A photo of a cashier counting money
The Lagos State Government says it has recovered 1.2 billion naira in excess bank charge over the period of six years and generated 127 billion naira Internally Generated Revenue in the first quarter of the year 2021.
The Commissioner for Finance, Mister Rabiu Olowo made this known at the state ministerial briefing ahead of Governor Babajide Sanwo-Olu’s two years anniversary.
Mr. Olowo says the year 2020 ended with 88 percent budget performance, with a capital recurrent expenditure of 56:44%.
The expenditure performance for the first quarter of the year 2021 stands at 69% with a Capital Expenditure Ratio of 42:58%.
To achieve efficiency and reduced Cost of Fund, the commissioner also says the State successfully re-negotiated its existing debt obligation from 19% to 14% and further down to 12% which brought about N8.9bn savings.
Mr. Rabiu Olowo added that the state is working towards a year-on-year minimum increase of 25-30% of the IGR base.
Read Full Statement Below:
Address delivered by Dr. Rabiu Olowo, Hon.Commissioner For Finance, Lagos State At The Ministerial Press Briefing Marking The Second Anniversary Of Mr. Babajide Sanwo-Olu Held On THURSDAY 20th May 2021 At Adeyemi Bero Alausa.
1.0. THE LAGOS STATE MINISTRY OF FINANCE & ITS RESPONSIBILITIES
The Ministry of Finance is a unique sector that falls under one of the pillars of T.H.E.M.E.S i.e. “Governance, Security & Finance” which provides the financial backbone that helps government translate its vision of providing the dividends of democracy to the teaming population of Lagos state.
Accomplishing our assigned ministerial responsibilities entails the provision of an enabling financial policy framework that had and will always assist the State Government and her Ministries, Departments and Agencies (MDAs) in translating the sustained cravings of our people for good governance, economic development and prosperity into reality.
The details of the assigned ministerial mandates include:
Formulation, Coordination and Implementation of Lagos State Government Financial Policy and Regulations;
Monitoring of all the State Revenue Sources;
Ensuring Budget Discipline (balancing public expenditures, with State Resources, organizing its control);
Determining the funding priorities of the State;
Formulation of Accounting Policies and Maintenance of Accounting Standards;
Revenue Accounting and Treasury Operations;
Preparation and rendering of final Accounts and laying them before the Public Accounts Committee of the State House of Assembly;
Inspectorate and Compliance;
Public Debt Management (Loans Policy, Internal & External borrowings, Outstanding Debts Management);
Coordination of Insurance matters of the State;
Coordination of Investment in the State
Regulation of Overseas Travel Payment Matters;
Supervision of the following State-owned Parastatals:
These enormous responsibilities are supervised and coordinated as a team under the overall political leadership of my humble self as the Hon. Commissioner for Finance, and by the three (3) Permanent Secretaries who effectively oversee the administration of the constituent arms listed below:
Ministry of Finance (HQ)
Debt Management Office; and
State Treasury Office.
As a matter of fact, the avowed commitment of Mr Governor a continuing with the enhancement of the standard of living of the good citizens of Lagos through the enthronement of all-embracing good governance strategies spurred the Ministry of finance into ensuring that all MDAs are adequately funded within available resources to implement the State Government’s people-oriented programs.
Our involvement as a Ministry in the team of an administration noted for its well-meaning modest achievements is this scorecard that I am today presenting, through your esteemed selves, to the members of the public for their appreciation.
We are a Ministry that is an integral part of an attentive and promise-fulfilling Government that has and will continue to deliver tangible dividends of democracy in spite of the limited available resources. Our corps of loyal, dedicated, dutiful, diligent and loyal staff in the three (3) constituent-arms earlier recognized above will continue to give unalloyed support to this administration, which has continued to be a reference and pathfinder to other states of the federation.
2.0. THE DYNAMICS OF LAGOS STATE REVENUE
The Lagos State financing strategy by design is anchored on sustainable internally generated revenue model. This was steadfastly pursued and sustained during this reporting year as the State recorded impressive and improved revenue growth despite the Covid19 challenges.
