What we know about

Lagos State Finances

About BudgIT

BudgIT is a civic organisation driven to make the Nigerian budget

and public data more understandable and accessible across every
literacy span. BudgIT’s innovation within the public circle comes
with a creative use of government data by either presenting these in
simple tweets, interactive formats or infographic displays. Our
primary goal is to use creative technology to intersect civic
engagement and institutional reform.

Lead Partner : Oluseun Onigbinde

Research Team: Atiku Samuel, Ayomide Faleye, Olaniyi Olaleye,

Thaddeus Jolayemi, Oyebola Agunloye, Ama Bassey
Henry Omokhaye

Creative Development: Segun Adeniyi and Folahan Johnson

Contact: [email protected] +234-803-727-6668,

+234-908-333-1633

Address: 55, Moleye Street, Sabo, Yaba, Lagos, Nigeria.

© 2018

Disclaimer: This document has been produced by BudgIT to provide

information on budgets and public data issues. BudgIT hereby
certifies that all the views expressed in this document accurately
reflect our analytical views that we believe are reliable and fact-
based.

Whilst reasonable care has been taken in preparing this document,

no responsibility or liability is accepted for errors or for any views
expressed herein by BudgIT for actions taken as a result of
information provided in this Report.
Overview
History Land Mass
2797.72 Sq Km
Water Area
779.56 Sq Km

Lagos State was created by virtue of the State 600,000 per annum, with a density of
(Creation and Transitional Provisions) Decree approximately 4,193 persons per sq. km. In the
No. 14 of 1967 on 27 May 1967, which urban areas of the Lagos metropolis, the
restructured Nigeria into 12 States. Prior to average population density is over 20,000
this, Lagos Municipality had been people per sq. km.
administered by the federal government (FG),
through the Federal Ministry of Lagos Affairs Current demographic trend analysis reveals
as the regional authority, while the Lagos City that Lagos’ population growth rate of 8% has
Council governed the City of Lagos. resulted in its harbouring 36.8% (an estimated
49.8 million) of Nigeria’s 150 million urban
The metropolitan areas (previously referred to population (World Bank, 1996).
as Colony Provinces) of Ikeja, Agege, Mushin,
Ikorodu, Epe and Badagry were administered The implication is that whereas Nigeria’s
by the then Western Region. The State population growth is approximately 4-5% and
became an administrative entity on 11 April stands globally at 2%, Lagos’ population is
1968, with Lagos Island serving the dual role of growing ten times faster than that of New
State and Federal Capital. York and Los Angeles (USA), with grave
implications for urban sustainability1.
However, in 1976, Lagos Island ceased to be
the capital; Ikeja assumed that role. The seat
of the federal government was subsequently Estimated Population Figures
relocated to Abuja on 12 December 1991, and
Lagos also ceased to be Nigeria’s political 2012 11,042,686
capital.

Lagos nevertheless remains Nigeria’s 2013 11,401,767

economic, manufacturing, financial and
commercial hub, also ranking among Africa’s
top cities along the same yardsticks. 2014 11,772,524

POPULATION 2015 12,155,337

According to the 2006 census conducted by
the National Population Commission (NPC), 2016 12,550,598
Lagos has a population of over nine million, of
a national estimate of 150 million. Source: Nigerian Bureau of Statistics (NBS),
Central Bank of Nigeria (CBN)

The population growth has a rate of about

4
Motor Vehicles Registration Statistics
Motor Cycles
2010 105,147

2015 25,958

Motor Vehicles
2010 936,604

2015 833,957

Number of Boats by
Ownership & Passengers (2015)

Boats Passengers
136 1,403,100

Number of Ferries by
Ownership & Passengers (2015)

Ferries Passengers
167 25,676,923

Source: Lagos State Government

5
 Finances
Lagos is a State every other in Nigeria may envy,
considering the size of its tax revenue relative to
its centrally-collected revenue. Compared to
many of its peers, Lagos is highly industrialised,
Lagos Telecommunications being the nation’s economic capital and home to
Statistics as at Q4 2017 a booming port system. The State government
relies on statutory allocations to undertake
projects and implement programmes, as
highlighted in its budget. Statutory allocations
make up about 21.67% of Total revenue for the
Active Voice state government, while the balance is
19,417,181 generated internally.

