- The World Bank yesterday, approved $200 million credit to Lagos State to support a range of reforms pertaining to fiscal sustainability, budget planning, budget execution and the investment climate in the state.
- According to the bank, the facility will help sustain the state’s recent economic growth and poverty reduction while continuing to deliver social services to the city’s expanding population.
- The credit, which was from the International Development Association (IDA) will equally support the Third Lagos State Development Policy Operation, and it is the last in the series of two development policy operations aimed at improving public finances and the investment climate in a fiscally sustainable manner. In the past decade, Lagos State achieved significant economic growth, improved its infrastructure and services, significantly reduced crime and brought millions of people out of poverty.
- According to the World Bank Task Team Leader for the Project, Jariya Hoffman,
“The operation will enhance the state government’s fiscal sustainability by anchoring the budget in a framework that accounts for key fiscal risks and improves revenue collection. Support for adopting a new approach to budget planning and preparation will ensure adequate allocation of budgetary resources to social services such as education and health.
- In addition to budgetary improvements, the project’s support for a reduction in the cost of land transactions as well as the development and introduction of an electronic web-based system for processing of planning permits will help to improve the business climate and attract new investments,” the statement said.