policy

thrust into manageable programmes, projects and activities. Over the years, it has managed

the development of planning matters as well as General Financial and Monetary matters in

the areas of Revenue and Expenditure. It has ensured this through robust policies and

annual budgets to fulfil the overarching policy goal of Government which is ‘Poverty

Eradication and Sustainable Economic Growth through Infrastructure Renewal and

Development’.

2.2 Overview of the Sector’s Institutional Structure

The Ministry of Economic Planning and Budget (MEPB) is the government institution

responsible for overall planning and budgeting activities in Lagos State.

Accordingly, the ministry operates five (5) professional/technical departments namely:

Economic Planning dept., Budget Dept., Lagos Bureau of Statics., Monitoring & Evaluation

Dept., Development Partnership dept., two (2) servicing departments: Finance & Admin.

Dept., Account dept., three offices: Honourable Commissioner’s office, Special Adviser’s

office & Permanent Secretary’s office and five support units: Press & Public Relation (PRO),

Information & Communication Technology (ICT), Internal Audit, Planning unit and

Procurement. Each department is headed by a Director.

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Figure 1: Office of the Head of Service/Public Service Office Organogram

Economic Planning

Dept.

MMIINNIISSTTRRYY OOFF EECCOONNOOMMIICC PPLLAANNNNIINNGG && BBUUDDGGEETT

22001133 –– 22001155 MMEEDDIIUUMM--TTEERRMM SSEECCTTOORR SSTTRRAATTEEGGYY ((MMTTSSSS))

FFEEBBRRUUAARRYY 22001122 DDRRAAFFTT RREEPPOORRTT

Honourable Commissioner

Special Adviser on Economic Planning & Budget

HC Permanent

Secretary HC

Budget Dept

HC

Monitoring & Evaluation

Dept. HC Finance &

Administration

Lagos Bureau of Statistics

HC

Accounts Dept

HC

Development Partnership Dept

Planning Unit

HC

Public Relation Officer

HC

Information & Communication Technology HC

Internal Audit

HC

Procurement unit

HC

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2.3 Summary of the Global, Regional National State and Sector Level Policy Environments

The Lagos State Ministry of Economic Planning and Budget (MEPB) as charged in the

Assignment of Ministerial Responsibility Lagos State Government Gazette, No18, Vol.32 of

1st, July, 1999 was amended by MEPB Corporate Planning Core Group at the meeting held

on December 3, 2010 as follow: (Major basis for the amendment was that there have been

structural changes in governance over the past 12 years since the mandates under review

were set and in the process, some of the responsibilities originally charged to MEPB at its

creation, have officially been transferred to other newly created government agencies or

departments such as the Lagos Internal Revenue Service – LIRS.

These responsibilities include the following:

a) Coordination of Economic Planning Matters including:

Economic Planning;

Economic Intelligence;

Preparation and review of Development Plans;

Periodic reports on Development Plan Implementation;

Monitoring of Development Plans.

b) Advising the State from time to time on General Financial and Monetary matters both

locally and internationally.

c) Proposing to Government Revenue objectives through research.

d) Advising on Plans and programmes needed to achieve the designed objectives by all

Revenue Collecting Agencies.

e) Collaboration with relevant MDAs on issues relating to socio-economic development,

fiscal and other related matters.

f) Preparation of Annual Budget of the State Government and processing of Annual

Budget of Parastatals Organizations.

g) Advisory services on Local Government Budget.

h) Preparation of supplementary estimates.

i) Budgetary Controls.

j) Budgetary Instructions.

k) Reviewing and commenting on feasibility studies, plans and programmes of

Ministries, Offices and Bureaus.

l) Responsibilities for matters relating to the following Boards and Committee

State Consultancy Board;

Public Accounts Committee;

m) Research; monitoring and Evaluation of government programmes and projects.

n) Monitoring compliance with the requirement of:

Submission of Annual Accounts by Parastatal and Tertiary Institutions;

Audit of Public Accounts; and

Annual Budget.

