2024: LASG commits 24.28% of 2024 budget to infrastructure
….sets 58:42 Capital to Recurrent ratio for budget
….earmarks N550.689bn for infrastructure
By Moses Adeniyi
The Lagos State Government (LASG) will commit N550.689billion, 24.28 percent of the 2024 budget of the State to investment in infrastructure, NewsDirect has learnt.
Recall Governor Babajide Sanwo-Olu had earlier emphasized the necessity to invest in the State’s infrastructure, noting that the 2024 budget size of ₦2.267trillion is insufficient to address the infrastructure deficit in the State, which he valued to demand at least an investment of N7trn.
The Lagos State Commissioner of Economic Planning and Budget, Mr. Ope George disclosed that the State has earmarked a N550.689bn sum for infrastructure in 2024.
Speaking on Wednesday at the State 2024 Budget analysis at Ikeja, the State Capital, George said the sum of N550.689bn earmarked for Infrastructure which represents 24.28% of the entire budget, is part of the ₦1.315trn capital budget for the year.
While highlighting some of the infrastructure targeted 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.
George said the Budget will also address 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 2.5percent of the entire Budget.
Some of the social housing projects he highlighted include: Completion of 444 units of building Projects at Sangotedo Phase ll, 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 added that there will be focus on some “Special Projects: Continuous progress on major infrastructure projects like the Lekki-Epe International Airport, the Omu Creek, Blue and Red line etc.
“It should be noted that most of these projects will be prioritized,” he said.
Meanwhile, the 2024 budget according to the Commissioner, intends to complete the front-loaded and ongoing infrastructure, such as the Massey, Omu Creek, Opebi-Mende Link Bridge, Stadia, SCRPS, Lekki-Epe, Lagos Badagry Express, among others, and to commence the awaiting 4th Mainland Bridge that will connect Ikorodu to the Island.
George added that “The State’s commitment and continuous support to agriculture will include increased funding for projects and programmes, comprehensive training programmes, 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,” he said.
“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 a total sum of N44.33bn towards Central Food Security, fostering projects such as the Cattle Feedlot Project, Fish Processing Hub programmes, and Wholesale Produce Hub & Market. These endeavors aim to elevate food quality, reduce prices, and optimize the Agricultural sector in the long run,” he said.
Also, he noted that the State has allocated 13.35% of the total budget to personnel cost in Y2024, an increase of 33% compared to Y2023.
According to him, N180.693bn to be invested in 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, George said that the total budget size of ₦2.267trn will be funded from a total revenue estimate of ₦1.880trn, comprising 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 percent (N283.567bn) is expected to be generated by other Ministries, Departments and Agencies of government.
“We shall achieve this by deepening the revenue and increase the tax net through the deployment of technology, economic intelligence, data gathering and analysis amongst other initiatives,” he said.
He noted that “there are huge revenue generating opportunities in the informal sector, including real estates, transportation, and trade.”
According to him, the deficit of ₦387.125bn is projected to be funded by a combination of internal, external loans and bond issuance.
