SWITZERLAND, MAY 21 – Despite the downturn occasioned by the COVID-19 pandemic, Lagos State has recorded an increase of 101 percent in its revenue for the first quarter(Q1) of 2020, compared to the same period in 2019.
The recently released financials for Q1 2020 reveals an actual revenue for the quarter of ₦282.6 billion, a figure 101% higher than the actual revenue of 2019 which stood at ₦140.7 billion and 6% higher than the budget for 2020 which stood at ₦267.8 billion.
The revenue for the quarter consists of ₦100.3 billion on internally generated revenue, ₦141 billion on capital receipts, and ₦41.2 from federal transfers.
This information was revealed in an interview with Sam Egube, Lagos State Commissioner for Economic Planning and Budget, published by business media outfit, Nairametrics on Thursday.
It was also revealed that capital expenditure for the quarter was N72.1 billion, 11% higher than the actual of 2019 which stood at ₦65 billion and 54% less than the budget for 2020 which was set at ₦177.8 billion – a deficit attributed to economic changes resulting from the Covid-19 pandemic.
Meanwhile, the Lagos State Executive Council has approved a downward revision of the state’s budget by 21% owing to the economic pressures occasioned by the Coronavirus (COVID-19) pandemic.
The state Commissioner for Economic Planning and Budget, Mr. Sam Egube, revealed this at a press briefing on Thursday in Lagos. He mentioned that the new figures would be presented to the House of Assembly for approval.
Egube said that the budget would be revised to N920.5 billion against N1,168.6 trillion, hitherto approved by the State House of Assembly.
Highlighting the breakdown of the revised budget, he said “The total budget size is reduced by 21 per cent from N1,168.6 trillion to N920.5 billion with the financing deficit increasing slightly by 11 per cent from N97.5 billion to N108.1 billion.
“Recurrent expenditure (Debt and Non-Debt) declined by 10 per cent from the initial N457.5 billion to N411.61 billion and total capital expenditure reduced by 28 per cent from N711.033 billion to N508.9 billion.
“The revised total revenue represents a drop of 24 per cent from the projected N1,107.03 billion to N812.5 billion,” he said.
The commissioner mentioned that factors such as include a fall in crude oil prices with damaging effects on statutory allocation expectations, downward pressure of IGR, and devaluation of the Naira incited the review of the 2020 budget.
He added that reduced public and private investment, increased inflation, a decline in demand for goods and services, and a reduction in manufacturing activities presaged increased unemployment and lower GDP growth
Egube said that part of the state’s holistic approach to COVID-19 shock already adopted by the state government included maintaining a strong pandemic response, restarting the state economy, and re-imagining the way of the state’s operations.
“To restart the economy, we are going to optimise the state’s budget for investments in jobs and priority sectors through jobs creation, economic stabilisation, and fiscal consolidation.
“While to re-imagine the state economy, we will prepare the state to operate and thrive within the new reality with digitisation, business environment reforms, and economic diversification,” he added.