LAGOS IS FOURTH WEALTHIEST IN AFRICA. YET, PEOPLE STARVED

Source: Lifeinslum Media & Photos.

Davy Fidel

(Author/Freelance)

In the year 2022, Lagos was ranked the "fourth wealthiest city on the African continent with a total private wealth of $97 billion", Nairametrics reported. It's added that Lagos is behind the three leading wealthiest cities in Africa: Johannesburg, Cape Town and Cairo. The total private wealth of each of these cities is US$239 billion, US$131 billion and US$228 billion respectively.

Nairametrics also reported that "there were 305 individuals on the continent with net assets of $100 million or more, while the number of billionaires stood at 21." This is among the millions of people living in these cities with Lagos included. A city where the cost of living is high and politicians are not interested in implementing social welfare packages. If at all they will do it. It will be at the cost of people. 

Private capital is the order of business under capitalism. It is a system that ensures that corporate organisations that are friends of capitalist politicians protect their interests through the policies they implement.  Other states in Nigeria are the same thing as Lagos. They are not different. It is the way politicians are managing the public fund and using it to contract social infrastructures and development in the State. 

The "$97 billion" and Lagos, the "fourth wealthiest city on the African continent" does not reflect in the social condition of people despite the government having claimed they are building infrastructures: bridges and roads. Many of the projects are diverted projects that the private sector is doing. And it has led to many families losing their homes because of a lack of proper compensation. For example, road construction.

Rebuilding Lagos that will be liveable for people and improve social conditions and welfare is not through contracting social infrastructures by using public funds to execute these projects. It will require the direct control and management of workers and community representatives to manage public funds. 

Of course, politicians and private stakeholders benefitting from State policies will argue Lagos has improved on social infrastructures. But many of the projects are world bank funds. In 2014, Vanguard reported that "Lagos spent N160 bn World Bank loan" under the Fashola state government. The  Public Private Partnership was the set goal of contracting social infrastructures, which is a means of making the private sector richer. 

This world bank projects the Lagos State government have claimed. It has increased the state debt profile. On June 30, 22. The Debt Management Office releases a debt profile of 36 states. And Lagos was indebted with a total sum of  $1.2bn This is both the multilateral and bilateral debt as the DMO chart analyzes it. And Lagos is leading compare to other states. 

In 2023, Lagos has a budget of N1.6 trillion. Recurrent is N759 billion (45%) and Capital is N932 (55%). Meanwhile, every project executed in the state is through contract. The idea that government can not do it alone is always the case. The governor said. "We will continue to explore public-private-partnership strategies in the provision of infrastructure, social services, and the conversion of challenges to opportunities within the context of scarce resources."

In reality, the biggest problem of these funds generated in the Internal Generated Revenue is the lack of proper utilisation. This implies creating jobs that must have all the benefits a worker must have. Of course, the governor has announced that Imota Rice Mill, "when completed will create about 350,000 direct and indirect jobs."

However, these jobs don't mean workers shall receive better wages. Or, workers will be allowed to have a union that will defend their interests, if the management begins to attack them. None of these shall be allowed. It will be a pool of casualization and attacks on workers' rights. This is not the first time the government has declared the intention of commencing a rice mill. Lake Rice is an instance under Ambode. 

Lagos is rich enough to turn around the economic hardship of people on average. But because of the policies of the government that is resting on the shoulder of Public Private Partnership. Many of the expected needs of people like water, housing, roads, transport etc are in the private sector's custody. 2023 will not be any different compared to 2022 for many families and homes. 

On Business Day, Lagos has an IGR of N753.46 billion representing 39.7 per cent f the N1.89 trillion IGR made by the 36 states of the federation and the FCT Abuja. This also includes the N40.3 billion collected as direct taxes and the N19.70 billion generated on road taxes in 2021. These funds, if managed well as expected, are enough to provide a good life for people. 

Housing is a major crisis. And, Lagos has a 2.5 million housing deficit. Hundred and thousands of people don't have a home to lay their heads in. People are squeezing to share apartments and for those who have where to stay, owners of housing estates are threatening to increase their rent. This is happening because the government is not building affordable houses so people can stay.

The people need a government that will use public funds to invest in public amenities and organise the city so that people can live happily. To make the city work and liveable for people, it will require a party of the mass. A party that must challenge the ruling party and its policies in the state. The party must be ready to organise the people with a mass program that will take over Lagos from those reaping it apart.