(Date: 13 January, 2022)




It gives me great pleasure to welcome you all to this Media briefing on the Analysis of the Y2022 Budget tagged Budget of Consolidation’’. It will be recalled that on Wednesday, 24th November 2021; a proposed Y2022 Appropriation Bill of N1.388trn was presented by Mr. Governor, Babajide Olusola Sanwo-Olu to the Lagos State House of Assembly for consideration and assent. After a very rigorous bilateral engagement with the respective MDAs, an amended Bill of ₦1.758trn was subsequently passed on Wednesday, 29th December 2021 by the Lagos State House of Assembly and was signed into law by Mr. Governor on Friday 31st December 2021.


The Y2021 Budget Performance

The revised Y2021 Budget of ₦1.257trn had a total revenue of ₦984.573bn and deficit financing of ₦271.994bn; the Capital to Recurrent Ratio stood at 59:41 i.e., Capital Expenditure of ₦743.224bn and a Recurrent Expenditure of ₦513.343bn. As at November 30th, 2021, the budget posted a performance of 73%. Our Revenue Performance was 75%, while Capital & Recurrent Expenditure performed at 65% & 83% respectively.


The 65% performance of Capex is the result of our closure of the 100billion Bond transaction, which was oversubscribed in December 2021. As a result, we believe that Capex performance will close at about 85% by December 2021. This therefore is expected to enable the state achieve a strong budget performance of about 89% by year end 2021 despite the daunting challenges in the year.


Y2022 Budget estimates

The Y2022 budget, which we have christened the “Budget of Consolidation” is a landmark budget in the history of the state both in its size and texture. The approved Y2022 Budget of ₦1.758trn made up of ₦1.167trn Capital Expenditure and ₦591.281bn Recurrent Expenditure, resulting in a Capital to Recurrent ratio of 66:34, which is strongly in favor of Capital Expenditure.

Total Revenue is estimated at ₦1.237trn while deficit funding requirement is 521.275bn, which at 21% of Debt service to Total revenue, is within the fiscal sustainability benchmarks of 40%.


Our overriding budget objective to achieve a budget of consolidation is:

  • Substantially complete existing and ongoing infrastructure project

Infrastructure is essential to statewide economic and social development. It is therefore important that we accelerate the completion of our ongoing project to release the inherent value of the projects to the people of Lagos. This is especially important given that this is the last full year budget of this administration. Accordingly, we have increased our investment in infrastructure by 86% over the prior year budget to N619billion representing 35% of the entire budget size.



  • Prioritization of existing, contractor funded (front loaded) infrastructure projects e.g.
    1. Completion of 8 Stadia across the 5 Ibile divisions of Lagos State, to facilitate youth development, engagement and community sports
    2. Construction and Rehabilitation of schools across the state to significantly improve access to quality education
    3. The Construction of the 6-lane reinforced concrete Lekki Epe express way from Eleko junction to Epe T-junction. This strategic project is aimed at accommodating the increasing huge and heavy vehicular movement in the Lekki Epe axis especially when the deep seaport and the Dangote refineries et al comes into operation.
    4. Procurement of 62 fire vehicles to improve our fire response service all over Lagos by further decentralization of operating locations all over the state. This will strengthen our emergency response capability.
    5. Construction of 130 bed New Massey ultra-modern and fit for purpose Pediatric programmed and emergency general hospital. We believe that when this hospital, which will be located at Lagos Island is completed, it will be the largest specialist children hospital in sub- Saharan Africa.
    6. Construction of the Opebi Link bridge to Maryland that will improve significantly travel time and alternative route options the axis.

All these projects are contractor funded, with structures that provide very beneficial payment terms that gives the state upfront value (front loaded) ahead of payments; thereby increasing the sustainability benefits to the state.


