In spite of reduced federal allocation, Lagos rakes in N101.69bn in Q1

The Lagos State Government has said it generated a total revenue of N101.69 billion in the first quarter of year 2016 with a surplus of ₦4.85 billion as against an expected deficit of ₦29.92billion,.

Giving this breakdown on Monday, State Commissioner for Economic Planning and Budget, Mr. Akinyemi Ashade said the performance was ₦4.40 billion more in absolute term compared to year 2015 and was achieved despite the current economic realities in the country.

The capital expenditure at the end of the first quarter of 2016 performed at ₦48.88bn (51%) which was better than ₦15.08bn (24%) in the same period of year 2015, while the recurrent expenditure is ₦47.96bn (70%) as against ₦57.50bn (95%) in year 2015, he said.

Ashade who spoke while addressing journalists continued, that “This level of performance was achieved despite the diminishing statutory allocations from the federation account. It is our belief that with the implementation of multiple revenue collection channels and broadening of our revenue base, we should achieve tremendous progress in our revenue drive.”

The commissioner explained that the total Internally Generated Revenue (IGR) in the first quarter of 2016 was N76.06bn (72%) and 75% of total revenue, as against N67.21bn (74% of the estimate for first quarter of 2015) and 69% of total revenue in the corresponding period for last year.

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“Lagos Internal Revenue Service (LIRS) revenue for first quarter of 2016 was N67.25bn (90% of estimate for the quarter) representing 88% of the total IGR and 66.12% of the total revenue, compared to N60.58bn (87% of the estimate for first quarter of 2015), representing 90% of total IGR and 62% of total revenue in year2015.

“This performance was N6.67bn more in absolute terms compared to corresponding period in year 2015 and due largely to more participatory structural and systemic re-engineering, he stated.

“Over the course of the first quarter of year 2016, Federal transfers contributed N25.64bn (83% of the estimate for the quarter) and accounted for 25.21% of total revenue. Further breakdown showed that statutory allocations contributed N7.48bn while Value Added Tax (VAT) contributed N18.16bn.”

Ashade said capital expenditure performance was expected to significantly improve in the second quarter of 2016 based on government’s projections and expectations of revenue inflows, adding that the recurrent expenditure for the first quarters of year 2016 was N47.96bn (70%) as against N57.50bn (95%) in the same period in 2015.

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