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2024: Lagos to widen tax net; invest N550.689bn on infrastructure

The Lagos State government has said it will invest N550.689 billion to develop and maintain its infrastructure in 2024.

The Commissioner of Economic Planning and Budget, Ope George, stated this at the State’s 2024 Budget analysis at the Bagauda Kaltho Press Centre in Alausa, Ikeja.

He said N550.689bn on infrastructure, representing 24.28% of the entire Budget, is part of the ₦1.315trn capital budget for the year.

While highlighting some of the infrastructure targeting with the Budget, he said there will be the continuation of ongoing transportation projects, such as the expansion of the rail network, road construction, and Completion of the Blue/Red Line and other metro projects within the State.

Mr George said the Budget would also address the development of affordable housing schemes and urban renewal projects in addressing the housing deficit in the State by injecting a total of N55.924bn, representing 2.5% of the entire Budget. Some of the social housing projects include the Completion of 444 units of building Projects at Sangotedo Phase ll, the Completion of 420 units of building Projects at Ajara, Badagry Phase ll Construction of 136 units of building Projects at Ibeshe ll, among others.

He said there would be a focus on some “Special Projects: Continuous progress on major infrastructure projects like the Lekki-Epe International Airport, the Omu Creek, Blue and Redline, etc. It should be noted that most of these projects will be prioritized.”

Meanwhile, the 2024 budget, according to the Commissioner, intends to complete the front-loaded and ongoing infrastructure (e.g. Massey, Omu Creek, Opebi-Mende Link Bridge, Stadia, SCRPS, Lekki-Epe, Lagos Badagry Express, etc.) and commence the awaiting 4th Mainland Bridge that will connect Ikorodu to the Island.

Ope George added, ”The State’s commitment and continuous support to agriculture will include increased funding for projects and programmes, comprehensive training programs, and incentives tailored for farmers. Simultaneously, ongoing aid for Micro, Small, and Medium Enterprises (MSMEs) remains a priority to stimulate economic growth and foster job creation.”

The Commissioner added, “The State’s 5-year Agric roadmap stands as a testament to this commitment aiming to bolster support for farmers and enhance our overall food systems. This initiative prompted the State to allocate N44.33 bn towards Central Food Security, fostering projects such as the Cattle Feedlot Project, Fish Processing Hub programs, and Wholesale Produce Hub & Market. These endeavours aim to elevate food quality, reduce prices, and optimize the Agricultural sector in the long run.”

To boost Human Capital Development through Education and Healthcare, which is of deep interest to the State due to the administration’s belief that a healthy, skilled, and safe population can only convert the opportunities in the State into value. The State has allocated 13.35% of the total Budget to personnel costs in Y2024, an increase of 33% compared to Y2023. The N180.693Bn in the Education Sector will allow continuous Investment in educational infrastructure, digital skills initiatives, and vocational education, thus enhancing learning opportunities for every child in the State.”

Meanwhile, Mr George said that the total budget size of ₦2.267trn would be funded from an incremental revenue estimate of ₦1.880trn, comprised of Internally Generated Revenue (IGR): 1.189trn, Capital Receipts 94.605bn and Federal Transfer 596.629bn adding that LIRS is expected to contribute 63% (N750bn) of the projected TIGR, while about 23% (N283.567bn) is expected to be generated by other MDAs of government. We shall achieve this by deepening the revenue and increasing the tax net by deploying technology, economic intelligence, data gathering and analysis, amongst other initiatives.

He said that “there are huge revenue-generating opportunities in the informal sector, including real estate, transportation, and trade, adding that the deficit of ₦387.125bn is projected to be funded by a combination of Internal, External Loans and Bond Issuance.”

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