Lagos cuts 2020 budget by 21% — first time under N1trn in four years

The Lagos state government has announced plans to revise its budget downwards from N1.16 trillion to N920.5 billion to deal with the disruptions caused by the COVID-19 pandemic.

“The Lagos state government has embarked on a downward review of the year 2020 budget, precipitated by the negative economic and social effects of the coronavirus disease on the global economy,” Samuel Egube, the commissioner for economic planning and budget, said on Thursday.

“To restart the economy, we are going to optimise the state’s budget for investments in jobs and priority sectors through job creation, economic stabilisation and fiscal consolidation.

“In reimagining the state economy, we will prepare the state to operate and thrive within the new reality with digitisation, business environment reforms, improved economy and diversification of revenue sources.”

Providing details of revision, Egube said the budget deficit has increased by 11 percent from N97.533 billion to N108.005 billion.

“The recurrent expenditure (debt and non-debit) in the revised budget will decline by 10 percent from N457.529 billion to N411.608 billion, 28% reduction has been proposed for total capital expenditure from N711.033 billion to N508.861 billion.

“The revised total revenue represents a drop of 24% in the previous projections from N1,107.029 billion to N812.46 billion.”

He said the government will target construction, drainage and LAWMA (Lagos State Waste Management Agency) as sectors to help with job creation.

The last time the Lagos state government had a budget below N1 trillion was in 2017 when it had a total appropriation of N812.998 billion.

Featured image: Babajide Sanwo-Olu, Lagos state governor