The economic structure of Lagos state gives it a

considerable advantage, in terms of internally-
13.39% generated revenue (IGR) uptake. In 2016, Lagos
of total active voice accounted for approximately 37% of Total IGR
lines in Nigeria collected by all States, reinforcing the optimal
financial position Lagos enjoys.

It is important to note at this point that more

Active details on Lagos’ financial statements are
notoriously kept opaque, with scant useful
Internet Lines information.
13,631,562
The State does not publish its detailed budget,
budget implementation reports, audited
statements and other critical documents
13.81% needed for holistic, independent assessment.
of total active internet
lines in Nigeria The low level of transparency in Lagos’ finances
is reflected in the quality of service and abysmal
Source: NCC, NBS range of infrastructure in the state; the paradox
of Lagos is its reality as a place where rubbish
dumps grow on streets, in tandem with six-figure
skyscrapers. Despite its huge revenue uptake,

1
https://www.fmdqotc.com/wp-content/uploads/2017/07/LASG-Series-2-Bond-Prospectus.pdf
2
https://www.cbn.gov.ng/Out/2017/SD/eCopy%20of%202016%20Statistical%20Bulletin_Real%20Sector%20
Statistics_Final.xlsx (Tab C5.2)
3
Telecoms Data: Active Voice and Internet per State, Porting and Tariff Information (Q4 2017) - ppg 59
http://www.nigerianstat.gov.ng/download/729
4
Telecoms Data: Active Voice and Internet per State, Porting and Tariff Information (Q4 2017) - ppg 60

6
the condition of Lagos’ road and drainage disconcerting. Furthermore, the Overhead
systems are overwhelmingly sub-optimal. costs of running the office of the governor of
Lagos is still some way from achieving crucial Lagos in 2017 was N6bn, a figure significantly
schemes, including a light rail system, and higher than the N1.32bn allocated for
lagging behind in terms of road infrastructure, Overhead costs for maintaining the office of
drainage construction and the provision of fire the President of Nigeria, in the 2018 budget.
stations.
It is therefore a matter of legal and moral
The condition of schools and hospitals, when principle for Lagos state to open up its books
juxtaposed with the State’s revenue is just as to public scrutiny.

http://www.nigerianstat.gov.ng/download/729
5
http://www.budgetoffice.gov.ng/index.php/2017-approved-budget?task=document.viewdoc&id=647

