Lagos State unveils N2.24trn budget for 2024 with focus on capital projects

The Lagos state government has presented a N2.24 trillion budget for the 2024 fiscal year to the Lagos state House of Assembly for consideration and approval. The budget, which is titled “Budget of Renewal,” was presented to the legislature by Governor Babajide Sanwo-Olu.

The governor stated that the budget of N2.24 trillion is divided between capital expenditure of N1.22 trillion (54.4 percent of the total budget) and recurrent expenditure of N1.02 trillion (45.6 percent of the total budget). The recurrent expenditure includes costs related to personnel, overhead costs, and recurrent debt service.

According to the governor, the projected revenue for the state in 2024 is N1.847 trillion, which includes internally generated revenue (IGR) and allocation from the federal government. The state’s IGR is projected to total N1.251 trillion in 2024, while its allocation from the Federation Account Allocation Committee (FAAC) is projected to total N596.62 billion.

Governor Sanwo-Olu noted that the state is committed to diversifying its revenue sources and increasing its IGR through initiatives such as the ongoing automation of revenue collection processes and the ongoing reforms in the state’s tax system.

The governor also stressed that the year 2023 was challenging for both Lagos state and the country as a whole due to inflation and the cost-of-living crisis. Despite these challenges, he pointed out that there are opportunities for Lagos to leverage its unique position as a global city to weather the storm and come out stronger.

He highlighted the achievements of his administration in various sectors, including infrastructure, healthcare, education, and transportation. He emphasized the importance of investing in these areas to create a more livable and productive environment for residents of the state. He also noted the administration’s focus on transparency and accountability in the use of public funds.

The governor explained that the state’s budget of N1.326 trillion for 2023 has been implemented at a rate of 78 per cent so far, with capital expenditure being the best performing component at 80 percent.  He further stated that the state has been collaborating with the federal government on transportation and poverty alleviation initiatives in order to mitigate the effects of the removal of fuel subsidies on Lagos residents.

The transportation initiatives include the completion of key infrastructure projects, such as the Blue Line rail project, which will provide an alternative mode of transportation for Lagos residents. The poverty alleviation initiatives include the provision of basic services and support to vulnerable communities.