Lagos targets N60.31bn IGR monthly for 2021

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Lagos State government, on Thursday, said it is targeting a total of N723.817bn Internally Generated Revenue (IGR) for the 2021 fiscal year, bringing the monthly figure to N60.31bn.

The State Commissioner for Economic Planning and Budget, Mr Sam Egube, disclosed this while giving the 2021 budget breakdown at a press briefing which took place at Alausa, Ikeja, saying the state had earmarked N15bn for the Rebuilding Lagos Project/Trust Fund, in the aftermath of #EndSARS destruction of Lagos in October 2020.

Egube disclosed that the total size stands at ₦1.164trn, saying it would be funded from a total revenue estimate of ₦971.028billion, comprising total Internally Generated Revenue of N723.817bn, with Capital Receipts standing at N71.811bn, while Federal Transfer is projected at N175.400bn.

“The total budget size is ₦1.164trillion and will be funded from a total revenue estimate of ₦971.028billion, comprising of the following: Total Internally Generated Revenue (TIGR): N723.817bn, Capital Receipts, N71.811bn, Federal Transfer, N175.400bn,” the commissioner stated.

It would be recalled that the budget tagged “Budget of Rekindled Hope,” was presented by the state governor, Mr Bajbajide Sanwo-Olu, on Tuesday, November 10, 2020, to the Lagos State House of Assembly for consideration and assent.

The Appropriation bill was subsequently passed on Tuesday, December 29, 2020, by the State House of Assembly and was signed into law by the governor on December 31, 2020.

The approved Y2021 Budget size is ₦1.164trn, which is made up of ₦702.935bn for Capital Expenditure and ₦460.587bn for Recurrent Expenditure, giving a 60:40 Capital to Recurrent expenditure ratio strongly in favour of Capital Expenditure.

According to the commissioner, a significant percentage of the projected TIGR of N512bn is expected to be contributed by Lagos State Internal Revenue Service (LIRS), saying this would be achieved by expanding the tax net and simplifying the tax process as well as through appropriate use of technology, among others.

“We shall achieve this by expanding the tax net by simplifying the tax process, improving our transaction taxes and the appropriate use of technology in addition to improving the work environment, training and tools of our tax administration personnel. This will improve the efficiency in operations of all revenue-generating agencies.

“We believe that there are huge revenue-generating opportunities in the state, including real estates, transportation sectors and our markets generally, etc. We will continue to use data and intelligence to unravel revenue opportunities and leakages,” Egube said.

He said the state government would continue to maintain a relatively conservative posture in its projection for Federal Transfers/Receipts compared to the annual run rate in 2020 in view of the production challenges within the oil sector by keeping its expectation at N175bn.

This was just as the commissioner disclosed that the deficit of ₦192.494bn was projected to be funded by a combination of internal and external loans.

The commissioner, while giving sectoral budget analysis, disclosed that a budgetary provision of N150.753bn was provided for the maintenance of roads and other infrastructures within the state, saying this was to emphasise the administration’s resolve towards enhancing infrastructure and human capital development.

According to him, the increase shall address the zero-pothole strategy, create link-roads within the metropolis to resolve traffic congestion and its attendant risks, adding that the provision would cater for the N15bn for The Rebuild Lagos Project/Trust Fund, N11bn for the reconstruction of Lekki-Epe Expressway from Eleko Junction to Epe T-junction (phase one) and N8.750bn for Lekki Regional Roads.

Others, he said, include: N19.500bn set aside under Project Stabilisation Fund to intervene on various projects across the state, the N10bn under State Infrastructure Intervention Fund to also intervene on Roads within Local Government and LCDAs, the N13.115bn earmarked for construction/completion of Agege Pen Cinema Flyover, Oregun Bridge Road Network, Agric Isawo Road, Bola Ahmed Tinubu Road, Igbogbo, Ijede Road and Mba Cardoso Road as well as N5.9bn to be spent on Lagos- Badagry Expressway, among others.

On Traffic Management/Transportation, Egube said a total sum of ₦72.930bn was budgeted under the Transportation family, which include the Blue and Red rail lines; Junction improvement all around the state; completion of trailer parks in the State; development of quality bus corridors, among others.

The commissioner disclosed that the sum of ₦23.502bn budgeted for Science and Technology was provisioned for building and upgrading of IT Infrastructure Statewide, e-GIS Land automation system, Single Billing system and ease of tax payment, Levies and other revenue enhancement initiatives.

“The Smart City project is targeted at deploying about 2000 intelligent cameras in strategic locations around Lagos and leverage technology to enhance security and traffic management in the State and will also enhance our revenue-generating efforts.

“This administration will in addition deliver a 3000km metro-broadband fibre infrastructure around the state through an ongoing PPP initiative.

“Furthermore, we will continue to invest in the Lagos State Resident Registration Initiative in conjunction with NIMC to gather useful resident data and information for planning purposes,” he said.

On Health, Egube said a total sum of N105.988bn (as against a total sum of N111.775bn in Y2020) was provided for the continuous upgrading/renovation of health facilities and completion of on-going healthcare infrastructure.

According to him, the affected infrastructure include the completion and equipping of the New Massey Children Hospital, General Hospitals, Ojo, Construction of Infectious Disease Research Center, Yaba, Upgrading of e-Health Platform for Health Insurance, Rehabilitation & Upgrading of General Hospital, Lagos and Construction of the Oncology Center at Gbagada.

Speaking further, Egube disclosed that a total of N33.952bn was provided for Housing and Community Amenities, saying these include N4bn for the completion of on-going housing estates and N3.4bn for new Housing projects.

“It is the intention of the government that lifting the housing sector in a big way will require significant participation of the private sector, which we intend to pursue aggressively and deliberately.

“The sum of N594million has also been provided to continue the implementation of an electronic Certificate of Occupancy and Title re-certification project, together with the issuance of e-planning approvals,” he said.

He said the state government was poised to ensure self-sustenance in staple foods and would continue to expand its food productions centres in areas of its comparative advantage, adding that it would do this through collaboration with other states and the Federal Government.

“In line with this, a sum of N11.715bn was approved. Out of which we plan to spend N2.755bn on Agro-Processing, Productivity Enhancement and Livelihood Support (APPEALS), N1.349bn Lagos Wholesale Produce market, N1.7bn for Rice Value Chain, N500M for Development of Ketu Ereyun, N525M for Value Chain Empowerment and N310M for Shonghai Farms, among others,” the commissioner stated.

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