The Lagos State Government said it
inherited a debt of N430 billion from the administration of Babatunde Raji
Fashola.
The debt legacy was revealed yesterday
as the state announced plans to float a new bond of N43 billion in the Capital
Market this year as part of move to finance its budget deficit.
Commissioner for Finance, Mustapha
Akinkunmi however said the debt was not a big burden for the state as the
government has set money aside to liquidate a fraction of it.
This year, the government is paying
about N78 billion to the creditors.
He said the debt profile of the state
is sustainable according to international rating, adding that adequate plans
have been put in place to pay back the state’s debt which is a long term debt.
The state government is borrowing
N119.7 billion to finance its budget deficit for this year. Out of the N662.588
billion budget for this year, the total revenue is put at N542.873 billion
while the balance of N119.715 billion to be funded through borrowing.
Akinkunmi, who spoke in Ikeja, Lagos,
Southwest Nigeria while answering questions on how government would finance the
deficit said very soon, the N43 billion bond would be floated to raise money to
fund the deficit.
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