Lagos, Nigeria’s commercial capital is giving the financial markets one of the most positive news after the signing of the 2016 budget.
In statement made available on the The state’s Q1 2016 result came as a surprise to the business community. In the result, Lagos’ Q1 2016 total revenue rose to NGN101.6 billion compared to NGN 97.28 billion the state made in Q1 2015 . This is an impressive percentage growth of 4.4% growth year on year. Adjusting its forecast to the realities on ground, the state ministry of finance made a deficit forecast of NGN 29.92 billion.
The state’s internally generated revenue, IGR also grew by 13.2% year on year. Last year within the same quarter, the state generated ‘NGN 76.06 billion was the Internally Generated Revenue (IGR) of the State in the first quarter representing 72 percent of the estimate for the quarter and 75 percent of the total revenue, as against the NGN 67.21 billion generated in first quarter of 2015 representing 74 percent of the estimate and 69 percent of the total revenue in the corresponding period for last year.’
Commenting on the result, Akinyemi Ashade, the commissioner of finance said:
Over the course of the first quarter of Y2016, Federal transfers contributed NGN 25.64 billion (83 percent of the estimate for the quarter) and accounted for 25.21 percent of total revenue. Further breakdown showed that statutory allocations contributed NGN 7.48bn while VAT contributed NGN 18.16 billion,” Ashade said.
Speaking on performance of capital expenditures for the period under review, the Commissioner explained that in the regard, the government expended NGN 48.88 billion on capital projects which represented a 51 percent better performance of NGN 15.08 billion (24 percent) as at the first quarter of 2015.
The state has also improved its capital vs expenditure from 50% expenditure vs 20% capital in last quarter to 50:50.
The state also unveiled plans to forge ahead with the mono rail project.
According to Ashade, the “monorail project is an urban mass transportation project different from the ongoing Blue Line Rail project that will connect Mile 12 to CMS, and the Red Line Rail Project”
He said “a detailed feasibility study has been commissioned on the monorail project to validate the initial survey, which will eventually lead to an investment of US$1billion (about NGN 300 billion) in the project if the results of the feasibility study are positive, amongst other conditions.”
Lagos is the most buoyant economy in Nigeria and the fifth largest in Africa. The state has also diversified its revenue into oil production through its Aje Field.