Lagos May Not Borrow To Finance N3.367trn 2025 Budget, Say Commissioners

Despite its huge budget size for 2025, Lagos State government on Friday said it may not borrow to finance its ₦3.367trillion budget for 2025.

This was revealed by the state’scommissioner for Economic Planning and Budget, Mr Ope George and the commissioner for Finance, Abayomi Oluyomi, at a press briefing held at the Bagauda Khalto Press Centre, Alausa Ikeja, to analyse the 2025 budget.

The duo, flanked by the other members of the state executive council, emphasized that the state government has put strategic plans in place to generate more money to take care of her budget deficit.
Giving a breakdown of the N3.366trn of the 2025 budget, which according to the commissioner, will be funded from a total revenue estimate of N2.968trn, comprising Internally Generated Revenue (IGR): N2.230trn, Capital Receipts N111.839bn and Federal Transfer N626.137bn.

The target revenue of N2.968 trillion represents a monthly revenue target of 247.331 billion.
George explained LIRS is expected to contribute 63 percent (N1.4trn) of the projected IGR, while other MDAs of Government will generate about 37 percent (N830.177bn).

According to him, the target will be achieved by deepening revenue and increasing the tax net through the deployment of technology, economic intelligence, data gathering and analysis, among other initiatives.

George said, “We believe that there are huge revenue generating opportunities in the informal sector, tourism, real estate, transportation, and trade.

“The deficit of ₦398.662bn is projected to be funded by internal, external loans, bond issuance and others.”

According to the commissioner, the deficit funding sources provision are external loan 28.751bn, internal loan 203.831bn, bond issuance 150.000bn and Others 16.080bn.

A total expenditure of ₦3.367 trillion is budgeted for 2025, broken down as follows: recurrent expenditure 1.296trn, capital expenditure 2.071trn capital to recurrent ratio = 62:38.

The component of the recurrent expenditure is as follows: total personnel costs 401.120bn, total overhead costs 799.511bn and debt charges 95bn.

The recurrent expenditure stood at 38 percent of the total budget size, out of which the personnel cost is N401.120bn representing 12 percent of the total recurrent expenditure.

The personnel cost in 2025 increased by N146.003bn compared to 2024. The increase is a reflection on the state’s commitment to implement the salary increment to cushion the effect of high inflation and the removal of fuel subsidy.

The sector allocations, are as tabulated below: “General Public Services N398,368,579,418 Public Order and Safety N91,472,518,204 Economic Affairs N162,467,077,787 Environment N75,842,862,616 Housing and Community Amenities N26,000,691,418, Health N173,847,292,450, Recreation, Culture and Religion N37,782,405,139, Education N166,310,716,148 and Social Protection N32,805,054,933.”