7th February, 2023
The Lagos State Government has explained how it will source for the N350.411 billion to fund the 2023 budget deficit of N1.768 trillion.
At a news conference on Tuesday in Alausa, Ikeja, to give analysis of the budget, Commissioner for Economic Planning and Budget, Sam Egube, said the budget would be funded by a combination of internal external loans and Bond Issuance.
He said the state government would borrow N14.958 billion from external sources to fund the budget.
Egube added that the government would also borrow N235.453 billion from internal sources to also fund the budget.
The commissioner disclosed that the sum of N100 billion would be sourced through Bond issuance.
Also, Egube revealed that of the N1.143 trillion Total Internally Generated Revenue (TIGR), the Lagos Internal Revenue Service (LIRS), is expected to contribute 65 percent (N682.906bn) of the projected TIGR, while about 23 percent (N241.899bn) is expected to be generated by other Ministries, Department and Agencies (MDAs).
However, he said 27.3% of its entire 2023 Budget amounting to the tune of N482.86bn would be expended to provide modern infrastructure to its citizens for the year.
He said the 2023 Budget christened budget of Continuity was prepared to continue the good work of the administration especially in delivering reliable and sufficient infrastructure that meets the needs of a 21st century city.
Egube said “The State is totally committed to ensuring that the dividend from its investments in Integrated Transport Infrastructure, which will materialize into the birth of the fully functional light rail (Red-Blue) system, the first of its kind by a sub-national Government in Africa and the 37km Fourth Mainland Bridge will be felt by the citizens of the State.
“These will reduce commute time to millions of Lagosians, reduce congestion on the existing Carter, Eko, Third Mainland Bridges and Ikorodu Road thus increasing productivity, quality of life, as well as improving the overall transportation system in the State.”
The Commissioner highlighted the infrastructure Budget captures in the budget as follows: Construction of the second phase of the blue line from Mile 2 to Okokomaiko, Completion of 8 Stadia across the 5 IBILE divisions of Lagos State, to facilitate youth development, engagement and community sports, Continuous Construction and Rehabilitation of schools across the state to significantly improve access to quality education, Completion of 130 bed New Massey ultra-modern and fit for purpose Pediatric programmed and emergency general hospital that will be the largest specialist children hospital in Sub- Saharan Africa.
Others include, the Completion of the modern 280 beds General Hospital serving the people of Ojo and its environs which is currently at 47% completion, Completion of the mental health facility in Ketu Ereyun in Epe local government, Completion of the Opebi Link bridge to Maryland that will improve significantly travel time and alternative route options the axis, Rehabilitation/Upgrading of Phase II Eti-Osa – Lekki-Epe Expressway Project from Eleko T-Junction – Abraham Adesanya among others.
He stated that “most of these projects are contractor funded, with structures that provide very beneficial payment terms that gives the state upfront value (front loaded) ahead of payments; thereby increasing the sustainability benefits to the state”.
Meanwhile, the state government has also allocated 13% of the Budget for the provision of affordable and world-class education, healthcare and social services for its teeming populace to make the system accessible and affordable.
He said, “Human capital continues to be an area of deep interest to the State. We believe that a population that is healthy, skilled and inclusive can only convert the opportunities in the State to value.”
He added that “We also intend to expand our effort in Social Interventions with an investment of 9.6bn as against 8.3bn in Y2022 Social Intervention & Humanitarian Programme that will serve as support for micro and small businesses. We will continue to procure training equipment, empowerment tools for graduates in skills and vocational centers across the State.”