Lagos is financially, economically stable – Commissioner

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Lagos state commissioner for Finance, Rabiu Olowo, has described the economic and financial status of the state as ‘stable’.

The commissioner in  a statement on Monday said Lagos State has continued to meet all its recurrent and loan service obligations.

Mr Olowo was reacting to the publication by a public finance analyst, BudgIT titled ‘Ability of States to Meet Monthly Recurrent Expenditure and Loan Repayment Obligations, 2019’.

He said the information was  in incorrect, inaccurate and a gross distortion of the actual facts, though he acknowledged that BudgIT has apologized for its error.

According to him, below is the accurate information as extracted from Lagos State’s published 2019 Audited Financial Statements:

Total Revenue (N) Recurrent Expenditure and Loan Repayment Obligation (N) Surplus or Deficit (N)
644,762,788,340.04 554,241,725,038.00 90,521,063,302.04

• As indicated in Lagos State’s published Financial Statements (and as extracted above), the information in the table published by BudgIT should have correctly indicated a surplus of N89 billion (Eight-Nine Billion Naira)

• Lagos State Government continues to efficiently explore options in both the Financial and Capital Markets, to extract optimal funding solutions, which will enhance the administration’s ability to deliver on the construction, renewal and improvement of the deficit in social and physical infrastructure for the benefit of Lagosians; who represent 10% of Nigeria’s population.

• In the year under review (2019), Lagos State restructured all existing internal loan facilities to 14% per annum, from between 18% and 20% per annum. These rates have even more recently been re-negotiated to circa 12% per annum.

• Lagos State is the only State that is not reliant on the allocation from the Federal Account Allocation Committee, with Internally Generated Revenues representing circa 72% of the State’s aggregate revenues to enable it address challenges faced by mega cities world over. As at August 2020, Lagos State’s Internal Revenue Service is doing 103% above budget, and well above 2019 figures, despite the COVID-19 pandemic which demonstrate the fiscal resilience of the Babajide Sanwo-Olu’s administration for a Greater Lagos.

Mr Olowo added that the state government has continued to expand funding sources whilst also ensuring that prudence and sustainability are at the fore of all funding and expenditure decisions.

Read the original article HERE

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