7
Lagos 2018 Budget
Fiscal Framework
Fiscal Framework
Lagos’ 2018 spending plans suggest she may through Oke-Ira in Eti-Osa to Epe-Lekki
be borrowing heavily through the year. The Expressway; the construction of an 8km
southwestern Nigerian State is planning to Regional Road to serve as an alternative route
spend approximately N1.046tn, with 66.8% (or to connect Victoria Garden City (VGC) with
N699.082bn) going into Capital items, while Freedom Road in Lekki Phase 1; the
the balance will be spent on Recurrent items, completion of the ongoing reconstruction of
including the servicing of public debts, Oshodi International Airport Road into a 10-
payment of salaries and emoluments of lane road and the construction of a Bus Rapid
workers and other associated Overhead costs Transit (BRT) lane from Oshodi to Abule-
Egba.
At N1.046tn, Lagos’ expansionist spending
plan for fiscal year 2018 is up 28.65%, from According to a sectoral breakdown of the
2017 levels of N813bn. Capital expenditure budget, General Public Services are
projections in 2018 stand at N699.082bn, a rise earmarked to gulp N171.623bn, representing
from N436.26bn in 2017. 16.41%; Public Order and Safety comes to
N46.612bn (4.46%); Economic Affairs at
What and how the State will spend the N473.87bn (45.3%); Environmental
N1.046tn on is locked away from public debate Protection at N54.582bn (5.22%), while
and assessment. Lagos is hoping for a Housing and Community Amenities got
Revenue uptake of N897bn, which is N59.904bn (5.73%).
significantly higher than 2017 projections of
N642bn. Disaggregated information on the The Health sector got N92.676bn (8.86%);
State’s revenue projections for 2018 has again Recreation, Culture and Religion got
not being made public. N12.511bn (1.2%) Education was pegged at
N126.302bn (12.07%), while Social Protection
In 2017, Lagos’ budget was anchored on got N8.042bn (0.77%).
Internally-generated Revenue projections of
N450.87bn, Federal transfers of N166.54bn Under the budget, there are provisions for the
and Capital receipts of N25.44bn. completion of five new Art Theatres;
establishment of a Heritage Centre at the
With revenue projected at N897bn and the former Federal Presidential State House
2018 spending plan built around N1.046tn, the recently handed over to the State
deficit for Lagos is pegged at N149bn, which Government; a world class museum between
will most likely be closed by borrowing, and the former Presidential Lodge and the State
sales of government properties. Preliminary House, Marina; construction of four new
information released to the public on the 2018 stadia in Igbogbo, Epe, Badagry and Ajeromi
budget states that the projects therein include Ifelodun (Ajegunle) and completion of the
the construction of the Agege Pen Cinema ongoing Epe and Badagry Marina projects. On
flyover; construction of alternative routes

6
https://www.premiumtimesng.com/regional/ssouth-west/257126-lagos-assembly-passes-n1-046-trillion-budget-2018.html

9
 Housing, there are provisions that include the completion of projects, particularly those at
Gbagada, Igbogbo, Iponri, Igando, Omole Phase I, Sangotedo and Ajara-Badagry under the Rent-
to-Own policy.

However, the breakdown of the budget, and amounts voted for each project, along with total
amounts spent in periods past remain unclear and unaccessible by the wider public.

2018 Lagos State Budget

Deficit

N149bn

Capital
Expenditure

N699.08bn
Budget Size
Revenue N897bn N1.046tn

N347.04bn

Recurrent
Source: Lagos State Government Expenditure

10
Revenue
 A History of Lagos State Revenue
Revenue
Lagos’ Revenue projection for the 2018 1998 N13.5bn
financial year is set at N897bn, a 39.72%
increase over 2017 estimates. 1999 N22.2bn
The State’s projected Revenue for 2016 was 2000 N27.1bn
N542.9bn, while Actual Revenue for Lagos in
2015, 2014, 2013 and 2012 was N384.4bn, 2001 N39.8bn
N408.1bn, N316.2bn and N310.4bn respectively.
2002 N41.8bn
Cumulatively, Lagos’ Revenue between 1999
and 2006 was N419.4bn; the State collected a 2003 N52.3bn
total of N2.44tn between 2007 and 2015. 2004 N62.8bn
Currently, data on actual collections in 2016 2005 N79.7bn
and 2017 remains unavailable.
2006 N93.7bn
Composition of Lagos State Revenue
based on 2015 Actual Receipt
2007 N118.8bn
2008 N179.3bn
8.66%
2009 N220.9bn
N33.27bn
Other 2010 N221.7bn
Revenue
N74.08bn 2011 N281.1bn
19.27% Other N175.43bn
Revenue PAYE
(IGR) 45.64%
2012 N310.4bn
2013 N316.2bn

N82.9bn 2014 N408.1bn

Federal
21.57%
Transfers 2015 N384.4bn
2016 N542.9bn*
N9.197bn Direct
Road Tax N9.52bn
2.48% 2.39% Assessment
2017 N642bn*
Source: Lagos State Government, OAGF
2018 N897bn*
Source: Lagos State Government, BudgIT Research
*Budget Figures

