Babajide Sanwo-Olu
Sanwo-Olu presenting budget to state assembly

Mr. Babajide Sanwo-Olu, governor of Lagos State, has presented a 2022 budget of N1.388 trillion to the state house of assembly.

The budget, which represents an improvement from the state’s N1.163 trillion 2021 budget, will give priority attention to infrastructure and other key growth areas in order to consolidate the recovery of the state’s economy.

Presenting the budget titled “Budget of Consolidation,” Sanwo-Olu said the State would be spending N325 billion to deliver vital infrastructure projects in key sectors to energise and expand the growth of the state’s economy.

The key areas of growth identified by the Governor include Works and Infrastructure, Waterfront Infrastructure Development, Agriculture, Transportation, Energy and Mineral Resources, Tourism, Entertainment and Creative Industry, Commerce and Industry, Wealth Creation and Employment.

There is a projected increase in 2022 in the human capital development drive of the current administration, with an allocation of 21.24% combined in the total expenditure to education and health.

About N823.4 billion, representing 59% of the 2022 budget, is earmarked for capital expenditure. Recurrent expenditure, representing 41%, is N565 billion, which includes personnel cost, overhead and debt services.

According to Sanwo-Olu, the coming year presented an opportunity for the State Government to consolidate on the progress recorded by his administration.

“Year 2022 Budget is the next step on our journey to true and sustainable greatness in Lagos. The challenging environment requires that we focus our interventions on areas of greatest social impact and achieving the greatest good for the greatest number in the shortest possible time. Next year is an excellent opportunity for us to consolidate on what we have done so far, and ensure that every effort, investment inflow, partnership, business policy is translating maximally into noticeable positive impact in the lives of our people,” he said.

“It is in this light that we are presenting the Year 2022 Budget of Consolidation with a size of N1,388,285,459,990.51. This financial proposal is presented with a sense of duty and absolute commitment to the transformation of Lagos to a preferred global destination for residence, commerce, and investment. The budget projects to see a continuing but gradual recovery to growth in economic activity as the global economy cautiously recovers from the impact of the Coronavirus pandemic.”

Of the total proposed expenditure, N1.135 trillion would accrue from Internally Generated Revenues (IGRs) and federal transfers, while deficit financing of N253 billion would be sourced from external and domestic loans, and bonds projected to be within the State’s fiscal sustainability parameters.

The State would be earmarking an aggregate of N137.64 billion, representing 9.92% of the 2022 budget, for the funding of green investment in Environment, Social Protection, Housing and Community Amenities.

The Governor explained that the state’s continued investment in security had yielded positive results with more allocations to be channelled to the sector in 2022 to make Lagos safer for living, working and investment.

“There has been significant progress on the Lagos Rail Mass Transit projects, which include both the 27-kilometre Blue line that will run from Okokomaiko to Marina and the 32-kilometre Red line that will run from Agbado to Oyigbo and eventually to Marina,” Sanwo-Olu said.

“These rails, when completed, will deliver a combined 32.5 million people every month on their respective routes, reducing travel time by over 250 per cent, increasing the productivity and quality of life of our people.

“The Red line will come with eight new modern train stations, 10 new overpasses and 13 pedestrian bridges. These ambitious projects are expected to be commissioned in the fourth quarter of 2022.”

The governor said the state’s 2021 budget performed remarkably well despite the challenges encountered by the state, noting that the expenditure performance at the third quarter of 2021 rose to 80%

“The State Government has successfully restructured all existing loan facilities, translating into a reduction in interest rates from an average of 18 per cent to about 12.75 per cent. This year, Fitch, a reputable international rating agency, upgraded the rating of Lagos from AA+ to AAA, reflecting Lagos’ capacity to service its financial obligations, compared with national and international peers, as well as its resilient operating performance during the pandemic,” he said.

 

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