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Periodic review of financial status of Parastatal and Tertiary Institutions

o) Collection, collation, analysis, production and dissemination of statistical data for

planning purposes.

p) Liaison with the National Bureau of Statistics and other statistical agencies.

q) Pre-payment inspection.

r) Technical assistance and coordination on development partnership matters.

s) Arranging and following up Governor’s coordinating meetings with Ministries, Office,

Bureaux and Parastatals on project implementation.

t) Liaison with Ministry of Finance on budgetary and financial matters.

u) Offering advice to Government on implementation of project and programmes.

v) Policy matters on Tenders procedure.

Relevant elements of the global, regional, national and sector level policy environments

include:

2.3.1 Global High level policies

MDGs Planning & Budgeting Sector Targets and Achievements

The MDGs Planning & Budgeting sector and related targets were set relative to the

standards prevailing in 1990. The goal is Develop a Global Partnership for Development.

The targets expected to be achieved by 2015 as it relates to the sector is:

Develop further an open rule based, predictable non discriminatory trading and financial

system which include the commitment to good governance, development and poverty

reduction.

Nigeria's Millennium Development Goals (MDGs) - Conditional Grants Scheme (CGS)

has been designed to address the MDGs at the local level by providing financial and

technical support to scale-up the MDGs related activities of state and local governments.

The State and Local governments are responsible for delivery of basic services to

communities. They are better placed to do this than the federal governments, as they

are more familiar with the local conditions, demands and constraints. The implementation of

the CGS projects in the State is being undertaking by the sector (Ministry of

Economic Planning & Budget)as directed by OSSAP-MDGs.

2.3.2 Regional High level policies

NEPAD - Establishing a New Relationship with Industrialised Countries and Multilateral

Organisations

The Economic and Corporate Governance Initiative State capacity-building is a critical

aspect of creating conditions for development. The State has a major role to play in

promoting economic growth and development, and in implementing poverty reduction

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programmes. However, the reality is that many governments lack the capacity to fulfil this

role. As a consequence, many countries lack the necessary policy and regulatory

frameworks for private sector-led growth. They also lack the capacity to implement

programmes, even when funding is available. Restoring and maintaining macroeconomic

stability, especially by developing appropriate standards and targets for fiscal and monetary

policies, and introducing appropriate institutional frameworks to achieve these standards;

With a goal to achieve and sustain an average gross domestic product (GDP) growth rate of

over 7 per cent per annum for the next 15 years. A critical dimension of Africans taking

responsibility for the continent’s destiny is the need to negotiate a new relationship with their

development partners. The manner in which development assistance is delivered in it

creates serious problems for developing countries.

The need to negotiate with, and account separately to, donors supporting the same sector or

programme is both cumbersome and inefficient. Also, the tying of development assistance

generates further inefficiencies. The appeal is for a new relationship that takes the country

programmes as a point of departure. The new relationship should set out mutually agreed

performance targets and standards for both donor and recipient.

2.3.3 National High level policies

VISION 20:2020 –

The Plan Thrust in line with the three key pillars of the Vision, and the theme, the Plan,

seeks to engender accelerated pro-poor growth, achieve an average GDP growth rate,, raise

the GDP per capita, generate jobs to absorb the teeming unemployed and create new

opportunities, improve the nation’s global competitiveness and raise the public confidence

on the nation’s governance and political system, among others, in order to attain the

Millennium Development Goals by 2015, and move the nation towards achieving its Vision

by 2020. Lagos State Government in tune with the Federal Government has created a

vision20:2020 that “by 2020 Lagos State will truly be the centre of excellence and Africa’s

Economic Hub” Lagos Metropolitan area will become one of the top 10 model-mega cities in

the world in terms of urban living indices.

2.3.4 State and Sector High level policies

a) Ten Points Agenda – Is a relevant document of MEPB especially as it relates to

Revenue Enhancement and Development of Data base through diversification of

revenue sources; widening tax net; effective revenue collection mechanism; and

database development

b) Other relevant policy documents being used by Ministry of Economic Planning &

Budget are:

Budget Manual

MTSS Guidelines/Sector plan

Lagos Economic Summit - Ehingbeti decisions

Approved Budget.

State Development Plan (SDP).

