Lagos State government said yesterday that it had achieved an average monthly Internally Generated Revenue (IGR) of N34 billion in 2018, compared to monthly averages of the last three years.
Finance Commissioner Mr. Akinyemi Ashade, who disclosed this at the ongoing annual ministerial press briefing to mark the third anniversary of Governor Akinwunmi Ambode’s administration, held at Bagauda Kaltho Press Centre, Alausa, Ikeja, attributed the gradual improvement to the impact of the ongoing reforms and growth in the state’s economy.
He said: “Notably, we are recording gradual improvement in our average monthly IGR in 2018, compared to the levels achieved in previous years due to the impact of ongoing reforms and growth in the state’s economy. Based on our first quarter results, Lagos State has so far achieved an average monthly IGR of N34 billion in 2018 compared to monthly averages of N22b, N24b and N30b in 2015, 2016 and 2017.”
The commissioner said the IGR will continue to rise even further, as the state continues to implement the various reforms, driven by wider technology adoption and innovation, adding that the target to grow the state’s IGR to N50 billion by next year was well on course.
“The target we set for ourselves is N50 billion, but we all know the kind of push backs we have experienced, including people going to court and all that. Our commitment is not for now, its for the future of Lagos. We know it’s a marathon, we would win some and we would lose some, but we are very committed towards ensuring that we meet the target, but if we don’t meet it this year, definitely there will be another year, but we believe we will succeed in that target we set for ourselves,” Ashade said.
On federal transfers, he said since Lagos joined the league of oil producing states, the government had received a total of N327million revenue, comprising N197million and N130million received in 2017 and first quarter of 2018.
“Furthermore, we are in ongoing discussions with the Federal Government towards obtaining a refund for expenditure totalling N51billion that was incurred by the state government on behalf of the Federal Government for infrastructure projects developments in the state. We are optimistic of successful discussions that will result in the approval and payment of the amount owed to the state government by the Federal Government,” he said.
Giving an update on the state’s Debt Profile, the commissioner said the government’s debt stock, comprising 48 per cent local debt and 52 per cent foreign debt currently stood at N874.38billion at the end of 2017, while the debt service charge to total revenue ratio which stood at 17.61 per cent was still within the World Bank threshold of 30 per cent.
He said the government has continued to maintain a positive credit rating, however, adding that a downgrade of Nigeria’s sovereign rating would lead to a corresponding action on Lagos’ international drawing rights.
“As Nigeria continues to improve on its credit rating, we would be able to achieve better rating as we currently have because no amount of revenue generation, no amount of employment growth of Lagos State can make us surpass the sovereign rating,” Ashade said.
He said the government has taken strategic steps to help Nigeria improve on its ratings, including adhering to fiscal discipline, improved revenue generation, reforms in infrastructure development, transport and embedded power.
Giving an update on the revised Land Use Charge (LUC), Ashade said the government has continued to engage critical stakeholders in line with its tradition of inclusive governance, adding that a wide range of response have been received.
He said the extensive discussions led to several concessions on Land Use charge for property owners across board, adding that a revised bill to further amend the LUC Law to incorporate the additional concessions was presently before the House of Assembly and would be passed soon.
The commissioner said the government through the LUC Assessment Appeal Tribunal, received a total of 1,503 complaints, out of which 1,113 were successfully resolved administratively and through mediation, adding that an additional 263 property owners/agents had their grievances resolved in the last two weeks and more still ongoing.
