Lagos State government said the administration of Governor Babajide Sanwo-Olu has demonstrated financial prudence by generating N127billion revenue in the first quarter of 2021 despite the recession and adverse effects of the COVID-19 pandemic.
The State Commissioner for Finance, Dr Rabiu Olowo, made this disclosure on Thursday during the Ministerial Press Briefing to mark the 2nd year anniversary of Governor Sanwo-Olu’s administration in office.
This was just as Olowo explained that the state debt profile was nothing to worry about, saying the state economy was doing well with a 17.8 percent Debt Sustainability Ratio currently in operation in the state.
“We finished last year with N658 billion, to date by the end of the first quarter, we have N127 billion. That shows the resilience of our Ministries, departments, and Agencies despite the adverse on our micro economy. Our recovery from the recession is very fragile, this affects the micro economy but we will still think outside the box,” the commissioner said.
The commissioner attributed the increase in revenue to what he described as well thought strategy and commitment in technology, saying that the ministry ensured that the state revenue was optimized and leakages blocked, adding that Lagos was the only state in the country that was not complaining about COVID-19 pandemic, even though it was not everybody that was willing to pay the tax.
“Increase in revenue was as a result of well thought strategy and commitment in technology. We ensure our revenue is optimized and we block leakages. We are the only state in Nigeria that is not complaining about the pandemic. We have the strategy; it is not that everybody is willing to pay the tax,” Olowo explained.
The commissioner argued that debt was good, pointing out that what was most important was how it was managed, adding: “Debt sustainability ratio is about our ability to pay.”
“Our Debt Sustainability Ratio is 17.8 percent and we have the World Bank, the Ministry of Finance that serve as the regulator, with this we have demonstrated we have managed this debt,” he said.
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