12
 Internally Generated Revenue
Lagos’ Internally-generated Revenue (IGR), Lagos State officially notes that there are 12
when compared to most of its peers, is taxes and levies collectable by the
relatively high. Her IGR as at the end of 2016 government, namely: Personal Income Tax,
was N302.4bn, from 2015 levels of N276.6bn. Withholding Tax (from individuals only), Capital
Previous financial reports from the Gains Tax (individuals only) and Stamp Duties
government show that IGR amounted to on instruments executed by individuals.
N219.2bn and N277.12bn in 2013 and 2014
respectively. Between 2007 and 2017, Lagos’ The State also collects tax on Pools Betting
IGR came to N2.38tn. and Lotteries; Gaming and casino taxes; Road
Taxes; Business premises registration fee;
History: Internally Generated Development Levy (individuals only), Naming
Revenue 1999-2017 of Streets registration in the State capital and
Right of Occupancy fees on lands owned by
the State Government in urban areas of the
1999 N14.6bn State.
2000 N11.6bn
Other revenue sources include Market taxes
2001 N17.9bn and levies where the State Finance is involved
2002 N20.8bn in the construction of the market, as well as
Hotel Occupancy and Restaurant
2003 N27.5bn Consumption Tax.
2004 N33.9bn
2005 N40.6bn
2006 N61.7bn
2007 N83.0bn Breakdown of Internally-Generated Revenue
2008 N129.6bn
2009 N178.5bn
2010 N173.4bn 19.27%
N74.1bn
Other Revenue
2011 N199.9bn
N9.52bn N175.43bn
2012 N202.8bn Road Tax 45.64%
PAYE
2013 N219.2bn 2.48%

2014 N277.1bn
2.39%
2015 N276.6bn
N9.19bn
2016 N302.4bn Direct Assessment

2017 N341.0bn
2018 N680.1bn*
Source: Lagos State Government, NBS, BudgIT Research
*Budget Figures

13
Personal Income Tax
PAYE Direct Assessment

Pay As You Earn (PAYE) is a form of personal Direct Assessment may relate to a form of
income tax that refers to tax deducted directly personal income tax used to assess tax for
from the wages and salaries of employees self-employed individuals. With the self-
operating in the formal sector. assessed tax scheme, a new taxpayer can
assess him/herself, and pay the calculated
Lagos’ total receipt under personal income tax amount. Direct assessment may also relate to
(on incomes of individuals), which was those taxes imposed on businesses, especially
N190.66bn in 2016, accounted for (informal) by the State authorities, based on the
approximately 63.3% of Total IGR that year. In size of their activities.
2010, 2011 and 2012, receipts under personal
income tax (PAYE) was N104.68bn, Lagos’ total receipt under direct assessment -
N120.25bn, N172.44bn respectively. Figures for was pegged at N6.62bn in 2016. In 2010, 2011
2018 remain outstanding and unclear. and 2012, revenue gotten under direct
assessment was N7.51bn and N7.97bn
On average, 64.8% of IGR for Lagos state respectively.
came from PAYE between 2010 and 2016.

History: PAYE History: Direct Assessment collected

2010 104.68bn 2010 N7.51bn

2011 N120.25bn 2011 N7.97bn
2012 N172.44bn 2012 N/A
2013 N/A 2013 N1.89bn
2014 N153.61bn 2014 N9.39bn
2015 N175.43bn 2015 N9.197bn
2016 N190.66bn* 2016 N6.616bn*
Source: NBS
Source: NBS
*Jan-June, 2016
*Jan-June, 2016

14
Road Tax Other Taxes

Road taxes are daily levies paid by commercial These include various taxe such as levies on
transporters operating within Nigeria’s states. market traders, land registration and other land-
related fees, as well as development levies on
In Lagos, total receipt under Road Tax was individuals, pool betting/lottery/gaming fees
approximately N9.54bn in 2016, accounting for and stamp duties on individuals.
about 3.16% of total Internally-generated
Revenue.