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2.4 Summary of Key Developments in the Sector

The major developments that have taken place in Budget & Planning sector are as follows:

a. Budget reform: The sector has taken steps to improve on timely Preparation /

Presentation, Implementation, Monitoring and Evaluation of Budgets. In the process,

it has undergone both structural and process reforms, including the setting up of the

Economic Intelligence Unit within the Economic Planning function; upgrading of the

old Central Office of Statistics to Lagos Bureau of Statistics, renaming and

redefinition of Technical Aid Department to Development Partnership Department as

well as the Central Projects Coordinating Department to Monitoring and Evaluation

Department.

b. Creation of Planning unit in MDAs. The Sector had undergone operational

restructuring by creating Planning Units in Ministries, Departments and Agencies as

well as defining the role of the Unit through executive order. Accordingly, the Sector

had developed the capacity of the Officers in the Planning Units to drive the delivery

of the MTSS document in the various sectors represented by the MDAs. The

development of the Medium–Term Sector Strategy (MTSS) document is the

highpoint of this effort.

c. Review and harmonization of all existing high-level policy documents and budgets of

Lagos State Government (LASG) into a consolidated 15-year State Development

Plan. The need for this is to have a document to distil from such documents as Ten

Point Agenda (TPA), Vision 20:2020 as well as MDGs and related goals. This is

achieved through strengthening capacity for developing policies and strategies

including monitoring and evaluation; Improving the management of public financial

resources; and Management of the public service. The State Development plan is

important to ensure that functional structures for 'managing' the quality, coordination,

implementation and delivery of outputs and feasibility of plans are operational.

d. Policy brief on Lagos Economic Summit (Ehingbeti 2010) developed and submitted

to MEPB. This involved the review of past summits which stated the resolutions and

recommendations made as well as those that were implemented and others that are

at various stages of conception and implementation.

e. The Programme-Based Budgeting (PBB) template was piloted with MEPB and 10

MDAs. The PBB provided a platform for MTSS to fit into the programme-based

budget as proposed by the sector. A workshop was organized for MDAs to expose

participants to the rudiments of preparing a Programme- Based Budget (PBB); this

will inform the Lagos State Government on what has been expended on each

programme.

f. Development of Medium Term Sector Strategy for selected sectors in the state and

conducting strategy session with Core team members as well as training of the state

planning teams (SPT) by utilizing the approved Lagos State MTSS guidelines to

guide the selected sectors through its development in order to achieve MTSS that

are consistent with the high level policy. Refresher course on MTSS and the review

of MTSS document for the first ten (10) pilot sectors (MDAs) in Lagos State.

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g. Completion of a user-friendly generic Budget manual. The Budget manual which was

developed by the sector provides a set of guidelines on public financial management,

including specifically the procedures relating to the annual budget process for the

Lagos State Government.

h. Support the development of State statistical master plan to reverse the decline in the

quantity and quality of official in the State and to promote evidence based policy

design, planning and monitoring the state development programmes and initiatives.

2.5 Statement of the Sector’s Mission, Vision and Core Values

MEPB MISSION STATEMENT

Ensuring continuous and dynamic socio-economic policies through prudent and equitable

resource management in Lagos State.

MEPB VISION STATEMENT

To be the primary Agency of Government that facilitates efficient and effective mobilization,

planning, allocation and utilization of resources for socio-economic transformation of Lagos

State.

CORE VALUES

Prudence

Professionalism

Integrity

Dynamism

Teamwork

Operational definition of core values of Ministry of Economic Planning & Budget

Value Definition Example of Behaviour

Strategy Implication

Prudence Carefulness and good sense of reasoning exhibited when making a financial and or resource allocation decision.

Carefulness in financial management. Taking caution in resource allocation.

The sector will reward industrious innovation and creativity and introduce sanctions

Professionalism Exhibiting expertise quality in the discharge of duties by staff.

Responsibilities that require special training

Promote membership of relevant professional bodies by staff to acquire and sharpen requisite skills

Integrity Steadfastness in adhering to ethical principles

Consistency in dealing with stakeholders without compromise.

Provision of regular enlightenment/awareness programme to staff.

Dynamism Continuous reform process.

Full of initiatives and exciting ideas.

Recognition of vigour in the conduct of staff

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Restructuring in the Ministry for optimal service delivery.

Teamwork Loyalty that exist among the members of staff to achieve organizational goals.

Cooperation, interdependence

Timely delivery of output Exhibition of synergy for improved productivity.