Efforts will not be spared to encourage and ensure that other revenue-generating agencies of Government perform at their optimum so that all the ongoing projects of Government can be successfully prosecuted and completed as far as possible. The State Government shall continually focus more on Internally Generated Revenue (IGR) by consolidating on our taxation sources as earlier noted.
I, therefore, wish to use this opportunity to implore the hitherto unwilling members of the public to turn over a new leaf and willingly perform their civic responsibilities by paying their taxes promptly. I also encourage those that had been paying voluntarily not to relent in their support to Government in its determination to transform the State. At the end of the ongoing sensitization exercise, the Government will not hesitate to prosecute tax offenders in line with the extant laws governing the payment of taxes in the State.
As the Honourable Commissioner for Finance in Lagos State, the 5th largest economy in Africa and 7th largest Economy in the world, I will like to commend the leadership role and support of Mr Governor, Deputy Governor and also my dedicated colleagues in ensuring that the focus of this administration is constantly geared towards achieving the delivery of a better Lagos through the T.H.E.M.E.S Agenda.
The Ministry of Finance under my leadership has experienced several transformations, innovations and process reviews. These result-oriented initiatives have resulted in several process changes, increased IGR and staff development.
I, therefore with a sense of humility and accomplishment seek your attention while I reel out some of our achievements in the last year of the 2nd year in office of Mr. Governor, Mr. Babajide Olusola Sanwo-Olu.
The Office also advocates a high standard of public services through proactive quality culture in building economic progress and development, founded on empowered and skilled professionals.
The Audited Financial Statements of Lagos State Government for the year ended 31st December 2020 was signed and duly published on the website in line with Lagos State Public Finance Management Law, 2011.
The State Auditor-General, Mrs. Helen Deile, and the Permanent Secretary/Accountant-General, Dr. Abiodun Muritala during the signing of Y2020 Audited Financial Statements for the year ended 31st December 2020.
Lagos State has recovered in excess of N1.2b in excess bank charge over the period of 6years. We are in the process of Recovering Ground rent owed by defunct NEPA through NELMCO and this is at 75% completion. Lagos State Government has also submitted projects to Natural Resource Development Fund for Federal Government Funding which is almost at a completed stage.
Government despite the adverse effect of the Corona Virus (Covid-19) Pandemic. The Ministry of Finance as part of its ministerial responsibilities provides various financial strategies to enable the State Government to deliver high-impact infrastructural projects envisaged in the Budget. It is pertinent to mention that the State Government achieved 88% Budget performance in Y2020. With all modesty, this level of performance is unparalleled by any Government in the country, be it State or Federal.
In the same vein and in line with the vision to deliver infrastructure at various levels, the ratio of Capital Recurrent Expenditure for the Year 2020 stood at 56:44%. The approach for the Year 2021 would not be any different, as the Government has commenced funding of the N1.164trn Budget for the year with fresh vigor. The expenditure performance in the first quarter of Y2021 was 69% with a Capital Expenditure Ratio of 42:58%.
In order to ultimately reduce payroll fraud, about 95% of Public Servants and Pensioners’ Datahavebeen linked to the payroll with the support of Lagos State Residents Registration Agency (LASRRA).Auto-termination of salary payment for retired staff, Prompt salary Payment
The Revenue Codes for MDAs and Local Government Areas have been uploaded onLASGwebsite, to enable ease of payments by organizations, MDAs, and individuals towards strengthening the collection of internally generated Revenue (IGR) in the State.
The Lagos State Treasury Office ensured the prompt release of funds for payment of essential services to combat the Corona Virus (COVID-19) Pandemic in Lagos State.
The Implementation of payment of 10%Contributory Pension Scheme by the Lagos State Government and 8% deductions from salaries of Public Servants respectively.
The Office successfully hosted a 2-Days Sensitization and Advocacy program data Gathering and management by Revenue Mobilization and Fiscal Allocation Commission (RMFAC) team.