In 2010, 2011, 2012 and 2015 receipts from Road History: Other Taxes
Tax was N7.51bn, N7.97bn, N4.36bn and
N9.516bn respectively. 2010 N37.78bn
Preliminary reports from the Nigeria Bureau of 2011 N74.54bn
Statistics show that revenue from Road tax in 2012 N40.51bn
Lagos was N9.54bn, between January and
June 2016. 2013 N/A
2014 N/A
History: Road Tax Collection
2015 N74.08bn
2010 N7.51bn
2016 N21.56bn*
2011 N7.97bn *Jan-June, 2016
Source: Lagos State Government, BudgIT Research
2012 N4.36bn
2013 N/A
2014 N4.58bn
2015 N9.52bn
2016 N9.54bn*
*Jan-June, 2016
Source: Lagos State Government, BudgIT Research

15
Federal Transfers Under FAAC

The States received about N89.69bn in 2017

from the federation account, facilitated via the
Federal Account Allocation Committee
(FAAC). In 2014, 2015 and 2016, the total
amount received from FAAC came in at
N105.57bn, N82.91bn, N76.77bn respectively.

The composition of federal transfers includes

revenue from company income tax, tariffs on
import, Value Added Tax and revenue for the
oil sector.

History: Net FAAC Allocations

2007 N48.62bn

2008 71.35bn

2009 N75.0bn

2010 N87.89bn

2011 N111.66bn

2012 N118.59bn

2013 N117.72bn

2014 N105.57bn

2015 N82.91bn

2016 N76.78bn

2017 N89.69bn

2018
*Budget Projection
\ N177bn*

Source: Office of the Attorney General of the

Federation (OAGF); BudgIT Research
16
Breakdown
Value Added Tax due to structural and policy challenges.

Value Added Tax (VAT) was introduced in With regards to VAT figures, Lagos State
France in 1968; since then, over 150 countries received approximately N80.23bn in 2017.
worldwide have adopted some form of VAT.
For 2015 and 2016, Lagos received a total of
On average, countries from the Organisation N65.8bn and N75.43bn respectively.
for Economic Co-operation and Development
(OECD) cohort collect about 32% of their total History: Value Added Tax
revenue from VAT and 27% from personal
income taxes. This relatively new tax has 2007 N22.64bn
become a crucial revenue source among
OECD-member countries. 2008 N32.17bn
2009 N39.96bn
Nigeria is projecting a VAT uptake of
N207.86bn in fiscal year 2018; but the federal 2010 N47.29bn
government's share of VAT revenue was
2011 N51.02bn
N106.74bn and N104.66bn in 2014 and 2015
respectively. Clearly, expectations for revenue 2012 N61.39bn
collection numbers appear to be way beyond
the actual reality, in terms of what the 2013 N68.84bn
government receives.
2014 N72.62bn
On one hand, revenue from VAT seems to be 2015 N65.82bn
growing, despite Nigeria recently crawling out
of economic recession. However, the 2016 N75.44bn
perception in the wider economy is that N80.23bn
2017
Household Consumption expenditure is
declining, with salaries paid out to employees 2018 N103.2bn*
also plumbing lower depths, while the
*Budget Projection
economy's capacity to create jobs is strained,
Source: Office of the Attorney General of the
Federation (OAGF), Lagos State Government, BudgIT Research
Statutory Revenue becomes Statutory revenue, which is then
shared among the federal, state and local
Statutory revenue allocation to Lagos state in governments, using a composite sharing
2017 was approximately N43.19bn; a rise of formular.
27.5%, from N33.87bn in 2016.
Lagos state is entitled to some share of oil
In 2015, 2014 and 2013, Statutory revenue was revenue, company income tax, revenue from
N45.03bn, N59.85bn and N70.94bn tariff on incomes and other categories of
respectively. revenue that are federally-collected and
allocated, at the monthly FAAC meetings.
Statutory revenue for any State is the money it
is entitled to from the Federation Account. Oil
revenue, Company income tax , Customs-
related revenue (excluding VAT) are paid
directly into the Federation Account.

