Lagos State Governor, Mr Babajide Sanwo-Olu has disclosed the State requires approximately N7 trillion yearly to adequately meet the demands of its residents in infrastructure and economic development.
Speaking at the Eko Revenue Plus Summit 2024, themed “Unlocking New Revenue Streams for Lagos State”, the governor stressed on the need for the State to implement innovative policies to unlock additional revenue streams for sustainable development.
Governor Sanwo-Olu, had last week presented a budget estimates of N3trillion for the year 2025, to the Lagos State House of Assembly.
The summit, held in Lagos on Tuesday, was a collaboration between Modo Ante and the Lagos State Government, supported by Wema Bank as the headline sponsor.
The summit focused on three pillars: innovation, sustainable projects, and shared prosperity, highlighting the government’s resolve to transform Lagos into a model for economic growth and development.
Sanwo-Olu highlighted the state’s budgetary challenges, noting that the 2025 fiscal year budget estimates reveal a gap between required and available revenue.
“The demands of next year’s budget show we need between N6.5 trillion and N7 trillion to meet the yearnings of Lagosians,” he said.
“However, with our current revenue capacity, we have to prioritise based on available funds. Despite this, we maintain a high project implementation rate of 90% to 95% annually.”
He stressed the need for Lagos to earn more to achieve more. “If we can increase our revenue, we can implement significantly more projects to improve the quality of life for Lagosians,” Sanwo-Olu stated.
The governor decried the revenue-sharing formula, citing the disparity between Lagos’s contribution to the national economy and the funds it receives. “Lagos generates 40% to 50% of the VAT in the Federation but receives less than 10% after allocation,” he said. He also called for a derivation formula similar to that of oil-producing states to ensure fairer revenue distribution.
Representing the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, Armstrong Ume Takang underscored Lagos’s pivotal role in the national economy, accounting for 35% of Nigeria’s GDP.
He urged the state to grow its economy beyond taxation by enabling private-sector activities and leveraging innovative tools.
“Lagos must think beyond tax. The focus should be on expanding the economic base through strategies such as blockchain technology, land title optimisation, asset management, and public-private partnerships,” he said.
Takang emphasized the need for Lagos to think outside the box and increase its budget proportionately to its GDP contributions.
The State Commissioner for Finance, Abayomi Oluyomi, revealed that the state depends on federal allocations for only 26% of its revenue.
He outlined the governor’s vision for reducing the dependency on federal allocation through sustainable financing strategies that balance economic inclusivity, social development, and environmental responsibility.
Special Adviser on Taxation and Revenue, Abdul-Kabir Ogungbo, disclosed plans to integrate all revenue-generating agencies by December 2024, streamlining processes to enhance the ease of doing business and improve operational efficiency.
Chairman of the House of Assembly Committee on Finance, Femi Saheed, assured that taxpayers’ funds are being judiciously utilized to benefit the citizenry. He projected that the state’s revenue would grow by 30% in the short term and 70% in the long term through innovative strategies.
