Lagos State Remains Economically Strong and Stable Despite Crunch

Peter Uzoho
As most states in the country continue to grapple with the challenges of the economic hardship, Lagos State has maintained its economic and financial stability, growing its Gross Domestic Product (GDP) to 20 to 25 per cent of Nigeria’s, and is larger than that of many neighbouring countries within the region.

The Internally-Generated Revenue (IGR) of the state in 2015 amounted to N225 billion, representing 56 per cent of the state’s total revenue, which including federal transfers, stood at N339.382 billion.

In the first quarter (Q1) of 2016, the state’s IGR amounted to N76 billion, while federal transfers stood at N26 billion, of which only N7 billion was received from statutory allocation.

This was disclosed this on Tuesday, by the Lagos state Commissioner for Finance, Dr Mustapha Abiodun Akinkunmi, during the 2016 inter-ministerial press briefing, at Alausa Ikeja, in commemoration of one year anniversary of the state Governor, Mr Akinwumi Ambode.

“Despite wider national economic malaise, Lagos State’s strong macroeconomic fundamentals provide a strong base for growth and development. I am happy to report that the Lagos State’s economy is strong and financially viable,” Akinkunmi said.

“Lagos State’s GDP IS 20-25 per cent of Nigeria’s, and is larger than that of many neighbouring countries within the region. In the year 2015, fiscal sustainability was strengthened to in response to the oil price collapse and lowered federal receipts. For example, in year 2015, LIRS alone accounted for N225 billion (56%) of the State’s total revenue which amounted to N399 billion including federal transfers,” the commissioner added.

Highlighting the effort of the state government towards job creation in the state, he said,
“We’ve facilitated the opening of the N6.25 billion Lagos State Employment Trust Fund which will allow youths and unemployed citizens have access to adequate finance for entrepreneurial ventures, in line with the initiative and campaign promises of His Excellency, the governor,” Akinkunmi noted.