History of Statutory Revenue

2007 N35.76bn
2008 N47.99bn
2009 N37.64bn
2010 N48.21bn
2011 N69.86bn
2012 N66.99bn
2013 N70.94bn
2014 N59.85bn
2015 N45.03bn
2016 N33.87bn
2017 N43.19bn
2018 N57.5bn*
Source: OAGF, Lagos State Government
*Budget Projection

After a deduction of 13% of the revenue

accruing to the Federation Account directly
from any natural resources, what is left

18
Why is Lagos' FAAC
Reducing?
Why is Lagos' FAAC Reducing?
Bonds issued by Nigerian States are usually Lagos' allocation. However, Total deductions
assisted by Irrevocable Standing Payment from the state's FAAC account in 2017 rose to
Orders (ISPOs), which legally empower the N33.73bn, from 2016 deductions worth
Accountant General of the Federation (AGF) N32.54bn. In 2015, 2014 and 2013, a total of
to withdraw sums due to debt holders directly N27.95bn, N26.9bn and N22.06bn was
from State governments' revenue accounts deducted from Lagos' FAAC allocation
with the federal government, including interest respectively, reinforcing the State's increasing
and capital repayments. debt profile.

Also, almost all external debt have some form History: Deductions from Lagos' FAAC Allocations
of ISPOs, which enables the federal
2007 N9.78bn
government to deduct interest and capital
repayments as due, on behalf of the States. 2008 N8.80bn
Lagos has been issuing bonds and increasing
its stock of external debt, with its Domestic 2009 N2.59bn
debt leaping from N157.34bn in 2011, to 2010 N7.60bn
N311.76bn in 2016; figures for 2017 are
unavailable. 2011 N9.22bn

External debt has also grown from 2011 figures 2012 N9.79bn
of $400.5mn, to $1.45bn in 2017. The 2013 N22.06bn
implication is that the federal government is
making deductions to ensure Lagos meets its 2014 N26.90bn
debt obligations. These deductions at source
have therefore resulted in a reduction in the 2015 N27.95bn
total revenue Lagos gets via the FAAC N32.54bn
2016
allocations.
2017 N33.73bn
In 2007, only N9.78bn was deducted from Source: OAGF, Budget Research
Debt
DEBT
Debt
Domestic Debt Profile External Debt

Lagos has the highest domestic debt profile Between 2012 and 2014, Lagos' external debt
among all 36 States in Nigeria; Total debt was rose by 89.85%, from $611m, to $1.16bn. The
N311bn, as at year-end 2016. Debt in 2015, 2014 State's total external debt in 2015 and 2016 was
and 2013 amounted to N218.54bn, N268.07bn, at $1.2bn and $1.17bn respectively. Lagos State
N278.87bn respectively. has the highest foreign debt profile among its
equals, followed by Kaduna, Edo and Cross River
States.
History: Domestic Debt Profile History: External Debt Profile
2011 N157.54bn 2011 $491.85m
2012 N230.43bn 2012 $611.25m
2013 N278.87bn 2013 $938.14m
2014 N268.07bn 2014 $1.17bn
2015 N218.54bn 2015 $1.21bn
2016 N311.76bn 2016 $1.38bn
2017 N363.29bn 2017 $1.47bn
Source: DMO, CBN, Budget Research
Source: Debt Management Office (DMO),
CBN, Budget Research
Expenditure
Personnel Costs
History: Actual Personnel Costs
Lagos spent approximately N91bn in 2015, or
22.89% of Total expenditure, on the salaries 1998 N8.5bn
and remuneration of its civil workers; up from
1999 N9.4bn
N78.8bn in 2014 and N75.6bn in 2013.
2000 N12.9bn
Between 2005 and 2015, these personnel 2001 N13.9bn
costs for Lagos grew by 386.7%.
2002 N15bn
Actual spending on personnel costs for 2016 2003 N14.5bn
and 2017 are as yet unavailable.
2004 N16.5bn
2005 N18.7bn
2006 N21.2bn
2007 N30.5bn
2008 N40.5bn
2009 N42.8bn
2010 N57.7bn
2011 N66.4bn
2012 N62.4bn
2013 N75.6bn
2014 N78.8bn
2015 N91bn
2016 N125.2bn*
2017 N104.7bn*
2018 N112.2bn*
*Budget Projection
Source: Lagos State Government; BudgIT Research

