Lagos State has once again solidified its position as Nigeria’s economic powerhouse, boasting a staggering Gross Domestic Product (GDP) of N44.17 trillion, which accounts for a remarkable 35 per cent of the country’s total GDP, according to the Finance Ministry.
Speaking at the ‘Eko Revenue Plus Summit’ the Minister of Finance and coordinating minister of the Economy, Wale Edun stated that beyond revenues, the appropriate conversation should be how to grow a bigger pie while commending the state on a budget for 2025 of N3.5 trillion.
“But think about it. The GDP of Lagos state, which is an indication of productivity, is at least 35 per cent of the GDP of Nigeria. If that is the case, it means that the resources that Lagos state needs to invest, to grow the economy, provide infrastructure for the people, and to ensure that there is a higher level of quality of life in Lagos, also require that the budget should also be higher, “ the minister who was represented by Dr. Armstrong Ume Takang, Managing Director of the Ministry of Finance Incorporated stated.
He added that the 2025 budget for the federal government is over N40 trillion and challenged Lagos to start thinking of the fact that it cannot just be a large player in terms of GDP, but also in terms of the resources that are being put at the disposal of the people of Lagos states.
The theme of the two-day summit is: ‘Unlocking new revenue streams for Lagos State’.
Corroborating the ministry of finance, Lagos state governor, Babajide Sanwo-Olu said Lagos GDP to the federation, seats between 35 to 60 per cent, depending on what exchange rate is being used in computation.
He explained that the essence is that the state should be doing about N10 to N12 trillion budget size population.
According to him, the N3.05 trillion recently presented 2025 budget is not enough for celebration. However, the budget is typically driven by the capacity of whatever can be generated.
“So you can see that our ability to do more quite frankly depends on our ability to earn more. If we can earn more, we can actually implement a lot more. You know, so that’s one point.
“We want to measure what percentage of the business, commercial, and economic activity of the country truly resides in Lagos,“ Sanwu-Olu stated.
In his remarks, Mr Opeyemi Ogunjobi, Special Adviser to Lagos Governor on Taxation and Revenue, said the summit was conceptualized to provoke initiatives and innovations as a result of the ever-growing need for better services and bridging an infrastructural gap in Lagos state.
According to him, it is designed to begin the journey of building on the traditional way of generating revenue into a realm where “we can achieve exponential growth in our resources.”
He disclosed that the state has designed and adopted a centralized revenue optimization framework to ensure standardization in line with international best practices as it relates to revenue assurance and management systems.
“We have designed and reviewed our revenue processes with the goal of streamlining our processes and optimising our operational system to improve ease of doing business in the revenue value chain to serve our payers, both individual and corporate better.
“With the support of Mr. Governor, we have successfully built and deployed an artificial intelligence bot, called ‘Madam Chikini’ to streamline and automate all inquiries to support payers and provide real-time information to ease the business process of Lagos’ revenue system.
As a state, we have successfully adopted the use of Unique Payer ID for all Lagos payers to ensure compliance and significantly improve our data management in line with data portals initiated by the federal government. As you know, we are always very proactive. Full integration by all revenue-generating MDAs will take place no later than 31st December 2024,” he said.
According to Ogunjobi, the state will be commencing the operation of revenue-dedicated legal infrastructure as part of the initiative to enhance enforcement and compliance by citizens and corporate entities where they are given adequate opportunity to behave where applicable.
“As we continue in the trajectory of delivering a legacy of 21st-century status, taking advantage of tremendous opportunities across our state and remaining consistent in our strive to ensure no resident is left behind, today marks another opportunity to re-emphasize that Mr. Governor will continuously develop innovative solutions, bold decisions and collective action to make Lagos a 21st-century city status, “ he stated.
He emphasised that unlocking new revenue streams for Lagos state is not a task that can be accomplished by any one sector or individual alone.
“It is a collective effort that requires bold leadership, commitment, collaboration, investment and vision which the state governor consistently keeps providing. By focusing on the digital economy and raising the potential of the informal sector, transitioning to a circular economy, capitalising on “our fixed and movable property assets and embracing renewable energy, we are prepared to create a robust, sustainable and prosperous future for our state, “ the special adviser submitted.
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