2.6 Summary of the Current Strategic Directions and Developmental Plans in the Sector

The strategic direction in which Ministry of Economic Planning & Budget is moving can be

described as follows:

a. Amazing transformation of the State. The sector has witnessed the deployment of the

budget as a major tool for planning and transformation. Emphasis was deliberately

shifted from recurrent to capital expenditure to support the Administration's policy

thrust of massive infrastructural development. Budgeting in the past four years had

been used to faithfully implement the Ten Point Agenda originally.

b. Good governance which is based on recognition of the interests of all stakeholders

and inclusion of their interests where possible. The strategy to achieved this are

through:

Open Budget Initiative which illustrates how governments can increase their access to information.

Gender budget analysis - comparing the impact of government spending on men and women, making sure that the government includes women in their budgeting process

Training communities in "budget literacy" - community organizations will train civil society about the internal workings of the budget and thus increase their ability to critique the governing

Community score cards this is an innovative way of gathering community input on the budget process bodies.

c. Delivery of dividend of democracy i.e., Freedom of Information Laws that allows the

government to share information publicly this is the use of the Citizen’s Guide

publication on Budget available to the public.

http://www.openbudgetindex.org/

http://www.newtactics.org/en/blog/new-tactics/using-budgets-monitoring#comment-4006

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2.8 The Sector’s Goals and Programmes for the MTSS Period

Table 3: Goals, programmes and outcome deliverables

S/N Goal Programme Outcome

Deliverable

Key Performance Indicators of the outcome

Current Outcome Value

in 2012

Outcome Target Values

2013 2014 2015

1 Maintenance of strong Economic Planning Mechanism.

Policy research analysis

Evidenced based Inputs for policy direction Production of Policy briefs and other Publications

Proportion of evidenced- based inputs for Planning

Currently about 40% of policy planning in Lagos State is factual, verifiable Statistical data

50% evidence based and verifiable Statistical data



Reformation of Planning Process

Documentation of Medium Term Planning Tools

Proportion of MDAs applying MTEF

Application of Strategic tools in 28 MDAs across the State Civil Service

100% Application of MTEF across the State Civil Service

Completion of application of MTSS across the State

Review of Medium Term documents across the State

Participatory Policy planning

Provides focus and direction for Government Agenda

Review of State Govt. High Level Policy documents

First draft of State Dev. Plan

Validation of the State Dev. Plan

First Review of the State Dev. Plan

Second Review of the State Dev. Plan

2 Promotion of Public-Private Participation

Review of Policy Brief on Lagos Economic Summit (Ehingbeti)

Effective Economic Policy direction

Proportion of investment from PPP per year

Conveyance of Stakeholder forum (Ehingbeti Summit)

Integration and Implementation of Summit Resolutions

Conveyance of 2014 Stakeholder forum (Economic Summit)


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Deliverable



in 2012


3 Generation and utilization of reliable data for planning

Gathering prices and local Government Statistics

Data production i.e Price Statistics and Local Government Statistics

Proportion of policy /programme decisions that are based on statistical information

Monthly publication of data

30% increase access to Data Users

50% access to Data Users


Carrying out Survey on Data Bank statistics

Production of Digest of statistics & statistical Hotline and data on Household Survey,(GDP Employment Survey.

Proportion of identified emerging issues that data generation responded to.

Annual Publication of data




4 Ensure Effective & Efficient Budget Management

Formulation and Preparation of State Budget

Efficient resource utilization & management

Benchmarking/Annual budget performance in percentage across MDAs

75% of MDAs Compliance




Participatory / Stakeholders Involvement Process

Ensure annual budgetary process compliance

MDAs compliance with the given envelope





5 Develop a Policy Strategy in Monitoring & Evaluation

Projects Monitoring & Evaluation and Impact Assessment

Effective value delivery of government programmes on the populace

Timely Performance Management Report (PMR) level of sector programme performance

Production of Programme KPIs for all MDAs

Assessment of three (3) government Programmes from three (3) different Sectors

Assessment of additional three (3) government Programmes from three (3) different Sectors

Assessment of additional four (4) government Programmes from three(3) different Sectors

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Deliverable



in 2012


6 Facilitation of Development Partnership

Sourcing and facilitation of Development partnership

To maximise developmental opportunities

Significant percentage contribution from ODA to annual budget.

