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Lagos target N1.2t, to build another link bridge, eight stages –

The Lagos state government said on Friday that the 2022 budget deficit of 521.275 billion naira is expected to be funded from the targeted revenue of 1.237 billion naira.

State Commissioner for Economic Planning and Budget Sam Egube revealed this during a press briefing on Friday.

The briefing focused on the analysis of the Budget for the year 2022, called: “Consolidation Budget”, at the Secretary of State in Alausa.

Egube said the state hopes to raise 980 billion naira from the internally generated revenue to finance the budget, with the state tax administration expected to generate 73.5% (599.04 billion naira), while around 19.2% (156.65 billion naira) is expected. be generated by other government ministries, departments and agencies.

It will be recalled that on November 24, 2021, an appropriation bill Y2022 in the amount of 1,388 trillion naira was presented by the governor of the state, Babajide Sanwo-Olu, to the House of Lagos State Assembly for consideration and approval.

After a very rigorous bilateral engagement with the respective ministries, departments and agencies, an amended bill of 1,758 billion naira was adopted on December 29, 2021 by the House of State Assembly and was promulgated by the governor on December 31, 2021.

According to Egube, the revised Y2021 budget of 1.257 billion naira had total revenue of 984.573 billion naira and deficit financing of 271.994 billion naira; The capital / recurring ratio was 59:41, representing capital expenditure of 743.224 billion naira and recurrent expenditure of 513.343 billion naira.

As of November 30, 2021, last year’s budget showed a performance of 73%, Egube stating: “Our revenue performance was 75%, while capital and operating expenses were 65% and respectively. 83%.

He added: “The Y2022 budget, which we have dubbed the ‘consolidation budget’ is a historic budget in the history of the state both in size and texture.

“The approved budget for the year 2022 of 1,758 billion naira composed of 1,167 trillion naira of capital expenditure and 591,281 billion naira of recurrent expenditure, resulting in a capital / recurring ratio of 66:34 , is strongly in favor of capital spending.

“Total revenues are estimated at 1,237 trillion naira, while the deficit financing requirement is 521.275 billion naira, which, at 21% of debt service of total revenue, is in the 40% fiscal sustainability limits.

“Our overriding fiscal goal for achieving a consolidation budget is: Essentially, completing the existing and ongoing infrastructure project, infrastructure is critical to the economic and social development of the state.

“We increased our investment in infrastructure by 86% over the previous year’s budget to reach N619 billion, which is 35% of the total budget size.

“The prioritization of existing entrepreneur-funded (upstream) infrastructure projects is the completion of eight stages in the five Ibile divisions of Lagos State, to facilitate youth development, engagement and community sports, construction and rehabilitation of schools across the state to dramatically improve access to quality education, construction of the Lekki Epe 6-lane reinforced concrete highway from the Eleko junction to the junction in T Epe.

“This strategic project aims to accommodate the increasingly huge and heavy movement of vehicles in the Lekki Epe axis, especially when the deep water port and the Dangote et al refineries come into operation, purchasing 62 vehicles firefighters to improve fire response service throughout Lagos by decentralizing operating sites statewide. This will strengthen our emergency response capacity.

Construction of 130 ultramodern New Massey beds suitable for scheduled and emergency general pediatric hospital use.

“We believe that when this hospital, which will be located on the island of Lagos, is completed, it will be the largest specialized hospital for children in sub-Saharan Africa.

“Construction of the Opebi Link Bridge to Maryland which will significantly improve travel time and alternative route options on the axis.

“All these projects are financed by entrepreneurs, with structures that offer very advantageous payment terms that give the State an initial value (in advance) before payments; thus increasing the benefits of sustainability for the state.

Regarding the development of human capital and social interventions, Egube said: “Human capital continues to be an area of ​​deep concern for the state. We believe that the opportunities of the state can only be converted into value by a healthy, skilled and inclusive population.

“This year’s budget increased investment by 30 percent to reach 325 billion naira in 2022, about 18 percent of the total budget size.

“As part of our human capital development initiatives, the Y2022 budget increased the allocation to the family for education by 25 percent to N173 billion, representing 10 percent of the size of the budget, while the family Health Department received an allocation of N132 billion, representing 35 percent increase over the budget of the previous year and 8 percent of the size of the current budget. “

Regarding food security, Egube said: “We have continued since the COVID 19 epidemic to increase our investment and focus on food security.

“We have completed Agric’s five-year roadmap to support our farmers, establish food banks and improve our food systems in general.

“In line with this posture, in 2022 we increased our budget for Agric by 34% to 27 billion naira.

“We intend to complete the Imota rice mill, which when completed will have a production capacity of 2.6 million 50-kilogram bags of rice per year and will employ over 350,000 people both directly and indirectly.

“On top of that, we will train and empower more than 40,000 women and young people in the agricultural sector. “

Regarding technology, Egbube said: “Lagos intends to be the technology hub for Africa, a major incubation and acceleration destination for technology solutions.

“We have forecast an increase in technology investments of 27% compared to the Y2021 budget to 30 billion naira.

“We will continue to invest in strengthening our intelligence gathering and capacity building capacities while improving the ease of doing business through the SmartCity project, the new Lagos Data Center project, the Eko Excel project and to the Oracle upgrade project.

“We will continue to implement in collaboration with private sector partners existing initiatives such as the 3,000 broadband fiber optic conduit infrastructure project, campus development of innovation, technology and Knowledge Entrepreneurship (KITE) in Yaba in addition to the Lagos Scientific Research and Innovation Council (LASRIC).

“All of this will strengthen our aspiration to be Africa’s technology hub. “

Regarding youth development, Egube said: “Considering the demographics of Lagos, investments in Technology, Eight Stadiums, Agriculture, Entertainment and Tourism are largely focused on the development and engagement of our youth.

“We believe Lagos has one of the most innovative youth populations in Africa, which we intend to continue to cultivate.”

The commissioner noted that there was a difference between the total size of the budget presented by the executive and the final size adopted by the legislature, adding that the difference was largely explained by the decision taken at the bilateral meeting. with MDAs to further accelerate already existing projects. to bring them to a substantial shutdown.

He listed some of the projects under the entrepreneur funded programs, including: a 24 km red rail line from Agbado to Oyingbo (phase 1) comprising 10 bridges / overpasses, 13 pedestrian bridges and eight stations, while the 13 km blue rail line from mile 2 to Marina with sea crossing (phase 1), the 20 km Lagos-Badagry highway to Okokomaiko, both projects estimated at 153 billion naira for completion of the first phase.

Others include the construction of widened drainage, rehabilitation, maintenance program, canalization of waterways among other infrastructure projects.

The Information and Strategy Commissioner, Gbenga Omotoso, was present at the briefing; Commissioner for Transport, Dr Fredric Oladeinde; Education Commissioner, Folashade Adefisayo; Energy and Mineral Resources Commissioner, Lere Odusote; and special adviser to the governor on works and infrastructure, Ing. Aramid Adeyoye, among others.