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2021 Budget: Lagos to Raise N100bn Debt Through the Capital Market to Finance Development

State and Local Govts	761 VIEWS
State and Local Govts
761 VIEWS

Friday, January 15, 2020 / 5:46 AM / Ottoabasi Abasiekong for WebTV / Header Image Credit: WebTV

The Lagos State Government has said that out of the N193bn Debt it would raise to finance its 2021 budget, would access the domestic capital market for N100bn by way of a revenue bond to fund critical infrastructure and development projects.

The Commissioner of Finance, Dr. Rabiu Olowo, said this at the facts-behind-the-figures media budget presentation.

Dr. Olowo said that N52bn will be borrowed externally while N41bn will be borrowed domestically. According to him, the Lagos State debt charge was N31bn, while debt repayment was N158bn.

Giving an overview of the 2020 budget Mr. Sam Egube, Commissioner of Economic Planning and Budget, said the state achieved a performance of 86% and achieved revenue generation of 93%.

Providing insight into the 2021 budget highlights he said the total estimate was 1.164trn and would be funded from a total revenue estimate of N971.02bn, comprised of the following:

Internally Generated Revenue: N723.81bn
Capital Receipts: N71.81bn
Federal Transfer: N175.4bn

According to the budget breakdown, N702.93bn would be allocated to capital expenditure and N460.58bn would be deployed for recurrent expenditure.

This means the ratio for the 2021 budget is 60% capital and 40% recurrent showing that Lagos is maintaining focus on developing its infrastructure and invest in human capital development, to drive a 21^st-century economy.

The Economic Planning and Budget Commissioner informed the media that the 2021 budget was consistent with the state's T.H.E.M.E.S agenda and was designed to prioritize the completion of inherited projects.

For further enquiries or comments on this news story contact Ottoabasi.abasiekong@proshareng.com.

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