Lagos has capacity to finance budget deficit – Aides  

The Lagos state government has said it has the capacity to generate more money to take care of its budget deficit. 

The state Commissioners for Economic Planning and Budget, and Finance Mr Ope George and Abayomi Oluyomi at a press briefing to analyse the year 2025 budget held at the Bagauda Khalto Press Centre, Alausa Ikeja.

Analysing the 2025 budget, Mr George said the approved budget was N3.367 trillion which comprises of N2.071trillion for capital expenditure and N1.295 trillion for recurrent expenditure, including debt charges, establishing a capital to recurrent ratio of 62:38. 

He explained that the total revenue estimate was N2.968 trillion, with a deficit-funding requirement of N398.662bn, which represents 13% of the total revenue. He, however, emphasised the budget’s strong dependence on revenue. 

The finance commissioner Oluyomi said the management of debt is sustainable because the state has very good performance initiative to generate more revenues, adding that the state has creative financing option that will not translate to debt.

“The deficit financing may not be deficit, we may not borrow money,” he said.

He explained that the focus of the government is to deliver on what the state governor, Babajide Sanwo-Olu has promised the people of the state.

Shedding more light on the focus of the state government on the budget, Mr George said the budget is not just a fiscal document but structured around providing economic stability, environmental stewardship and social equity to ensure that Lagos continues to thrive sustainably for generations to come. 

He explained that the budget is hinged on  infrastructure sustainability, environmental sustainability, economic diversification, social inclusion and human capital development, governance and human capital development.

The commissioner stressed that the focus of Lagos state government is prioritising the maintenance, upgrade and expansion of existing road networks and furniture, construction of bus terminals, jetties bridges, rail systems, housing units and digital infrastructure.