Lagos targets N60b monthly IGR to finance N1.16tr 2021 budget

• Allocates N15b to rebuild assets destroyed during #EndSARs protests
• Saves N12b from loan restructuring

The Lagos State Government has disclosed that it was targeting an average of N60b monthly Internally Generated Revenue (IGR) to fund the N1.16tr 2021 budget.

Commissioner for Economic Planning and Budget, Sam Egube, who gave details of the 2021 appropriation bill yesterday, disclosed that the state projected N723. 817b IGR, while the Lagos State Internal Revenue Service (LIRS) would generate N512b.

Egube said: “A significant percentage of the projected Total Internally Generated Revenue (TIGR) of N512b is expected to be contributed by the LIRS.

“We shall achieve this by expanding the tax net by simplifying the process, improving transaction taxes and efficient use of technology in addition to improving the work environment, training and tools of tax administration personnel.

“This will improve operational efficiency of revenue generating agencies, which we believe, have huge revenue generating potential, including real estates, transportation sectors and markets. We will continue to use data and intelligence to unravel revenue opportunities and leakages.”

“The Ministry of Works has the largest share of the budget with N244. 8b allocation, while Education and Health received N146. 9b and N105.9b being the second and third largest allocation of the budget.”

He explained that N150.7b was provided for the maintenance of roads and other ailing infrastructure in the state.

“The increase will address government’s zero-pothole strategy, on Lagos roads, create link-roads within the metropolis to resolve traffic congestion and its attendant risks. It will also cater for N15b for The Rebuild Lagos Project Trust Fund and N11b for reconstruction of Lekki-Epe expressway from Eleko junction to Epe T-Junction (Phase One).

Others are N8.70b for Lekki Regional Roads and N19.5b under the Project Stabilisation Fund to intervene in various projects,” he said.

Egube revealed that the state existing internal loans were restructured from an interest rate of 20 per cent to 12 per cent and single digit interest rates in some cases, resulting in cost savings of about N12b.

On the 2020 budget, Egube said the state was recovering from the COVID-19 Pandemic, the #EndSARS protests and their socio-economic impacts.

“However, as at third week of December 2020, our revenue performance reached 93 per cent, while our capital expenditure and total recurrent expenditure attained 80 per cent and 86 per cent performance.

“Following this trend, we are positive that we will close the year with a at least 86 per cent performance. In spite of the challenges, we made progress in finance, health, education, transportation, agriculture, infrastructure and environment sectors,” he added.