One of the enduring criticisms of the Lagos State Government is the black box nature of its budgeting processes. In 2018, the civic think-tank, BudgIT, described Lagos’ financial statements as “notoriously kept opaque, with scant useful information” in the public domain. This clandestine process is also a popular attack line for opposing politicians who seek to wrest the state away from the grip of the All Progressives Congress (APC) which has, in multiple forms, governed the state since the return of democracy in 1999. If the government cannot be transparent with public funds, why should citizens trust them with votes?
But what exactly is secret about Lagos State’s budget processes? This is not a straightforward answer. Every year, the state government presents the annual budget to the House of Assembly; newspapers report the total amount of the budget, the recurrent and capital expenditure and sectoral breakdown. On the state government’s websites, I was able to find audited statements dating as far back as 2014. These statements are usually more detailed than the newspaper reports and typically run into more than a hundred pages. So, what do the critics mean when they say the state government’s financial transparency is suspect?
To answer this question, I reached out to the good people at BudgIT, who spend inordinate amounts of time and resources combing through public records and have, over the past decade and perhaps more than any other organisation, advanced public transparency at all levels of government in Nigeria. The questions I posed and the answers I received, from a research and data analyst at BudgIT, Oluwaseyi Adenuga, are reproduced below. The responses have been edited for clarity.
Solomon Elusoji: What budget data does Lagos publish? In what format? PDF or Excel sheets?
Oluwaseyi Adenuga: Lagos State publishes its budget data primarily in PDF format. This includes the draft budget outlining planned expenditures and revenues, the approved budget for the fiscal year, audited Reports that provide an overview of the financial statements (though availability can be inconsistent), reports that detail how the budget is being executed (they are often lacking in comprehensiveness) and a document that outlines the legal framework governing budget appropriations.
However, some of these documents are scanned and are sometimes not user-friendly, making it difficult for stakeholders to assess and utilize the information effectively.
Elusoji: What data does it not publish?
Adenuga: Lagos State does not typically publish several key pieces of data, including documentation related to contracts, including terms, amounts, and parties involved, which would provide transparency on public spending; and any additional information that could enhance understanding of budget decisions and outcomes, such as impact assessments or project evaluations.
The absence of this data limits public oversight and accountability regarding the state’s financial practices.
Elusoji: Has there been any significant reforms/progress in recent years regarding transparency?
Adenuga: In recent years, there have been some discussions and initiatives to improve transparency in Lagos State, but significant reforms have been limited.
The state has been able to implement the State Transparency, Accountability, and Sustainability (SFTAS) reforms program. In the Annual Performance Assessment (APA) report for 2020, the state was able to achieve nine DLRs (Disbursement Linked Result) out of 15 DLRs applicable to the 2020 APA.
The state has also made efforts to enhance transparency through digital platforms where citizens can access budget documents and related information. However, the comprehensiveness and user-friendliness of these platforms can vary.
Meanwhile, there have been calls for increased public engagement in budget processes, with some initiatives aimed at involving civil society organizations in monitoring budget implementation.
The introduction of laws aimed at enhancing fiscal responsibility and accountability has been proposed, although the full implementation and impact of these laws remain to be seen. And statements from government officials, including promises for greater budget transparency and regular reporting, have been made, but consistent follow-through is still needed.
Overall, while there are signs of a growing awareness of the importance of transparency, substantial progress in the form of concrete reforms and sustained implementation has yet to be fully realized.
Elusoji: In 2019 on the campaign trail, Governor Sanwo-Olu promised to hold a “quarterly review of our budget performance.” Has this been implemented in any way?
Adenuga: While the Lagos State government has made some efforts to publicly release quarterly budget performance reports, the promised collective review meetings with stakeholders, civil society organizations, and the general public have not been consistently implemented.
These meetings were intended to foster dialogue and accountability regarding budget execution, but the lack of regular engagement means that opportunities for public input and oversight remain limited. Overall, the commitment to transparency and stakeholder involvement in budget reviews has not been fully realised.
Elusoji: What are the implications of this lack of transparency?
Adenuga: The lack of transparency can lead to a significant distrust between the government and the public. It hinders informed public discourse and accountability, which are fundamental to democratic governance. Moreover, it can enable mismanagement of funds and corruption.
The lack of transparency in Lagos State’s budget processes has several implications. One, without clear and accessible information, it becomes difficult for citizens and oversight bodies to hold government officials accountable for financial decisions and spending. Two, a lack of transparency can lead to public skepticism about government intentions and operations, diminishing trust in public institutions. Three, if stakeholders are not involved in budget discussions, it can result in the misallocation of resources that do not meet the community’s needs. Four, citizens may feel disenfranchised and less likely to engage with governmental processes if they perceive a lack of transparency and access to information. Five, a lack of oversight can create opportunities for corruption and mismanagement of public funds, as it becomes easier for unethical practices to go unnoticed. Six, without transparent processes, marginalized communities may not have their voices heard, leading to unequal access to services and resources.
Overall, the absence of transparency undermines democratic governance and can have long-term negative impacts on societal well-being and development.
Elusoji: Why would the state government not want to open its books?
Adenuga: There may be several reasons, including a desire to maintain control over information, potential exposure of mismanagement or corruption, and a lack of commitment to transparency as a governance principle.
Elusoji: What is obtainable in other commercial nerve centers like New York and London?
Adenuga: Budget documents are usually published in easily readable formats in places like New York and London, frequently with internet portals that offer up-to-date information and in-depth analysis. Budget performance reports, audits, and contract information are readily available to the public, encouraging an accountable culture.
New York has Open Book New York. This platform allows users to search millions of state and local government financial records. It provides detailed information on state contracts, payments, local government data, and state spending. Users can easily track how tax dollars are spent and access various financial reports and dashboards, such as the COVID-19 Relief Program Tracker and the Asylum Seeker Spending Report.
The New York State Comptroller’s office regularly publishes budget performance reports that detail the financial activities of state agencies, including expenditures and revenues. These reports are designed to be user-friendly and accessible to the public.
London has the London Datastore. The Greater London Authority (GLA) provides a comprehensive online platform where users can access a wide range of data, including budget documents, financial reports, and performance metrics. This portal allows for easy navigation and analysis of London’s financial information.
Also, the City of London has implemented various transparency initiatives that require public bodies to publish their budgets, spending, and contract information online. This includes detailed reports on expenditures and audits, which are readily available to the public.
The availability of these resources encourages public engagement and accountability. Citizens can easily access information about how their government operates, which promotes transparency and trust in public institutions.
In summary, both New York and London exemplify best practices in budget transparency through easily accessible online portals that provide comprehensive financial information and encourage public oversight
Elusoji: Are there specific actions the government can take this year to promote transparency?
Adenuga: To promote transparency, the government can publish detailed budget documents and implementation reports online, establish a dedicated portal for public access to financial data, engage civil society organizations in monitoring budget performance, and commit to regular public forums to discuss budget-related issues and gather feedback.
