Lagos records revenue surge despite recession

Eniola Ajayi, Lagos

The Internally Generated Revenue (IGR) of Nigeria’s former capital- Lagos, has shown a significant increase in the last one year despite the nation’s economic recession which experts recently say the country has come out of.

Specifically, Lagos recorded an increase of N36.946 billion revenue performance compared with the year 2015.

The State’s Commissioner for Finance, Mr Akinyemi Ashade gave this hint while giving a brief on the activities of the Ministry in the last one year.

According to Mr Ashade, a total revenue of N436.328 Billion was realized in the year 2016 compared to N399.382 Billion in 2015.

He stressed that in the year under review, the existing strategic financial management framework of the State’s resources was steadfastly sustained which resulted in steady improvement of the State’s revenue.

“Total Internally Generated Revenue (IGR) for the year 2016 was N312.820 Billion which represents 75% of the projection and 72% of Total Revenue, compared with N247.946 Billion representing 80% of the projection and 69% of Total Revenue for year 2015, we were able to achieve this feat because of the strategic reforms introduced in the area of revenue collections ,” Mr Ashade said.

The Commissioner highlighted “the introduction of electronic Submission of Annual Returns includes; activation of 1% statutory incentive for voluntary compliance and self assessment in line with (Section 45 of Personal Income Tax Act), creation of customer care desks in all 38 tax stations of the agency and the introduction of a dedicated customer care line and revision of Tax Form A: the tax form was redesigned from a 6-page modular form to a 2-page form with three language options (Yoruba, English and Pidgin).”

Fitch rating for Lagos

He also expressed satisfaction with the recent ‘AA+’ rating of the state by Fitch as he noted that the recent declaration of the World Economics that Nigeria’s economy had come out of recession.

“We are happy to receive the news from the United Kingdom based, World Economics that the Nigerian economy is growing out of recession; while the State Government is pursuing the N500 Billion Bond Programmes, it has continued to ensure a strong and healthy debt sustainability regime leading to Improved Local and International ratings for the State and its Debt Instruments, in February, 2017 Fitch Ratings (An International Ratings Agency) affirmed the Long-Term National Rating at “AA+” (a ng) with a stable Outlook,” Mr Ashade added.

Debt servicing

The Finance Commissioner affirmed that on the average, less than three percent of the state’s IGR was being used to service debt saying that the state’s sinking fund remained negligible.

“The commitment of the State Government to its debt obligation as and when due was further demonstrated with the redemption of the N57.5 billion bond (Series 2) 2010 /2017, which matured on the 19th April 2017, this marks the maturity of the Series 2 Programme 1 Bond; however, the N 80 Billion, N 87 Billion and   N47 Billion will be redeemed in November 2019, November 2020 and December 2023 respectively, the State has accumulated over N103. 415 Billion in our Sinking Fund Accounts managed by Independent Trustees for the redemption of the outstanding Bonds,” he added.

 

Omolayo.A