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

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

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

TheCommissioner of Finance, Dr. Rabiu Olowo, said this at thefacts-behind-the-figures media budget presentation.

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

Givingan overview of the 2020 budget Mr. Sam Egube, Commissioner of Economic Planningand Budget, said the state achieved a performance of 86% and achieved revenuegeneration of 93%.

Providinginsight into the 2021 budget highlights he said the total estimate was 1.164trnand would be funded from a total revenue estimate of N971.02bn, comprised ofthe following:

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

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

Thismeans the ratio for the 2021 budget is 60% capital and 40% recurrent showingthat Lagos is maintaining focus on developing its infrastructure and invest inhuman capital development, to drive a 21^st-century economy.

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

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