Lagos State Government may not borrow to finance its ₦3.367 trillion budget for 2025, according to the state's Commissioner for Economic Planning and Budget, Mr. Ope George, and Commissioner for Finance, Abayomi Oluyomi.
Speaking at a Press Briefing on the Budget analysis in Alausa, Ikeja, the duo noted that Instead, the government plans to generate more revenue to cover the budget deficit.
Mr. George hinted that the 2025 budget, tagged "Budget of Sustainability," is broken down into:
Recurrent Expenditure*: ₦1.296 trillion (38% of the total budget) Capital Expenditure: ₦2.071 trillion (62% of the total budget).
According to him, government aims to fund the budget through:Internally Generated Revenue (IGR) of ₦2.230 trillion, Capital Receipts: ₦111.839 billion and Federal Transfer: ₦626.137 billion.
The Lagos Internal Revenue Service (LIRS) is expected to contribute 63% (₦1.4 trillion) of the projected IGR while the government plans to increase revenue through technology, economic intelligence, and data analysis.
Key infrastructure projects include: Road construction: Samuel Ekundayo/Toga Road, Badagry; Abaranje Road, Alimosho; Adamo-Akanun-Agunfoye Lugbusi Roads, Ikorodu
Transportation project include: Completion of Abule Egba and Ajah Bus Terminals; construction of Iyana-Ipaja Bus Terminals
while also providing Housing Units across IBILE; completion of 444 units of building Projects at Sangotedo Phase II.
The Commissioner urged Lagos Residents to keep supporting the Sanwo-Olu administration by upholding the law, ensure prompt payment of taxes, for the Greater Lagos Vision to be achieved as the optimal execution of the year 2025 Budget relies heavily on the revenue generated within the State.
On his part, Commissioner for Finance, Mr. Abayomi Oluyomi while answering questions from Journalists at the event, allays the fears about debt management and financing, saying eighty per cent of the budget financing is from Internally Generated Revenue, with just ten per cent borrowing, while also exploring other avenues like creative financing options and catalyzing the business environment.
The "Budget of Sustainability" focuses on five key pillars: infrastructure and environmental sustainability, economic diversification, social inclusion and human capital development, governance, and institutional reforms.
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