We Looked At Lagos State’s 2019 Financial Statement: Where Does The Money Go?

November 2, 2020

Citizen is a column that explains how the government’s policies fucks citizens and how we can unfuck ourselves.

National Assembly blocking electronic transmission of election results

After a series of lootings in Lagos State, Babajide Sanwo-Olu, the governor of the state, declared that the state will need ₦1 trillion to fix the damages incurred.

There have also been allegations of fraud and financial misappropriation against the speaker of the Lagos State House of Assembly. 

Due to this, there has been public scrutiny on the Lagos State and the Lagos State House of Assembly’s disbursement of funds. We decided to break down the financial statement of Lagos State to get a true picture of the financial situation of the state.

1. Lagos State earned ₦644 billion in 2019

The total amount paid to the state for the economic value it offers is calculated as revenue.

Economic value includes the services that the state renders to its citizens and the country, from which it is paid back in taxes, allocations and other monies.

This revenue is divided into “non-exchange transactions” and “exchange transactions”.

Exchange transactions are transactions where two people buy and sell from each other. In a non-exchange transaction, there is no sale of any goods, and only one party takes from the other. An example of a non-exchange transaction is taxes and levies.

The money Lagos got from non-exchange transactions in 2019 include: 

  • Taxation income – ₦348,001,113,000 billion .
  • Levies, fees and fines – ₦26,597,553,000 billion. 
  • Statutory allocation – ₦229,495,389,000 billion.
  •  Grants – ₦483,934,000 million.
  •  Other revenue from non-exchange transactions – ₦3,958,723,000 billion.

Exchange transactions include: 

  • Income from other sources –  refers to money gotten from private sector development programmes, such as the Lekki-Ikoyi toll revenue, proceeds from hospital units and other miscellaneous revenues. This revenue was  ₦24,014,757,000 billion.
  • Capital receipts – ₦8,972,888, 000 billion.
  • Investment income – ₦2,077,847,000 billion.
  • Interest income -₦1,161,184,000 billion.

The total operating revenue of the state was ₦644,762,788,000.

Read: This Is Lagos

2. Lagos State spent ₦278 billion in 2019

From the gross revenue of the state, the state spent ₦278,551,391,000 billion on expenses, leaving it with ₦366,211,397,000 billion.

The ₦278 billion expenses went to: 

  • Wages, salaries and employee benefits – ₦107,132,214,000 billion.
  • Grants and other transfers – ₦16,626,164 billion.
  • Subvention to parastatals – ₦53,445,714 billion.
  • General and administrative expenses – ₦101,347,300 billion.

3. Other losses, charges and expenses amounted to  ₦366 billion

After spending ₦278 billion on operating expenses, Lagos State further incurred losses in these respects:

  • Capital expenditure134,521,650,000 billion.
  • Public debt charges62,533,163 billion.
  • Net loss on foreign exchange transactions – (2,332,949,000 billion).
  • Depreciation104,491,678 billion.

4. Lagos State had a ₦66 billion surplus for the 2019 financial year.

After spending ₦278 billion on recurrent expenditure, and losing ₦366 billion on capital expenses, foreign exchange losses, public debt charges and depreciation, Lagos State had a surplus of ₦66,997,855,000 billion for the 2019 financial year.

5. Lagos State’s total asset is ₦2.4 trillion

Assets are divided into current assets and non-current assets.

Current assets include: 

  • Cash and cash equivalents – ₦33,349,831,000 billion. 
  • Receivables from exchange transactions – ₦325,268,000,000 billion. 
  • Receivables from non-exchange transactions – ₦31,961,939,000 billion.
  • Inventory – ₦3,076,959,000 billion.

Non-current assets include: 

  • Available for sale investments – valued at ₦49,665,927,000 billion .
  • Other financial assets – valued at ₦16,453,704,000 billion.
  • Property, plant and equipment (PPE) – valued at ₦2,271,309,527 trillion.

Read: Money

6. Lagos State has total liabilities of 957 billion 

Liabilities are divided into current and non-current liabilities.

Current liabilities include:

  • Payables and other liabilities  – ₦123,543,010 billion .
  • Public funds – ₦434,004,000 million .
  • Public debt (borrowings) – ₦101,234,508,000 billion.
  • Finance lease obligations – ₦2,769,303,000 billion.

Non-current liabilities include: 

  • Public debt (borrowings) – ₦684,608,927,000 billion.
  • Finance lease obligations – ₦3,099,800,000 billion.
  • Retirement benefits obligations – ₦41,857,304,000 billion.

From this breakdown, Lagos State spent ₦134 billion to build infrastructure in 2019. So, spending ₦1 trillion to rebuild the state would equal the state’s capital expenditure for over six years, if we take into account the impact of inflation.

For more on Lagos State’s audited financial statements, check here.

Read: Lagos New Taxes Will Send Everyone Back To Their Village

We hope you’ve learned a thing or two about how to unfuck yourself when the Nigerian government moves mad. Check back every weekday for more Zikoko Citizen explainers.


