- Generates N101.69bn in Q1 2016, records N4.85bn surplus
The Lagos State Government monday disclosed its plan to construct a monorail that would link Marina, Ikoyi and Lekki, stating that the project would cost $1billion.
The state government also said that it generated N101.69 billion in the first quarter of 2016, adding that contrary to a deficit of N29.92 billion initially projected by the government, it had a surplus of N4.85 billion during the period under review.
The Commissioner for Economic Planning and Budget, Mr. Akinyemi Ashade, made the disclosure at a ministerial news conference initiated to mark the first anniversary of the state governor, Mr. Akinwunmi Ambode.
Ashade addressed the press alongside his counterpart in the Ministry of Information & Strategy, Mr. Steve Ayorinde, and the Permanent Secretary in the Ministry of Economic Planning & Budget, Mr. Kadiri Abayomi Adebisi, among others.
At the briefing, Ashade said the Ambode administration had partnered the Japanese International Corporation Agency (JICA) “to invest in a possible monorail project that will link Marina to Oniru in Victoria Island, and Ikoyi”.
The commissioner, who put the cost of the monorail project at $1 billion, added that the project would be designed “to later connect to the Lekki rail project which is also in the works”.
He clarified that the monorail project “is an urban mass transportation project different from the ongoing Light Rail (Blue Line) project that will connect Mile 12 to CMS and the Light Rail (Red Line) project”.
He said a detailed feasibility study had been commissioned on the monorail project to validate the initial survey, which would eventually lead to an investment of $1 billion in the construction if the results of the feasibility study are positive, amongst other conditions that must be met.
Ashade explained that his ministry was coordinating and managing the state’s existing relationships with development partners, as well as identifying new potential ones to drive further development.
On the revenue generated by the state, Ashade said the N101.69 billion was above what the state government recorded in the first quarter of 2015, which stood at N97.28 billion, adding that in absolute terms, the revenue performance was N4.4 billion more than the comparative period of 2015.
Ashade said the remarkable feat was achieved despite the diminishing statutory allocation from the Federation Account and also gave credit to Governor Ambode.
He expressed optimism that with the implementation of multiple revenue collection channels and broadening of the revenue base, the state government would achieve tremendous progress in its revenue drive.
A breakdown of the revenue generated by the state showed that it raked in N76.06 billion as the internally generated revenue (IGR) in the first quarter, representing 72 per cent of the budgetary estimates for the quarter and 75 per cent of total revenue, as against the N67.21 billion generated in the first quarter of 2015, representing 74 per cent of budgetary estimates and 69 per cent of the total revenue in the corresponding period of last year.
He said revenue from the Lagos Internal Revenue Service (LIRS) for the first quarter of 2016 stood at N67.25 billion, representing 90 per cent of budgetary estimates for the quarter and 88 per cent of total IGR and 66.12 per cent of the total revenue, compared to N60.58 billion (87 per cent of the budgetary estimates for Q1 Y2015), representing 90 per cent of total IGR and 62 per cent of total revenue in the first quarter of 2015.
“This performance was N6.67 billion more in absolute terms compared to the corresponding period in Y2015 and was due largely to more participatory structural and systemic re-engineering.
“Over the course of the first quarter of Y2016, federal transfers contributed N25.64 billion (83 per cent of the estimate for the quarter) and accounted for 25.21 per cent of total revenue.
“A further breakdown showed that statutory allocations contributed N7.48 billion while VAT contributed N18.16 billion,” Ashade said.
On capital expenditure, the commissioner said the government expended N48.88 billion on capital projects, representing a 51 per cent improvement of N15.08bn (or 24 per cent) over the first quarter of 2015.
He also said that at the end of the first quarter of 2016, the ratio of capital expenditure to recurrent spending stood at 50:50, better than the ratio of 21:79 recorded in the same period in 2015, but short of 58:42 projected for 2016.