Minister of Finance Wale Edun, has urged Lagos State to lead efforts in expanding Nigeria’s economic base during the Eko Revenue Plus Summit.
Speaking on Tuesday at the two-day Eko Revenue Plus Summit, themed: ‘Unlocking New Revenue Streams for Lagos State’, Edun, represented by the Chief Executive Officer of Nigeria’s Ministry of Finance Incorporated, Dr Armstrong Takang, emphasized the importance of Lagos adopting innovative strategies that extend beyond conventional tax compliance measures.
Edun said, “Lagos accounts for at least 25 per cent of Nigeria’s GDP. With a 2025 state budget of N3.5tn, Lagos must recognise that its economic resources need to match its GDP share. A budget that is small relative to federal allocations, which are over N40tn, cannot adequately provide infrastructure and improve the quality of life for its residents.”
The minister urged the state to adopt policies that focus on broadening its economic base rather than depending solely on tax revenues.
We need to have a bigger conversation around baking a bigger pie. Revenues from taxation alone will not be enough to meet Lagos’ aspirations. The state must prioritize activities that attract investments and expand the economic base,” Edun expounded.
He noted the state’s role as a model for other sub-national governments in Nigeria, noting, “Whenever I consult for governors across the country, they often express a desire to replicate Lagos’ economic strategies. Lagos must set the standard for other states.”
Edun also highlighted the critical role of public-private partnerships in funding large-scale infrastructure projects.
“Even if Lagos devoted its entire budget to capital projects, it would still be insufficient for the infrastructure needs of the state. PPPs and collaboration with international organizations are critical for mobilizing resources and ensuring sustainable development,” he added.
He further highlighted untapped opportunities in digitizing and leveraging land assets to generate substantial revenue streams.
“Lagos must modernize its asset management systems. For example, there are billions of dollars in potential investments tied to the state’s land titles. However, many of these titles are either non-existent or imperfect, creating a gap in revenue generation,” he said.
The minister called for the establishment of a comprehensive asset register to document the state’s properties and intangible assets.
It is not just about knowing what Lagos owes; it’s about understanding what Lagos owns and ensuring these assets generate value,” Edun stated.
Edun also emphasized the importance of stronger collaboration between Lagos State and the federal government. Referring to the recently signed Green Line Project with China.
He noted, “Such large-scale infrastructure projects require significant capital investments that states alone cannot shoulder. Collaborative efforts between state and federal authorities are essential.”
He urged Lagos to explore innovative financing models, including blended finance and capital market instruments, to attract private sector investments.
“For long-term projects like agriculture and housing, Lagos can use its resources at concessional rates to crowd in private sector investments. These initiatives ultimately benefit the state through increased economic activities and tax revenues,” Edun said.
The minister reaffirmed Lagos State’s pivotal role in driving Nigeria’s economic transformation.
