Lagos may not borrow to finance N3.367trn budget – Commissioners

By Lukman Olabiyi

Lagos State Government, on Friday, held that there is possibility that it may not borrow to finance its whopping ₦3.367trillion budget for 2025.

This was revealed by the state’s Commissioner for Economic Planning and Budget, Mr. Ope George and his counterpart at the Ministry of Finance, Abayomi Oluyomi at a press briefing to analyse the budget.

The duo emphasised that the state government has put strategic plans in place to generate more money to take care of her budget deficit.

Giving a breakdown of the N3.367 trillion budget, which the commissioners said will be funded from a total revenue estimate of N2.968 trillion, comprising Internally Generated Revenue of N2.230 trillion; capital receipts, N111.839 billion; and federal transfer N626.137 billion, they explained that the target revenue of N2.968 trillion represents a monthly revenue target of 247.331 billion.

George said LIRS is expected to contribute 63 percent (N1.4trn) of the projected IGR, while other MDAs of the government will generate about 37percent (N830.177bn).

According to him, deepening revenue and increasing the tax net through the deployment of technology, economic intelligence, data gathering and analysis amongst other initiatives will achieve the target.

George said: “We believe that there are huge revenue generating opportunities in the informal sector, tourism, real estate, transportation, and trade.

“The deficit of ₦398.662bn is projected to be funded by Internal, External Loans, Bond Issuance and others.”

According to the commissioner, the deficit funding Sources Provision are external loans, 28.751bn; internal loans, 203.831bn; bond issuance, 150.000bn, and others, 16.080bn.