50% increase on the number of development Partners engaged





To optimise developmental opportunities

Number of programmes facilitated/Implemented within the year

Increase in number of Programmes facilitated

20% Increase in number of Programmes facilitated



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Section Three: Review of On-going/Existing Budget Commitments

3.1 Summary of the Review

A review of year 2010 and 2011 budget implementations were carried out to identify key

success stories, major upsets and learning points for improving subsequent budget

implementation while capturing and analyzing key historical and current budget data.

The review was also aimed at determining projects that should be continued and the ones to

be discontinued. The projects to be continued are those that will help to achieve the goals

and programmes of the sector. Otherwise, continuing with them will be a misplacement of

funds. The review was done jointly with the Sector Planning Team members.

3.2 Overview of 2010 Budget Implementation

A review of the 2010 and 2011 budget implementation were carried out with a view to

identifying the key success stories, major upsets, and challenges.

3.2.1 Summary of the Sector’s experience in implementing the 2010 budget

The following are common problems with budget execution at the State level:

a. circumvention of budget and expenditure controls

b. difficulty in reconciling bank statements with budget accounts and thus in obtaining

reliable and timely data on cash expenditures

c. the accumulation of payment arrears – deliveries from supplies which have not been

paid etc

d. the lack of fund and account consolidation

e. difficulty in managing and accounting for aid flows.

3.2.2 A description of the progress made in achieving the Sector’s goals

To improve the State level budget process, there needs to be an emphasis on establishing

some of the key basic fundamentals required of a budget system, such as:

a. seeking relatively modest improvements in the basic budget preparation process

b. re-establishing basic cash and expenditure control within ministerial functions

through improvement and streamlining of existing manual processes, developing

rules and procedures and associated capacity building

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c. seeking to enhance levels of political involvement and guidance in the budget

process, improving overall levels of transparency and participation in the LASEEDS

review and implementation and greater definition and clarity of affordable policies

d. technical and procedural improvements to internal and external audit processes

through technical design and capacity building

e. further ongoing sensitization at senior levels in line with improvements planned and

underway, in order to create demand for further sustained reform and to cement

achievements already made.

3.2.3 An outline of the performance of some of the larger development projects

The sector does not have any larger development project as it is classified under General

Public service. The sector only implements projects only as directed.

3.3 Overview of the 2011 Budget Implementation

A review of the Y2011 budget implementation was carried out with a view to identifying the

key success stories, major upsets and learning points for the future

3.3.1 Summary of the challenges, lessons learned and constraints faced in 2011 budget implementation

a. State-wide transfer of officials leading to loss of already trained officers.

b. This was however mitigated by creation of Planning units in various MDAs with the

prerogative of transfer reserve to MEPB.

c. Inadequate use of published data by MDAs and other Stakeholders.

d. Inadequate response to data request from MDAs and other Stakeholders.

e. Inadequate provision of proper documents / relevant information on programs /

projects by MDAs for monitoring and evaluation.

f. Non-availability of operation of some Development Partners for proper

documentation by the State.

3.3.2 Summary of key budget data (recurrent and capital) for 2010 and 2011

The historical, current and future budget data were captured for the Lands Budget

using the standard formats. The data captured for capital is set out in the table below:

Table 3.1

Item Approved Budget

(N) in 2011

Amount Released

(N) in 2011

Actual Expenditure

(N) in 2011

Personnel 164,151,654.66 177,856,301.00 177,856,301.00

Overhead 762,656,160.00 291,276,184.11 291,276,184.11

Capital 140,000,000.00 79,071,002.40 79,071,002.40

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Total 1,066,807,814.66 548,203,487.51 548,203,487.51

3.4 Summary of On-going/Existing Budget Commitments

A description of the projects that are performing well and those that are performing poorly

and an explanation of why they are performing poorly.

The Sector Planning Team (SPT) reviewed the on-going projects and scored using the

criteria 1, 2, 3 and 4 scoring criteria provided the MEPB. There is only one capital

expenditures in the sector; the project is highly scored because it is:-

a. One of the MDGs goals.

b. Involved in improvement of health related issue.

