The Lagos state government has reported an Internally Generated Revenue (IGR) of approximately N400 billion as of June 2023, according to the commissioner for Economic Planning and Budget, Ope George.
This announcement was made during the 2024 Budget Consultative Forum held in Ikeja.
The forum took place across five divisions within the state: Ikorodu, Badagry, Lagos Island, Epe, and Ikeja.
The Commissioner of Budget and Economic Planning, Ope George expressed the government’s aspiration to achieve this revenue target before the year’s end.
Highlighting the importance of funding the budget effectively, George emphasized the need to raise the target for 2024.
He emphasized the government’s strong credit rating and robust IGR, which can attract the right investments and funding.
The commissioner suggested a mix of IGR and various funding mechanisms, including public-private partnerships (PPPs) and securing favourable concessions.
Support for the informal sector
George stated, “We’re fortunate because we are going in the right direction, and hopefully, we can continue to build on that to attract the right investments and funding to be able to independently finance our budgets and projects.”
In addition to addressing the formal sector, George assured support for the informal sector, particularly Small and Medium Enterprises (SMEs), through grants and soft loans to bolster their resilience and contribute to economic sustainability.
He added, “We have a significant informal sector, and we hope to tap into its potential benefits. It’s something the state is keen to explore. We have the Lagos State Employment Trust Fund that provides assistance to small and medium enterprises through loans and grants, and we will continue to enhance it. SMEs are integral to our economy.”
The focus of the 2024 budget
Olalekan Balogun, the Special Adviser to the Governor on Economic Planning and Budget underscored that the 2024 budget’s primary focus is the development of the state and its residents.
It aims to provide improved welfare packages aligned with the current economic landscape.
This includes a strong emphasis on equitable wealth distribution and critical infrastructure development in each division of the state, fostering a more sustainable standard of living.
What you should know
Lagos state is Nigeria’s biggest economy, and the fifth biggest economy in Africa. Its GDP in 2022 stood at over $100 billion.
Its internal revenue in 2021 was over N500bn. However, Lagos still has a large debt profile. According to the DMO, the state has a debt stock of N996.44bn.