24
Public Debt Servicing History: Public Debt Servicing
The cost of servicing debt taken on by the 1998 N400m
Lagos government, relative to its revenue, is
more or less flat. 1999 N200m
2000 N300m
About 12.9% of Lagos' revenue was spent
servicing outstanding debt in 2015; public debt 2001 N7.3bn
servicing costs have risen from N4.5bn in
2009, to N35.9bn in 2018.
2002 N2.6bn
2003 N8.8bn
Public debt servicing costs came to N22.9bn,
N17bn, N33.2bn and N1.9bn in 2014, 2013, 2012 2004 N12.2bn
and 2011 respectively. Actual cost of servicing 2005 N14bn
outstanding debts for Lagos state in 2016 and
2017 remains unclear, due to the State 2006 N13.3bn
neglecting to publish its budget
2007 N28.2bn
implementation reports.
2008 N20.9bn
2009 N4.5bn
2010 N5.2bn
2011 N1.9bn
2012 N33.2bn
2013 N17bn
2014 N22.9bn
2015 N20.8bn
2016 N13.2bn*
2017 N30.9bn*
2018 N35.9bn*
Source: Lagos State Government; BudgIT Research
*Budget Projection
Overhead costs and Subvention History: Overhead costs and
subvention
Available data suggests the Overhead costs of
maintaining Lagos' government has somewhat 2001 N14.3bn
exhibited a downward trend, from 2014 levels of
N104.1bn to N96.9bn in 2015.
2002 N15.8bn
Lagos spent N105.1bn, N138.2bn, N80.8bn and
N83.2bn on Overheads in 2013, 2012, 2011 and 2003 N15.3bn
2010 respectively, while figures for 2016 and
2017 are unknown. Furthermore, the 2004 N20.2bn
breakdown of Lagos’ 2018 overhead cost
projections is not publicly available.
2005 N26.8bn
Essentially, what the State plans to spend on
stationery and computer consumables, 2006 N47.6bn
newspapers and periodicals, international and
domestic travels, utility bills and general
2007 N49.3bn
maintenance remains secret.

2008 N45.2bn

2009 N73.5bn

2010 N83.2bn

2011 N80.8bn

2012 N138.2bn

2013 N105.1bn

2014 N104.1bn

2015 N96.9bn

2016 N103.7bn*

2017 N170.4bn*

2018 N198.9bn*
Source: Lagos State Government; BudgIT Research
*Budget Projection
26
Capital Expenditure History: Capital Spending
The Capital expenditure portion of Lagos'
1998 N5.7bn
2015 spendings was N160bn; a N5bn increase
over 2014 capital spending, which accounted 1999 N3.3bn
for 40.24% of Actual spending.
2000 N8.1bn
Capital spending in 2013, 2012, 2011 and 2010 2001 N3.9bn
was N274.6bn, N268.5bn, N230.8bn and
N245.2bn respectively. Information on the 2002 N6.1bn
2016 and 2017 budget implementation report is
not available, and the breakdown of the State's 2003 N8.5bn
2018 budget remains excluded from public 2004 N9.7bn
knowledge.
2005 N19.2bn
Preliminary information released to the public 2006 N50.1bn
on Lagos' 2018 budget included proposed
spending on projects such as the construction 2007 N78.4bn
of the Agege Pen Cinema flyover;
construction on alternative routes through 2008 N155.2bn
Oke-Ira in Eti-Osa to Epe-Lekki Expressway; 2009 N235.7bn
the construction of an 8km Regional Road to
serve as alternative route to connect Victoria 2010 N245.2bn
Garden City (VGC) with Freedom Road in
2011 N230.8bn
Lekki Phase 1; the completion of the ongoing
reconstruction of Oshodi International Airport 2012 N268.5bn
Road into a 10-lane road and the construction
of a BRT Lane from Oshodi to Abule-Egba. 2013 N274.6bn
2014 N165bn
2015 N160bn
2016 / N386.9bn*
2017 / N507.8bn*
2018
Source: Lagos State Government; BudgIT Research
/ N699.1bn*
*Budget Projection