HC Finance, Dr. Rabiu Olowo, PS/AG, Dr. Abiodun Muritala with RMFAC Team during the 2-Day Sensitization and Advocacy Programme on Data Gathering and Management.
The Lagos State Governor, Mr. BabajideOlusolaSanwo-Olu through the Lagos State Treasury office ensures prompt and adequate payment of all employees’ salaries (Active Local Government and SUBEB) on or before the 23rd day of every month.
The Office trained over 1,000 Finance and Account Officers Statewide to acquaint the Officers on the provisions of the Year 2020 Finance Act.
Implementation of the approval of Mr. Governor on the release of fund for payment of Public Servants -Retirees benefits as at when due.
The meeting of the Lagos State Treasury Office, Lagos Internal Revenue Services, and Alpha Beta Consulting Limited on reconciliation of Revenue figures has adequately ensured the generation of a comprehensive and reliable revenue figure acceptable to all revenue stakeholders in the State.
The preparation and Audit of COVID-19Financials for the 3rd and 4th Quarter of the Years ongoing aspartofSFTAS the Disbursement Index Indicator (DLI), which will invariably ensure transparency and accountability.
The Lagos State Treasury Office is meeting all its financial obligations through debt servicing payment of outstanding liabilities and mobilization of funds to Contractors to ensure efficient and effective infrastructural development.
Gentlemen and Ladies of the Press, you would recall that last year, I stated that the Ministry of Finance under the leadership of Mr Governor and the Deputy Governor would Re-launch the Land Use Charge Reforms.
The 2020 Land Use Charge was quite a huge success and well embraced by property owners. The Ministry conducted a survey and received various positive testimonials also from property owners who visited our Call Centres across the State.
The seamless & success of Land Use Charge operations has attracted about three (3) States visiting the Ministry to understudy the 2020 Land Use Charge Reforms. Such as: FCT-Abuja, Cross River & Kwara States Internal Revenue Service.
F.O.R.C.E: You would also recall that F.O.R.C.E(Focus On Revenue Creation every day was launched last year with the objective to monitor and drive revenue performance periodically for all revenue generating Agencies.
Establishment of 10 Walk-In Contact Centres within the LIRS Tax Stations across the State for easy access for enquiries on Land Use charges.
The Ministry successfully hosted members of Revenue Mobilization and Fiscal Allocation Commission (RMFAC) who came on physical verification of projects that require strategic developmental financing.
Commissioner for Finance, Dr Rabiu Olowo and the Permanent Secretary,(Finance) during the hosting of members of Revenue Mobilzation &Fiscal Allocation Commission(RMFAC) for verification of Lagos State developmental projects.
Presentation of cheques of the total sum of N454,888,253.36(Four Hundred and Fifty-Four Million, Eight Hundred & Eighty-Eight Thousand Two Hundred Fifty-Three Naira, Thirty –Six Kobo to the beneficiaries of Deceased Civil-Servants from March 2017-August 2019.
The Permanent Secretary, Mrs. Yemi Ayoola presenting the cheque to one of the beneficiaries of the deceased civil servants.
Processing and payment of First Half Year 2021/2022 Insurance Premium for the Global Insurance Policies Account.
The negative impact of assets and collateral damage of the hijacked EndSars protest was curbed. Lagos State Government is making efforts to recover claims for all loss of properties suffered during the protest.
Collation of relevant data on Motor Vehicles, Properties and Human Capital for renewal premium computation towards the commencement of the new Insurance Year.
The Permanent Secretary, (Ministry of Finance) Mrs. Yemi Ayoola handing over LUC Operational documents to the Head of Operations, Kwara State Internal Revenue Services.
RAISED FINANCING FOR REDLINE AND COMPLETION OF THE BLUE RAIL PROJECT.