  1. Human Capital Development and Social interventions:

Human capital continues to be an area of deep interest to the state. We believe that the opportunities in the state can only be converted to value by a population that is healthy, skilled and inclusive. This year budget’s budget increased our investment in this regard by 30% to N325billion in Y2022 about 18% of the total budget size.

Under our human capital development initiatives, the Y2022 budget increased the allocation to the education family by 25% to N173billion representing 10% of the budget size while the health family received an allocation of N132billion representing 35% increase over prior year budget and 8% of the current budget size.

  1. Food security

One of the major lessons of COVID 19 is that, as the consumption capital of Nigeria, Lagos can easily run out of food supply in the event of crisis. We have therefore continued since the outbreak of COVID 19 to increase our investment and attention on food security. We have completed the 5-year Agric road map to provide support to our farmers, create food banks and improve our food systems generally. In line with this posture, we have increased in Y2022 our budget to Agric by 34% to N27billion. We intend to complete the Imota rice mill, which when completed will have a capacity to produce 2.6million 50kg bags of rice per annum and employ over 350,000 people both directly and indirectly. In addition to this, we will be training and empowering over 40,000 women and youth in the business of Agriculture.




  1. Technology

Lagos intends to be the technology hub for Africa a major incubation and acceleration destination for technology solutions. We have seen technology unicorn come out of Lagos and do believe that by expanding our support for that sector our creative and innovative youth population will find expression for enterprise of scalable proportion. We can have our young people develop skills and solutions that will produce jobs by providing service to corporate both in Nigeria and internationally from Lagos.

We have provided an increase in technology investment of 27% over Y2021 budget to N30billion. We will continue to invest in strengthening of our intelligence gathering/capacity building capabilities together with improving the ease of doing business through the SmartCity project, The Lagos new Data Center project, Eko Excel project and the Oracle upgrade project.

We will continue implementing in collaboration with private sector partners existing initiative like the 3,000 broad band fiber duct infrastructure project, Knowledge Innovation, Technology, and Entrepreneurship (KITE) Campus development at Yaba in addition to the Lagos Science Research and Innovation council (LASRIC). All this will strengthen our aspiration to be the technology hub for Africa.

  1. Youth Development

Given the demography of Lagos, our investment in technology, the 8 stadia, Agriculture, Entertainment & Tourism are largely targeted at our youth development and engagement. We believe that Lagos has one of the most innovative youth populations in Africa, which we intend to continue to cultivate.


As earlier stated, there was a difference between the total budget size presented by the Executive and the final size passed by the Legislature. This difference is largely accounted for by the decision during the bilateral meeting with the MDAs to further accelerate already existing projects to bring them to substantial closure. While I have mentioned some of such projects above under the contractor financed programs some others worthy of mention include the following:


  • The 24km Red line rail from Agbado to Oyingbo (phase 1). This includes 10 bridges/overpasses, 13 pedestrian bridges and 8 train stations.
  • The 13km Blue line rail from Mile 2 to Marina with sea crossing (phase 1)
  • The 20km Lagos Badagry express way to Okokomaiko
  • Expanded Drainage construction/rehabilitation/maintenance program
  • Channelization of our water ways among other infrastructure projects.

The funds for most of these projects are largely committed.


The Y2022 Budget is consistent with the THEMES agenda and designed to give priority to the completion of on-going projects [Stadia, Special Committee on Rehabilitation of Public Schools (SCRPS), Lekki-Epe Road, Fire equipment, New Massey Children Hospital, Opebi-Mende Link bridge, etc.] as well as ensure that every effort, investment, partnership, policy translates maximally into noticeable positive impact in the lives of our people.


