BREAKING: Lagos may not borrow to finance ₦3.367trn budget – Commissioners

Fresh facts have emerged that Lagos State Government may not borrow to finance its whopping ₦3.367trillion budget for the year 2025.

This was revealed by the state’s Commissioner for Economic Planning and Budget, Mr Ope George and his counterpart, Commissioner for Finance, Abayomi Oluyomi at a press briefing to analyze the year 2025 budget held at the Bagauda Khalto Press Center, Alausa Ikeja.

The duo emphasized 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 N3.366trn of the 2025 budget, which according to the Commissioner, will be funded from a total revenue estimate of N2.968trn, comprising Internally Generated Revenue (IGR): N2.230trn, Capital Receipts N111.839bn and Federal Transfer N626.137bn.

The target revenue of N2.968 trillion represents a monthly revenue target of 247.331 billion.

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

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

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 Loan 28.751bn, Internal Loans 203.831bn, Bond Issuance 150.000bn and Others 16.080bn.

A total expenditure of ₦3.367 Trillion is budgeted for Y2025, broken down as follows: Recurrent Expenditure 1.296trn, Capital Expenditure 2.071trn Capital to Recurrent ratio =62:38.

The component of the Recurrent Expenditure is as follows: Total Personnel Costs 401.120bn, Total Overhead Costs 799.511bn and Debt Charges 95.000bn.

The Recurrent Expenditure stood at 38% of the Total Budget size, out of which the Personnel Cost is N401.120bn representing 12% of the Total Recurrent Expenditure.

The Personnel Cost in Y2025 increased by N146.003bn compared to Y2024, the increase is a reflection on the State’s commitment to implement the salary increment to cushion the effect of high inflation and the removal of fuel subsidy.

On the other hand, the Capital Expenditure accounts for 62% of the total Budget size. This is a demonstration of the administration’s commitment to massive infrastructure renewal and development as well as completion of ongoing projects.

The Sectoral allocations is as tabulated below: General Public Services 398,368,579,418 Public Order and Safety 91,472,518,204 Economic Affairs 162,467,077,787 Environment 75,842,862,616 Housing and Community Amenities 26,000,691,418
Health 173,847,292,450, Recreation, Culture and
Religion 37,782,405,139 Education 166,310,716,148
Social Protection 32,805,054,933.

Highlights on Infrastructure Development across five divisions includes the following: Construction of Samuel Ekundayo /Toga Road, Badagry; construction of Abaranje Road, Alimosho; construction of Adamo-Akanun-Agunfoye Lugbusi Roads, Ikorodu; construction/Rehabilitation of Roads in Ikeja GRA (Oba Dosunmu Road, Sasegbon Street, Sobo Arobiodu Street e.t.c)

Others include, Rehabilitation/Upgrading of the Lekki-Epe Expressway: Phase IIA (18.600 km); completion of the Abule Egba, and Ajah Bus Terminals; construction of Iyana-Ipaja Bus Terminals; construction of the Opebi Link bridge to Maryland that will significantly improve travel time and alternative route options the axis; rehabilitation/Upgrading of Eti-Osa Lekki-Epe Expressway Project from Eleko T-Junction – Abraham Adesanya.( Phase II); construction of Lekki-Epe Airport Road and construction of Omu Creek Road.

The rest are, Urban renewal/technical studies on 4th Mainland Bridge; construction of Lagos Badagry Expressway; dualization of Ojo Road/Baale Adeyemi, Ojo; construction of Lekki/Epe(Orisa) Bridge and approach road and construction of second phase of Lagos Rail Mass Transit System (LRMT) from mile 2 to okokomaiko.

‘’In addition, Development of the 68km Green Line rail from Marina to the Lekki Free Trade Zone. Completion of 13 new jetties across the State, in addition to the upgrade works ongoing at existing jetties.

‘’Completion of the Stadia in Ikorodu, Badagry, Epe, Ifako-Ijaye, Ketu, Ibeju-Lekki, Sari Iganmu and Ajeromi to facilitate youth development and community sports and construction of NYSC Camp (Permanent Site)

‘’Provision of Housing Units across IBILE, to transform lives and build a resilient and thriving State. (Completion of 444 units of building Projects at Sangotedo Phase II, Completion of 420 units of building Projects at Ajara-Badagry, Completion of 136 units of building Projects at Ibeshe II and Epe. Construction of Egan Phase II and III, among others.)’

The Commissioner stressed that, “The ‘Budget of Sustainability’ is not just a fiscal document but it’s structured around providing economic stability, environmental stewardship and social equity to ensure that Lagos continues to thrive sustainably for generations to come.

“The Y2025 Budget emphasizes on five key pillars; infrastructure and environmental sustainability, Economic diversification, Social inclusion and Human Capital Development, Governance and institutional reforms.”