TheCable

The Lagos state government says the N1.24 trillion targeted revenue in 2022 will be used to fund the N521.28 billion deficit in the budget.

Sam Egube, the commissioner for economic planning and budget, disclosed this during a media briefing at the state secretariat on Friday.

He said the state hopes to amass N980 billion through internally generated revenue (IGR) to finance the budget, with the state internal revenue service expected to generate 73.5% (N599.04 billion) while about 19.2%, culminating in N156.65 billion, is expected to be generated by other MDAs of government.

On November 24 2021, Babajide Sanwo-Olu, governor of Lagos, had presented a proposed 2022 appropriation bill of N1.388 trillion to the Lagos house of assembly for consideration and assent.

After engagements with the respective ministries, departments and agencies( MDAs), an amended bill of N1.758 trillion was subsequently passed on December 29, 2021.

Governor Sanwo-Olu signed the budget into law on December 31, 2021.

According to Egube, the revised 2021 budget of N1.257 trillion had total revenue of N984.573 billion and deficit financing of N271.994 billion.

The capital to recurrent ratio stood at 59:41, that is, capital expenditure of N743.224 billion and a recurrent expenditure of N513.343 billion.

As at November 30, 2021, Egube said the budget posted a performance of 73 percent.

“Our revenue performance was 75 percent, while capital and recurrent expenditure performed at 65 percent and 83 percent respectively,” he said. 

“The approved Y2022 Budget of N1.758 trillion made up of N1.167 trillion capital expenditure and N591.281 billion recurrent expenditure, resulting in capital to recurrent ratio of 66:34, which is strongly in favour of capital expenditure.

“Total revenue is estimated at N1.237 trillion while deficit funding requirement is N521.275 billion, which at 21 percent of debt service to total revenue is within the fiscal sustainability benchmarks of 40 percent.

“Our overriding budget objective to achieve a budget of consolidation is: Substantially, complete existing and ongoing infrastructure project; infrastructure is essential to state-wide economic and social development.

“We have increased our investment in infrastructure by 86 percent over the prior-year budget to N619 billion representing 35 percent of the entire budget size.

“Prioritisation of existing, contractor funded (front-loaded) infrastructure projects are completion of eight stadia across the five Ibile divisions of Lagos state, to facilitate youth development, engagement and community sports, construction and rehabilitation of schools across the state to significantly improve access to quality education, construction of the 6-lane reinforced concrete Lekki Epe Expressway from Eleko junction to Epe T-junction.

“This strategic project is aimed at accommodating the increasingly huge and heavy vehicular movement in the Lekki Epe axis especially when the deep seaport and the Dangote refineries et al comes into operation, procurement of 62 fire vehicles to improve fire response service all over Lagos by further decentralization of operating locations all over the state. This will strengthen our emergency response capability.

“Construction of 130 bed new Massey ultra-modern and fit for purpose Paediatric programmed and emergency general hospital. We believe that when this hospital, which will be located at Lagos Island is completed, it will be the largest specialist children hospital in sub- Saharan Africa.

“Construction of the Opebi Link bridge to Maryland that will improve significantly travel time and alternative route options the axis. All these projects are contractor funded, with structures that provide very beneficial payment terms that give the state upfront value (front-loaded) ahead of payments; thereby increasing the sustainability benefits to the state.”

The commissioner noted that there was a difference between the total budget size presented by the executive and the final size passed by the legislature.

Furthermore, he added that the difference was largely accounted for by the decision during the bilateral meeting with the MDAs to further accelerate already existing projects to bring them to substantial closure.

He listed some of the projects under the contractor-financed programmes, including the 24km red line rail from Agbado to Oyingbo (phase 1) to include 10 bridges/overpasses, 13 pedestrian bridges and eight train stations.

According to him, the 13-kilometre blue line rail from Mile 2 to Marina with sea crossing (phase 1) and the 20 km Lagos Badagry expressway to Okokomaiko projects are estimated to gulp N153 billion for the completion of the first phase.

Other infrastructure projects include expanded drainage construction, rehabilitation, maintenance program, channelisation of waterways, among others.