The Lagos State Commissioner of Finance, Dr. Mustapha Abiodun Akinkunmi, has described the state economy as strong and financially stable in spite of the national economic malaise, saying that Lagos strong macroeconomic fundamentals provide a strong base for growth and development.
The Commissioner, who disclosed this recently at the Y2016 Ministerial Press Briefing of the State Government in commemoration of the first year in office of Governor Ambode, stated that based on these fundamentals, the State has a wide base of revenue sources, providing significant internally generated revenue, majorly through tax collections.
According to him, “Lagos has a population of over 20 million people and with the population growing at a rate of 6% per annum; it contains 45% of Nigeria’s skilled labour workforce and home to 10,000 industrial and commercial concerns, and the urbanization rate of 16% along the Lekki-Epe corridor is the fastest in the sub-region with a financial value of $130 billion.”
“The State’s GDP is 20-25% of Nigeria’s which is larger than that of many neighbouring countries within the region and the city is a transport hub, catering for over 70% of international air traffic to and from Nigeria, and over 90% of non-oil & gas seaport activities.”
He disclosed that in the year 2015, the present administration strengthened the fiscal sustainability of the state in response to the oil price collapse and low federal receipts as well as tasking all major revenue generating agencies to increase revenue targets by 10% for the year.
Akinkunmi declared that Lagos has a taxable population of at least 8 million, signaling growth prospects for tax collection, stressing that efforts have been set in motion to grow IGR by 50% in 2017 / 2018 through the GIS Land Administration Project and the Smart City Project.
The Commissioner emphasized that due to the State’s strong internal revenue base and its impressive credit history, Lagos legal borrowing capacity exceeds that allowed to other States, noting that the current composition of the government borrowing reflects improvements in debt management over the course of the year.
“We will continue to manage efficiently our financial resources to deliver more dividends of democracy. The State’s debt sustainability ratios are all within World Bank guidelines and our credit ratings remain one of the best in the country presently.”
Dr. Mustapha Akinkunmi affirmed that as a result of this and ongoing major reforms in public financial management, Lagos State will continue to enjoy the support of multilateral agencies, especially the World Bank.
No comments:
Post a Comment