The special borrowing programme was divided into 3 broad segments:
N60b for blue line rail project, this is to accelerate development in the Transport sector
N93b for the Red Line rail project, a 37 Kilometer railroad that runs from Marina to Agbado. This will create over 6,000 direct and indirect jobs for Lagosians
SAVINGS ON LOAN REPAYMENTS
To achieve efficiency and reduced Cost of Fund, the State successfully negotiated its existing debt obligation from 19% to 14% and further down to 12%. This brought about N8.9b savings
LAGOS REDEEMS N46.3BN AND N6.9BN BOND
Lagos State Government recalls the N46.3Bn and N6.9BN Bond under the (Programme 2 Series 2). The Bond was issued in 2017and has a coupon rate of 16.75% and 15.60% and has a tenor of 7-10 years. The early redemption is expected to immediately reduce the State’s total debt obligation and the average cost of debt service. The State hopes to issue a deeper Bond for replacement.
LAGOS 100BN PROGRAMME 3 SERIES 3 BOND LISTED ON THE NIGERIAN STOCK EXCHANGE
The Nigerian Stock Exchange has listed in February 2021, the Lagos State Programme 3 Series 3 N100Bn Bond that was issued in January 2020 amongst other Bond listings. The benefits include giving greater visibility to the State accountability and ensures transparency, as well as increased the Bond holders’ Confidence. The Bond listing will enhance the state’s ratings alert investors to value Bond.
LAGOS RETAINS B+ RATINGS WITH POSITIVE OUTLOOK
FITCH ratings maintain Lagos State ratings at B+ (positive outlook) after its review exercise while GCR & AUGUSTO has accorded the State at A+ (stable outlook)*All the State’s Bond instruments were rated at AA+
INVESTMENT AND PARTNERSHIPS: IMPROVED INVESTMENT AND PARTNERSHIP TO DRIVE INFRASTRUCTURAL GROWTH
Ibile Holding Limited:
Lagos Taxis Scheme and Motor Vehicle Assembly Plant arrangement with CIG Nigeria Limited
Partnership with Ministry of Health on Medical Diagnostic and Service Provision to commercialize diagnostic and other health services in conjunction with private-sector health service providers ongoing
Partnership with Ministry of Science & Tech and Ministry of Wealth Creation to set up an ICT Park in Yaba over 22,000 sq. metres in Yaba Industrial Area.
Equity investment of N500 million in the operation of Primero. IBILE representing LASG in the equity investment
Joint venture arrangement to build a multi-storey carpark with cinema hall, offices, lounge and other multi-use spaces completed.
Joint venture arrangement. To complement Oshodi Transport Interchange Ongoing and at 35-40% stage.
Development of a well-maintained pharmacy at Alimosho General Hospital to improve Healthcare delivery and reduce avoidable mortality
Equipping, Operation, and Maintenance of Diagnosis facility in LASUTH
Upgrading of laboratory services at the General Hospital Ikorodu
Equipping Maternity and Child Centre, Eti-Osa with X-ray machines, ultrasound machines, Laboratory, Radiology and Pharmaceutical Services.
The Ministry of Finance will sustain the momentum to improve the Finances of Lagos for the next 2 years:
Embed and grow the LIRS e-tax portal to enhance the integration of taxpayers database and revenue collection within 90 days
Arrange and optimally structure100% funding of the budget deficit
Deliver by 2021 a sustainable financial strategy for the ten-year infrastructure funding plan.
Target a year-on-year minimum increase of 25-30% of the IGR base
Deepen tax net by mapping the informal sector clusters & bring in a minimum of 1million additional taxpayers on an annual basis operationalize the fiscalisation of Hotel Occupancy & Restaurant Consumption (HORC) Tax within 360 days
I must reiterate the fact that all these achievements mentioned would not have been possible without the impeccable support from The Permanent Secretary Ministry of Finance, The Permanent Secretary/Accountant General of Lagos State, The Permanent Secretary Debt Management Office, Our Directors and our Staff.
I also express our profound gratitude to the members of the Fourth Estate of the Realm for the constructive and unbiased reportage on activities of the Ministry.
Ladies and gentlemen, thank you for being a part of this special day. We are grateful to you for taking your time out from your busy schedules and to help us in making our 2n-year anniversary memorable.
Thank You for listening. IgbegaIpinleEko! Ajumose Gbogbo wa ni .
Lagos State Hon. Commissioner for Finance