The scoring criterion is applied to the on-going project. However, the project is performing

well.

3.5 Scoring of the Existing Budget Commitments

The scoring exercise began with the development of an Excel based scoring

Spreadsheet. The spreadsheet is capable of calculating the overall average score

for each of the four criteria and at the same time rank the project. Unfortunately, only one

project was scored.

3.6 Existing Budget Commitments Scorecard

Table 3.2: Summary of the review of on-going/existing projects scorecard (ranked by average score)

Project Name Budgeted

Expenditure in 2011 (N)

Criterion 1

Criterion 2

Criterion 3

Criterion 4

Average (1 – 4)

Final Criterio

n 5

Counterpart Funding - Construction of 2 nos. Maternal & Childcare centres at Badagry & Epe

3,465,000,000

4 4 3 3 3.5 4

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Table 3.3: Summary of ongoing/existing projects’ expenditures and output measures

Programme

Number Project Name

Budgeted Expenditure (N) Output

Output KPI

Output Value in 2012

Output Target

2013 2014 2015 201

3 2014 2015

1.

Counterpart Funding - Construction of 2 nos. Maternal & Childcare centres at Badagry & Epe

3,638,250,000.00

3,820,162,500.00

4,011,170,625.00

Completed and functional MCC at Epe and Badagry.

Project will be 100% completed

3,465,000,000.00

Total N/A N/A N/A N/A N/A N/A

3.7 Summary of Cancelled/Shutdown Projects No project was shut down

Table 4: Summary of cancelled/shut down projects

Project Name Rationale for cancellation/shut down

No project No project was shut down

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Section Four: 2013-2015 Medium Term Sector Recurrent and Capital Expenditures

4.1 Statement of 2011 Indicative Ceiling

Table 5: Statement of 2011 Indicative Ceiling

BUDGET ESTIMATES

GENERAL OVERHEAD COST 1,036,800,000.00

Y2012 ECONOMIC RETREAT 150,000,000.00

PROVISION FOR SUBVENTION 893,364,720.00

RISK RETENTION FUND 100,000,000.00

COUNTERPART FUND 3,465,000,000.00

GRANT 3,468,000,000.00

SPECIAL EXPENDITURE 6,000,000,000.00

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4.2 Summary of Recurrent (personnel and overheads) Expenditures Included in the Indicative Ceiling

Table 6: 2013 – 2015 Staff strength, personnel and overhead cost

MDA

Projected Staff Strength

Projected Personnel Cost (N’000) Projected Overhead Cost (N’000)

2013 2014 2015 2013 2014 2015 2013 2014 2015

Min. of Economic Planning & Budget

259 272 286 286,618,801.55 300,949,741.62 315,997,228.70 1,025,521,347.60 1,175,287,758.31 1,234,052,146.22

4.3 Summary of On-going/Existing Projects Included in the Indicative Ceiling

Table 7: On-going/Existing projects expenditure

Goal: Programme No

Project name Budgeted expenditure Output Output KPI

Output target Final Ranking

2012 2013 2014 2012 2013 2014 2015

Goal 6: Facilitating Development Partnership

Special project / Counterpart Funding projects

3,465,000,000.00

Completed and functional MCC at Epe and Badagry.

Project will be 100% completed 3,465,000,000.00

4.4 Summary of New Projects Included in the Indicative Ceiling

No new project was being proposed because the ministry is a public service sector except it is otherwise directed to implement a project.

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Section Five: Conclusion

5.1 Summary of the Sector’s Aims over the Next Three Years

Medium Term Sector Strategy (MTSS) is part of reform process for improving the delivery

and conception of annual budget in the State. It is part of the overall plan of Medium Term

Expenditure Framework which was adopted by the State Government for its budgetary

process. The sector‘s aims over the next three years includes:

a. Revenue Stakeholders Meeting chaired by Governor for sustained Revenue Drive;

b. Transparency and Accountability;

c. Efficient Allocation of Resources across Sectors;

d. Tighter operating Expenditure Control;

5.2 How the Sector Plans to Achieve its Aims

The sector targeted at improving on these frameworks

a. Statutory Periodic Review of Performance;

b. More Effective Project Monitoring & Evaluation;

c. Sustaining Capital: Recurrent Expenditure Ratio of 58:42

d. Retaining Benchmark Performance at 90%

Table 8: Budgeted Project Expenditure by Goals and Programmes included in the indicative ceiling

MDA Goal: Programme No

Project Name

Existing/ongoing/new (E/O/N)

2011 Proposed Budgeted Expenditure

2011 Approved budgeted expenditure

Estimated Expenditure

Average Score

Final ranking

Source of funding

2013

2014

2015

No project was proposed and approved

5.3 Summary of Expenditures not Included in the Indicative Expenditure Ceiling:

No indicative expenditure ceiling was given. Projects were not fitted into the resource ceiling.

