By Comfort James
Emphasizing Lagos State’s distinct role as a catalyst for the country’s economic progress, Minister of Finance and Coordinating Minister of the Economy Wale Edun has urged the state to take the initiative in broadening Nigeria’s economic base.
At the two-day Eko Revenue Plus Summit on Tuesday, which had as its theme “Unlocking New Revenue Streams for Lagos State,” Edun, who was accompanied by Dr. Armstrong Takang, the CEO of Nigeria’s Ministry of Finance Incorporated, emphasized the necessity for Lagos to embrace creative approaches that go beyond conventional tax compliance measures.
At least 25% of Nigeria’s GDP is generated in Lagos. Given the N3.5 trillion state budget for 2025, Lagos must acknowledge that its financial resources must be commensurate with its GDP share.
It is impossible to provide infrastructure and raise the standard of living for its citizens with a budget that is small in comparison to federal allocations, which total over N40 trillion,” he said.
Instead of depending only on tax income, the minister advised the state to concentrate on programs that would broaden its economic basis.In order to bake a bigger pie, we need to have a larger discussion.
Lagos would not be able to achieve its goals with tax revenue alone.
According to Edun, the state needs to give top priority to initiatives that draw in capital and broaden the economy.
“Whenever I consult for governors across the country, they often express a desire to replicate Lagos’ economic strategies,” he said, highlighting the state’s significance as a model for other sub-national governments in Nigeria.
The example for other states must be established by Lagos. Edun underlined how crucial public-private partnerships are to the funding of major infrastructure initiatives.
The state’s infrastructure demands would not be met even if Lagos allocated all of its funds to capital projects.He continued, “PPPs and cooperation with foreign organizations are essential for resource mobilization and guaranteeing sustainable growth.
In order to open up substantial cash sources, he also found unexplored possibilities in digitizing and utilizing land holdings.Lagos’ asset management infrastructure needs to be updated.
The state’s land titles, for instance, have the potential to yield billions of dollars in investments. He added, “But a lot of these titles are either nonexistent or flawed, which leaves a hole in the revenue generation.
“To record the state’s physical and intangible assets, the minister demanded the creation of an extensive asset register.According to Edun, “it is not just about knowing what Lagos owes; it is about understanding what Lagos owns and making sure these assets generate value.
“Edun also emphasized the necessity of closer ties between the federal government and Lagos State.
“Such large-scale infrastructure projects require significant capital investments that states alone cannot shoulder,” he said, referring to the newly inked Green Line Project with China.
Cooperation between federal and state agencies is crucial.In order to draw in private sector investments, he also exhorted Lagos to investigate cutting-edge financing approaches including blended finance and capital market instruments.
Lagos can deploy state resources at concessional rates to attract private sector investments for long-term projects like housing and agriculture.
In the end, these programs help the state by boosting economic activity and tax collections, Edun stated.
The minister concluded by restating the importance of the state in propelling Nigeria’s economic development.
The state must prioritize building a larger economy over merely raising taxes.
He came to the conclusion that Lagos must take the lead in enacting laws that promote the growth of the private sector while guaranteeing fair development for all.
Edun’s comments highlight the crucial role Lagos State has played in determining Nigeria’s economic course and urge the adoption of audacious, creative measures to maintain growth and progress.
