Lagos State Government has itemized new plans to build more infrastructure in the state through improved funding and strategy.
The state has also approved the Issuance of N100 billion Series III Bond under its N500 billion Bond Issuance Programme. Lagos State Commissioner for Finance, Rabiu Olowo disclosed this while giving the scorecard of his Ministry at a Ministerial press briefing commemorating one year in office of Governor Babajide Sanwo-Olu at Alausa, Ikeja, the commissioner said the bond was issued on January 29.
Olowo explained that for effective corporate governance, efficient internal control measures, monitoring and reporting of Lagos State Debt Profile, the Debt Management Department has been re-instated as Debt Management Office, headed by a Permanent Secretary.
He said the state restructured all existing internal loan facilities which were previously at the rate of 18 to 20 per cent to 14 per cent which brought about large savings on the State’s loan repayments thereby increasing cash flows. Olowo said the State also completed a financing strategy to augment the deficit infrastructure financing in Lagos State. The value of the additional Syndicated Loan is N150 billion.
Olowo also rolled out strategies already deployed by the state government to keep its finances intact in spite of the devastating effects of the COVID-19 pandemic on the economy.
He said though the direct impact of the pandemic is a drop in the State’s Internally Generated Revenue and Federal Allocation, potential decline of Foreign Direct Investment (FDI) and increased pressure on income and purchasing power of Lagosians, the state government had in swift response re-ordered the fiscal year 2020 budget and re-prioritized its Capital Expenditure to reflect current realities.
The commissioner also revealed that “Lagos State achieved 106 per cent performance in first quarter of 2020 revenue as against budget. However, with COVID–19 pandemic and the dwindling Oil prices is a twin-shock to Nigeria, we expect that the Revenue numbers will be affected, hence the need to review the 2020 Budget assumptions.”
