Lagos state has capability for N20 trillion debt- Sanwo-Olu 

The Governor of Lagos state, Mr. Babajide Sanwo-Olu has allayed the fears of residents of the state who complain concerning the state’s excessive debt stating that Lagos has the capability for a debt burden of N20 trillion.

He made this identified throughout a media chat with newsmen at this time as a part of efforts to transient residents on the coverage actions of the state amidst the excessive value of residing disaster being witnessed.

When requested concerning the state’s excessive debt which tops the state’s 2024 price range and efforts to cut back it, the Governor stated the necessary truth is sustainability noting that money owed are usually not dangerous however future funding.

He referenced the rail initiatives embarked upon by the state which was funded by debt stating that with out the federal government taking the chance, the advantages would have eluded Lagosians and Nigerians typically.

He stated,

• “I by no means get afraid of what borrowing is. The query across the debt burden is what’s your sustainability and what traces of funding are you placing these burdens to?”
• “So the problem round this N2 trillion is only a quantity. Certainly, the capability of Lagos, we must be doing N20 trillion. Within the final price range, after we pulled all of our numbers collectively, my folks have been saying to me that they needed a price range of N6 trillion, however we may solely do N2 trillion. That goes to point out you the energy and capability that the state has.”
• “We have to double our civil service, we’d like to have the ability to construct all these roads that we’re speaking about. So we shouldn’t be afraid of these numbers.”

What it’s best to know

For the yr 2024, the Lagos state authorities had a price range of N2.267 trillion which N952.43 billion represented recurrent expenditure. The determine will cater for personnel value, overhead value and recurrent debt service.

As of the third quarter of 2023, Lagos state had a home debt burden of N960.50 billion whereas its exterior debt was $1.26 billion as of Q2 2023.

This made it the very best amongst all sub-nationals within the nation in each home and exterior debt.