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5.4 Monitoring and Evaluating the Sector Strategy

5.4.1 Outcome and outcome deliverables for the programmes

S/N Programme Outcome Deliverable

Current Outcome Value in 2012


2013 2014 2015

1 Economic Intelligence programme

Evidenced based Input for policy direction ,Production of Policy briefs and other Publications( Lagos Policy Review Publication)

Currently about 40% of policy planning in Lagos State is factual, verifiable Statistical data






Application of Strategic tools in 28 MDAs across the State Civil Service

100% Application of MTEF across the State Civil Service

Completion of application of MTSS across the State

Review of Medium Term documents across the State

Facilitation of participatory Policy planning


First draft of State Dev. Plan

Validation of the State Dev. Plan

First Review of the State Dev. Plan

Second Review of the State Development plan

2 Lagos Economic Summit(Ehingbeti)


Convenance of Stakeholder forum(Ehingbeti Summit)


Convenance of 2014 Stakeholder forum(Ehingbeti Summit)


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3 Price and Local Government Statistics


Monthly publication of data


50% access to Data Users 70% access to Data Users

Survey Research Statistics

Data production i.e Household Survey, Gross Domestic Product(GDP), Employment Survey




Motor Vehicle Statistics

Data production i.e MVA Statistics




Data Bank Statistics Data production i.e Digest of Statistics, Statistical Hotline




4 Formulation and Preparation of State Budget

Efficient resource utilization and management



85% of MDAs Compliance 90% of MDAs Compliance

Participatory/Stakeholders Involvement Process




85% of MDAs Compliance 90% of MDAs Compliance

5 Output Monitoring &Evaluation

Value delivery 70% Prepayment Certification achieved

10% increase in Prepayment Certification Compliance



Outcome Monitoring &Evaluation

Value delivery Introduction of Performance Management Report(PMR) to nine(9) Sectors

Review of Performance Management Report(PMR) to all nine(9) Sectors

Preparation of current year PMR and its review in all nine(9) Sectors

Preparation of yearly PMR, its review and its use for the Y2015 MTSS adjustment in all nine(9) Sectors

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Impact Assessment Present effective of government programmes on the populace

Production of Programme KPIs for all MDAs

Assessment of three(3) government Programmes from three(3) different Sectors

Assessment of additional three(3) government Programmes from three(3) different Sectors

Assessment of additional four(4) government Programmes from three(3) different Sectors

6 Sourcing and facilitation of Development partnership

To maximise developmental opportunities






To optimise developmental opportunities

Increase in number of Programmes facilitated




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5.4.2 Performance Indicators/Measures for outputs and outcomes

S/N Programme Outcome Deliverable

1 Economic Intelligence programme

Evidenced based Input for policy direction, Production of Policy briefs and other Publications(Lagos Policy Review Publication)



Facilitation of participatory Policy planning


2 Lagos Economic Summit(Ehingbeti)


3 Price and Local Government Statistics


Survey Research Statistics Data production i.e Household Survey, Gross Domestic Product(GDP), Employment Survey

Motor Vehicle Statistics Data production i.e MVA Statistics

Data Bank Statistics Data production i.e Digest of Statistics, Statistical Hotline

4 Formulation and Preparation of State Budget

Efficient resource utilization and management

Participatory/Stakeholders Involvement Process


5 Output Monitoring &Evaluation Value delivery

Outcome Monitoring &Evaluation

Value delivery

Impact Assessment Present effective of government programmes on the populace

6 Sourcing and facilitation of Development partnership

To maximize developmental opportunities

Co-coordinating the activities of Development Partners

To optimize developmental opportunities

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