27
 History: Capital Expenditure as a
Transportation Percentage of Total Spending

Statistics 1998 28.06%

1999 17.46%
2000 30.92%
2001 9.90%
2002 15.44%
2003 18.05%
LAGBUS 2004 16.55%
1309 2005 24.40%
2006 37.90%
2007 42.06bn
2008 59.28%
2009 66.12%
Passengers 2010 62.66%
62,387,434 2011 60.75%
2012 53.45%
2013 58.14%
2014 40.79%
2015 40.42%
Source: Lagos State Government,
BudgIT Research

Routes
57

28
Conclusion

From the foregoing, the unequivocal, recurring budget documents and budget
theme is that Lagos State's finances and implementation reports, away from the public
specifically its utilisation and spending of is widely regarded as an attempt to nurture and
taxpayers funds remain mainly opaque, foster a corrupt system for the benefit of the
uncoordinated, and brazen. The government ruling elite and their cronies.
has persistently shown an inability to
acknowledge the presence or wishes of the Over the last decade, Lagos State's accounts
same Lagosians in whose names these have taken on a worrisome trend; the amount
monies are disbursed and collected. of public funds being handled has grown, but
so has secrecy and an outright refusal to
This situation is exacerbated by the non- adhere to the basic tenets of democracy that
capacity of the Lagos Assembly to encourage state the public has a right to know.
or enforce conditions that mandate the Lagos
state government to articulate its policies, With over N3.8tn spent by Lagos State
present a detailed budget and/or submit governments between 1999 and 2015 amid
standardised performance measurement little or no documentation and verifiable trails
indicators. Lawmakers have presided over a backing such spendings, we use this medium
sustained culture where governors appear to to call for a holistic audit of the State's
sit back and routinely award contracts without finances.
accountability.
We urge the Lagos government to submit to
A wanton disregard for the sanctity of public the fundamental principles of democracy,
funds in Nigeria's richest state by total which include publishing key budget
government revenue means that even when documents, including the detailed proposed
tax revenues climb to all-time highs and budget for Lagos State, the enacted budget,
outgrow agreed benchmarks, Lagos will budget implementation reports, financial
rather continue to agitate for more tax, statements for Lagos, and the Audit reports. It
drawdown on previous savings, or resort to is equally necessary for Lagos to publish all
heavy debts accumulation - debts which will contract agreements entered into and carried
be paid in years to come by children currently over within each relevant financial year.
under the age of five.
We reiterate that it is important for taxpayers,
Worldwide, transparency is increasingly civil society organisations, development
viewed by leaders and the led as central to partners, international organisation to take
curbing corruption and other dysfunctions note and be aware. Lagos is increasingly
within developing countries. normalising opacity in governance, despite
being a prominent State; a development that
A deliberate attempt by any government to could set dire precedents for other States, and
keep key information, including its detailed contribute to a devastating retardation of
Nigeria's hard-won democracy.

29
 www.yourbudgit.com
Simplifying the
Nigerian Budget
At BudgIT, we believe it is the RIGHT of every citizen to have access to,
and understand public budgets. We also believe budgets must be
efficiently implemented for the GOOD of the people.