Y2022 Total Budget Revenue

The total budget size of ₦1.758Trillion will be funded from a total revenue estimate of ₦1.237Trillion, comprising of the following:

S/N Description Balances (N)
1 Total Internally Generated Revenue (TIGR): 980.654bn
2 Capital Receipts 142.743bn
3 Federal Transfer 256.268bn


  • 5% (N599,04bn) of the projected TIGR is expected to be contributed by LIRS, while about 19.2% (N156.65bn) is expected to be generated by other MDAs of government. We shall achieve this by expanding the tax net with the deployment of technology, economic intelligence, through data gathering and analysis amongst other initiatives.
  • We believe that there are huge revenue generating opportunities in the informal sector, including real estates, transportation and trade .
  • The deficit of ₦521.275bn is projected to be funded by a combination of internal, external loans and bond issuance as follows:
Deficit Funding Sources Amount
1. External Loan 39.599bn
2. Internal Loans 346.861bn
      i. Others 188.593bn
     ii. CBN/Local Bank/DCRR Facility (Already Committed) 158.267bn
Bond Issuance 134.815bn




A total expenditure of ₦1.758Trillion is budgeted for Y2022, broken down as follows:

S/N Description Balances (N)
1 Recurrent Expenditure (Debt Inclusive) 591.281bn
2 Capital Expenditure 1.167trn
Capital to Recurrent ratio =66:34


The components of the Recurrent Expenditure is as follows:

S/N Description Balances (N)
1 Total Personnel Costs 189.586bn
2 Total Overhead Costs 333.433bn
3 Debt charges 68.262bn


Recurrent Expenditure

  • The recurrent expenditure is moderated at a level of 34% of the Total Expenditure, out of which the Personnel Cost is 586bn representing 11% of the Total Expenditure.


Capital Expenditure

  • Capital Expenditure accounts for 66% of the total budget size. This is a demonstration of our administration’s commitment to completion of all ongoing projects, massive infrastructure renewal and development towards rebuilding and actualizing a Greater Lagos.







The summary of the Sectoral allocations is as tabulated below:

General Public Services 181,179,232,923 103,553,950,652 284,733,183,575 16
Public Order and Safety 32,387,420,312 38,628,417,508 71,015,837,821 4
Economic Affairs 59,296,687,451 522,927,819,985 582,224,507,436 33
Environment 29,441,125,279 63,064,102,140 92,505,227,418 5
Housing and Community Amenities 11,368,163,499 78,250,448,452 89,618,611,951 5
Health 88,471,057,534 38,877,621,224 127,348,678,758 7
Recreation, Culture and Religion 7,320,392,482 12,898,375,167 20,218,767,649 1
Education 112,670,516,469 60,855,678,703 173,526,195,172 10
Social Protection 6,109,828,160 3,700,460,918 9,810,289,079 1
SECTORAL TOTAL 528,244,424,109 922,756,874,750 1,451,001,298,858 83
STATEWIDE 63,036,379,378 244,158,968,608 307,195,347,986 17
Contingency Reserve (Including Special Expenditure-Statewide and Special Expenditure-Others) 9,889,196,452 20,309,210,895 30,198,407,347 2
Loans (Repayments, CDSA & Debt Servicing)   170,997,372,704 170,997,372,704 10
Personnel Cost (Service wide and Pension) 53,147,182,926   53,147,182,926 3
Grants & Counterpart Fund   52,852,385,009 52,852,385,009 3
GRAND TOTAL 591,280,803,486 1,166,915,843,358 1,758,196,646,844 100



I want to assure you that our administration will leave no stone unturned in ensuring the full implementation of this budget.

May I also use this opportunity to make a passionate appeal to all the citizens of Lagos to fulfill their civic responsibilities by paying their taxes as and when due in order to ensure optimal performance of the budget.


Therefore, I wish to appreciate the members of the press for their doggedness in the coverage of the activities of our administration especially in the area of the state of our economy without mincing words. Your criticisms have emboldened us and we are determined to surpass our expectations.


On behalf of the Lagos State Government, I thank you for your support and cooperation, while we look forward to a more robust and meaningful relationship.


Thank you for Listening.

Igbega Ipinle Eko, Ajumo se ni!!!


Sam Egube

Honourable Commissioner (MEPB)