The Lagos State Commissioner for Finance, Dr Rabiu Olowo, has announced that Lagos State Government had an Internally Generated Revenue (IGR) of N127 billion in the first quarter of 2021 despite the devastating effects of the coronavirus pandemic on the state’s economy.
The Commissioner in his statement said, ”Our revenue trajectory and the trend shows that Lagos is very different from others. A few years ago, our monthly IGR was about N800 million, but 15 to 20 years later, we are talking about billions.
This is not accidental, but as a result of a well-thought-out strategy, partnerships and collaborations with institutions, and investments in technology.
The commissioner said the state’s debt sustainability ratio presently stood at 17.8%, as against the ratio of between 30% and 40% recommended by regulators.
Olowo further explained that the sustainability ratio means that the state pays back its loans as and when due.
”Debt is very good, especially for a megacity status that Lagos wants to enjoy. The most important thing is debt management and one of the most respected metrics to measure debt management is the debt sustainability ratio.
This is to say how much debt do you have and how it compares with the revenue potential, your ability to pay. That is the most important thing for everyone to consider.
Lagos’ debt sustainability ratio is currently at 17.8 percent. This tells a lot about our ability to own and manage debts effectively.
As our revenue grows and we pay our debts, we will continue to take more loans so far they are used to provide capital projects that will ensure the economic success of the people, now and in the future.’’
However, Lagos State contributed N428.98 or 32.08 percent of the total N1.3 trillion Internally Generated Revenue (IGR) realised by the Federal Government in 2020, according to Sam Egube, the Commissioner for Economic Planning and Budget, Lagos State.
Egube said: “This report shows that we are on course. It is clear proof that the ‘THEMES AGENDA’ of the Governor Babajide Sanwo-Olu-led administration is an operational tool that is correctly aligned to our long-term development plan, and hooked up into our Medium Sector Strategy.”
This new perspective plan is necessary to ‘encourage citizens participation (Build Team Lagos); develop our people to drive productivity and protect the vulnerable (Building our Future); drive Lagos readiness and openness for Business (Building our Economy); optimising relevant infrastructure to support our growth (Building our 21st Century Mega-City) and engaging intergovernmental partnership; all these are aimed at improving the quality of lives of Lagosians.