Lagos State plans to borrow N192.5 bln from domestic, external debt markets in 2021
By Oludare Mayowa
Lagos State, Nigeria’s economic nerve centre plans to borrow N192.49 billion from both domestic and external sources to plug the deficit in this year’s budget.
The state said it will issue N100 billion from the domestic bond market, another N41 billion borrowing locally and the balance of N57 billion from foreign lenders.
Lagos plans to spend N1.16 trillion in 2021, with expectations that the bulk of funding will come from N723.8 billion internally generated revenue while N175.4 billion will comes from the federation accounts.
Speaking at a fact behind the figure programme on Thursday, the state commissioner for finance Rabiu Olowo said; “A lot we need to be done this year, especially for our improvement drive.
Debt is good when it is used for capital projects and what is more important is debt sustainability benchmark.
“We closed the year around 19.8 percent benchmark for GDP to revenue ratio and we see ourself landing on 22 percent this year,” Olowo said.
He put the debt charges of the state at N31 billion and total debt repayment including principal and others at N158 billion.
However, a report by the Debt Management Office (DMO) recently said as of the end of September 2020, Lagos State is owing about N493.32 billion in domestic debt, making the state the biggest debtors among the sub-nationals.