Lagos State, Nigeria’s economic powerhouse, has been urged to expand its economic base and leverage its strategic importance and resource potential. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, emphasised the state’s pivotal role during the Eko Revenue Plus Summit, a two-day event themed “Unlocking New Revenue Streams for Lagos State.” Represented by Dr. Armstrong Takang, the Chief Executive Officer of the Ministry of Finance Incorporated, Edun stressed the need for innovative policies to drive sustainable growth and development.
Acknowledging Lagos’s notable contribution to the nation’s Gross Domestic Product (GDP), with 35%, the minister emphasised the state’s potential to reshape the country’s economic narrative. With a proposed budget of #3.5 trillion for 2025, he urged the state to adopt forward-looking strategies to align its economic resources with its impressive GDP share, underscoring that traditional reliance on Tax revenues alone is insufficient to meet its aspirations. Edun urged Lagos to focus on creating a broader economic base rather than solely increasing tax compliance.
Broadening the economic base beyond taxation is key to driving growth.
He stressed that taxation, while essential, cannot meet the growing demands for infrastructure, improved quality of life, and development. He noted that policies that attract Investment and promote private-sector-led growth are vital. The minister pointed to the state’s position as a model for other regions, underscoring its responsibility to set economic strategy and governance standards. He advocated for public-private partnerships (PPPs) as critical in financing large-scale Infrastructure projects. Given the inadequacy of state budgets to cover massive capital investments, he called for collaboration with international organisations and innovative financing models, such as blended finance and Capital Market instruments, to unlock Private Sector contributions.
These measures, Edun explained, would not only accelerate infrastructure development but also create ripple effects of economic activities and increased revenues. The untapped potential in Lagos’s land assets emerged as a key focus at the summit. Edun identified digitising and modernising the management of these assets as a pathway to unlocking significant revenue streams. He observed that many of the state’s land titles remain imperfect or nonexistent, limiting their potential to attract investments. He called for a comprehensive asset register to ensure the efficient documentation and utilisation of the state’s tangible and intangible properties.
Aiming to leverage assets while embracing digital transformation.
Meanwhile, the region could unlock billions of dollars in revenue by transforming these dormant assets into productive economic tools. Governor Babajide Sanwo-Olu also addressed the summit, emphasising the need for a more ambitious budget that reflects the state’s economic stature. While acknowledging the state’s current #3.5 trillion budget for 2025, he argued that it is modest compared to the resources needed to serve a state, contributing up to 35–60% of Nigeria’s economic activity, depending on currency valuation. Lagos is taking bold steps to integrate Technology into its revenue and economic management systems.
According to Opeyemi Ogunjobi, the Special Adviser to the Governor on Taxation and Revenue, the state has introduced a centralised revenue optimisation framework to align processes with global best practices. The deployment of an AI bot named “Madam Chikini” streamlines inquiries and provides real-time information to taxpayers. The initiative is part of a broader effort to enhance the ease of doing business and improve revenue management. Additionally, the state has implemented a Unique Payer ID system for all residents to ensure compliance and strengthen data management. By the end of 2024, all revenue-generating agencies in the state will fully integrate this system, enhancing efficiency and transparency.
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However, the summit underscored the importance of collaboration in achieving Lagos’s vision of becoming a 21st-century city. Ogunjobi noted that the state focuses on digital innovation, informal sector integration, renewable energy, and transitioning to a circular economy. These efforts aim to build a sustainable and inclusive economic framework that benefits all residents. Edun emphasised the region’s critical role in Nigeria’s economic transformation. He called on the state to prioritise policies that empower the private sector while ensuring equitable development. By adopting bold strategies and promoting partnerships with federal authorities, global organisations, and the private sector, Lagos can pave the way for Nigeria’s economic resurgence.