Zikoko Donation Banner

Help Zikoko keep making the content you love

More than ever, people are turning to Zikoko for stories that matter and content they love. But still, we, like many media organisations, are feeling the financial heat of these times. If you find us valuable, please make a contribution to help keep Zikoko zikoko-ing.

Thank you for your support.

We are also cool with Crypto.

Donation Close
Zikoko Logo

Complete Your Commitment

Donation confirm

Your Contribution is confirmed! Amount

Doyin Olagunju

Join The Conversation

Bring a friend.

You'll like this

May 15, 2020

After mechanics and tailors, dispatch riders come a close second. I have put up with their bad behaviour for too long. Enough is enough and that’s why I have brought this to the court of public opinion. Dispatch riders, please change your ways. 1) “I am at your gate.” Call me before coming. Don’t show […]

Rivers VAT
September 14, 2021

Rivers State generated ₦15 billion from VAT in June 2021, but only got ₦4.7 billion, whereas Kano State generated ₦2.8 billion naira from VAT in June 2021 and got the same ₦2.8 billion naira it made.

This is allyou need to know about the VAT crises:

Watch

Now on Zikoko

Recommended Quizzes

how much of an ajebutter
February 12, 2020

Are you an ajebutter or not? Well, if you’ve gone through life blissfully unaware of its harshness, then you probably are. Now, we want to know just how high you rank on that ajebutter scale, using your food preferences as a (very accurate) measure. Take to find out:

March 24, 2020

While we know that a lot of the best Nigerian artists deservedly have fans across generations, that won’t stop us from attempting to guess how old you are based on your taste in Nigerian music. So, take this quiz to see if we got it right:

November 14, 2019

The fourth season of Big Brother Naija came to an end over a month ago, but the conversation surrounding the housemates is far from over. So, in a bid to keep the fire burning, we decided to create a quiz that tells you which famous member of the ‘Pepper Dem’ gang is your soulmate. Take […]

September 1, 2021

August is over, and here are some of our best quizzes from August. Enjoy: 1. QUIZ: Only Ajebutters Can Get 10/21 On This Quiz Some people like to form ajepako when they’re really ajebutter. Are you one of them? Let’s find out. 2. QUIZ: Sorry, If You’re Under 25 There’s No Way You Can Pass […]

More from Citizen

open grazing
September 16, 2021

In Nigeria, up to 2,000 people die every year due to deadly clashes between farmers and cattle herders over rights to openly and freely graze, and the clashes made about 62,000 people homeless between 2015 and 2017.

In reaction, southern states in Nigeria are passing anti-open grazing laws. But what do they mean?

Rivers VAT
September 14, 2021

Rivers State generated ₦15 billion from VAT in June 2021, but only got ₦4.7 billion, whereas Kano State generated ₦2.8 billion naira from VAT in June 2021 and got the same ₦2.8 billion naira it made.

This is allyou need to know about the VAT crises:

Nigeria Doctors
September 2, 2021

If you live in Nigeria then you have to be careful because three things can strike at any time — thunder, “ASUU” or doctors. Presently, all three of them are in action: It’s the rainy season in Nigeria so of course thunder is present, lecturers under the Academic Staff Union of Universities (ASUU) are already […]

August 27, 2021

On August 14, 2021, unknown armed individuals attacked a convoy of five buses and killed at least 22 travellers along Rukuba Road in Jos North Local Government. According to multiple reports, the victims were returning to Ondo State after attending an Islamic festival in Bauchi state. Reports also say that another 23 people were injured, […]

Watch

Trending Videos

Zikoko Originals

December 14, 2020
What happens when a group of chatty young Nigerians talk about things they're passionate about? You get Nigerians talk. A show that discusses very familiar struggles for the average Nigerian. From relationship deal breakers to sex education with Nigerian parents to leaving Nigeria, be prepared for a ride.
November 2, 2020
'The Couch' is a Zikoko series featuring real life stories from anonymous people.
October 26, 2020
A collection of videos documenting some of the events of the EndSARS protests.
June 22, 2020
'The Couch' is a Zikoko series featuring real life stories from anonymous people.
June 22, 2020
Hacked is an interesting new series by Zikoko made up of fictional but hilarious chat conversations.
June 4, 2020
What happens when a group of chatty young Nigerians talk about things they're passionate about? You get Nigerians talk. A show that discusses very familiar struggles for the average Nigerian. From relationship deal breakers to sex education with Nigerian parents to leaving Nigeria, be prepared for a ride.
June 2, 2020
Quickie is a video series where everyone featured gets only one minute to rant, review or do absolutely anything.
May 14, 2020
Isolation Diary is a Zikoko series that showcases what isolation is like for one young Nigerian working from home due to the Coronavirus pandemic.
March 12, 2020
Life is already hard. Deciding where to eat and get the best lifestyle experiences, isn't something you should stress about. Let VRSUS do that for you.

Z! Stacks

Here's a rabbit hole of stories to lose yourself in:

Zikoko amplifies African youth culture by curating and creating smart and joyful content for young Africans and the world.
X