Home Economy Lagos State to spend N2.246trn in 2024 fiscal year

Lagos State to spend N2.246trn in 2024 fiscal year

by Business News Report

Lagos state has budgeted N2.2 trillion for the fiscal year 2024 as the state  Governor. Babajide Sanwo-Olu on Wednesday presented the amount budget for 2024 fiscal year to the state House of Assembly. The budget he tagged ‘Budget of Renewal’, is made up of N1.02 trillion for recurrent expenditure and capital expenditure estimate of N1.224 trillion. The recurrent expenditure constitutes 45 per cent of the budget, while capital expenditure makes up 55 per cent. According to the Governor, during the presentation of the 2024 budget, the state projects an IGR of N1.251 trillion plus a total Federal transfer of N596.629 billion to fund its N2.246 trillion budget. This figure represents a 17.35% increase from the N1.066 trillion targeted in the 2023 budget.

During the budget presentation at the Lagos State House of Assembly on December 13, the governor said that N1.224 trillion, representing 54% of the budget will be spent on capital expenditure, while N1.021 trillion, representing 46% of the budget will be spent on recurrent expenditure. Lagos State has consistently been the state with the highest internally generated revenue in Nigeria for over 20 years. In H1 2023, Lagos State was reported to have generated about N400 billion, while in 2022, the National Bureau of Statistics noted that Lagos generated N651.15 billion, while Rivers State in a distant second generated N172.82 billion in IGR. The hike in the state’s projected IGR is possibly linked to an improved tax drive, as the state, as well as the Federal Government, targets improved tax collection in the coming fiscal year. In the 2024 Lagos State budget, there is a 117.56% growth in the targeted total Federal transfer from the 2023 budget. As VAT makes up a major part of the projected Federal transfer, it is expected that there will be an increased VAT collection drive in the coming year. Over the past weeks, the Lagos State Internal Revenue Service introduced numerous solutions across different sectors to improve tax collection across Lagos State. Including the introduction of the Eco Fiscal System, which is an automated invoicing solution for revenue collection. It is also expected that in 2024, there will be intensified efforts by the LIRS to collect the 5% consumption tax imposed on consumables and personal services in Lagos State.

Sanwo-Olu said development of infrastructure such as Fourth Mainland Bridge, Food and Logistics Hub and Lagos/Epe International Airport would be the key focus of the budget. He said that the budget was also designed to cushion effects of the removal of petrol subsidy. The governor said the budget would also give priority to investments in technology, adding that the state government had already disbursed over N500 million to more than 40 tech startups as part of the provisions of the 2024 budget. He said the disbursements were done through the Lagos State Science Research and Innovation Council (LASRIC). 

“Through the Lagos State Science Research and Innovation Council (LASRIC), we have disbursed over half a billion Naira to more than 40 innovative startups in Lagos. LagRide was birthed by a start-up that took second place in the first Transportation Hackathon challenge we launched in 2019. The Lagos Cowry Card, Lagos’ version of the UK’s Oyster card, usable across our BRT, Ferry, and Train services, was developed by Touch and Pay Technologies, a startup run by young entrepreneurs.” He said the state government had also empowered more than 350 young technology entrepreneurs through the Lagos Innovates Voucher Programme which provides access to electricity, internet services, and other benefits, through partner hubs. 

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