Governor of Lagos State, Babajide Sanwo-Olu has disclosed that the outgoing year’s budget performed remarkably well despite the challenges encountered by Lagos State as the expenditure performance at the third quarter of 2021 rose to 80%.
Sanwo-Olu made the disclosure during the presentation of the year 2022 to the State House of Assembly last week.
He said the need to stabilise the State’s economy led to the adoption of far-reaching cost saving measures, including restructuring of local borrowings to reduce overall debt service obligations on Lagos.
“The state government has successfully restructured all existing loan facilities,translating into reduction in interest rates from an average of 18% to about 12.5%. This year, Fitch, a reputable international rating agency, upgraded the rating of Lagos from AA+ to AAA, reflecting Lagos capacity to service its financial obligations, compared with national and international peers, as well as its resilient operating performance during the pandemic,” the governor said.
Thanking people of Lagos for supporting and standing by his government in the past two years, Sanwo-Olu reminded the people that “there were more challenges lying ahead. He urged Lagosians to join hands with him in delivering his programmes for common good assuring that the pace of governance would be amplified in the coming years.
In the meantime, infrastructure and education top Lagos’ priorities next year, as Governor Sanwo-Olu presented a N1.388 trillion 2022 project to the State House of Assembly. According to the governor, Lagos would be spending N325 billion to deliver vital infrastructure projects in key sectors to energise and expand the growth of the state.
The key areas of growth identified by the governor include Works and Infrastructure, Waterfront Infrastructure Development, Agriculture, Energy and Mineral Resources, Transportation, Tourism, Entertainment and Creative Industry, Commerce and Industry, Wealth Creation and Employment.
Governor Sanwo-Olu said next year presented an opportunity for the State Government to consolidate on the progress recorded by his administration, while leveraging investment in-flow, partnership and business-friendly policies to maximally translate his achievements into noticeable positive impact in the lives of residents.
About N823.4 billion, representing 59% of the 2022 budget, is earmarked for capital expenditure. Recurrent expenditure, representing 41%, is N565 billion, which includes personnel cost, overhead and debt services.The financial proposal christened “Budget of Consolidation”, would be the last full year fiscal plan of the state before the next general elections in 2023.
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