Lagos State Governor Sanwo-Olu

Lagos State Government says it plans to raise N193.49 billion through domestic and international loans to supplement and fund its N1.164 trillion budget in 2021.

Commissioner for Economic Planning and Budget, Lagos State, Mr Sam Egube who spoke at the state’s “facts-behind-the-budget session on Thursday, said the state plans to raise N100 billion through domestic bond issuance and also raise other loans of about N41 billion. The state plans to source N57 billion from foreign sources.

In his own remarks, the State Commissioner for Finance, Dr Rabiu Olowo, said the debts are totally tied to capital projects.

Rabiu noted that with a debt-to-revenue ratio of 19.8 per cent in 2020, projected to rise to 22 per cent in 2021, the state remains considerably below World Bank and Federal Government’s benchmarks of 40 per cent and 30 per cent respectively.

According to the budget breakdown, total estimated revenue is N971. 03 billion, consisting of N723. 82 billion from internally generated revenue, N71. 8 billion of capital receipts and N175. 4 billion in federal transfers.

The budget is made up of N702. 94 billion for capital expenditure and N460. 59 billion for recurrent expenditure, implying a ratio of 60:40 capital to recurrent ratio.