Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has called on Lagos State to spearhead efforts in broadening Nigeria’s economic base, citing the state’s critical position as a driver of national growth.
Speaking at the Eko Revenue Plus Summit on Tuesday, themed “Unlocking New Revenue Streams for Lagos State,” Edun, represented by Dr. Armstrong Takang, CEO of Nigeria’s Ministry of Finance Incorporated, emphasized the need for Lagos to transcend traditional tax-reliant revenue systems by adopting innovative strategies.
“Lagos accounts for at least 25% of Nigeria’s GDP. With a 2025 state budget of N3.5 trillion, Lagos must recognize that its resources need to match its economic significance. A budget this small, compared to federal allocations exceeding N40 trillion, cannot adequately provide infrastructure and improve residents’ quality of life,” Edun remarked.
Edun stressed the importance of policies that expand Lagos’ economic base rather than merely increasing tax collection. “Revenues from taxation alone will not be sufficient to meet Lagos’ aspirations. The focus should shift toward activities that attract investments and enhance the economic ecosystem,” he explained.
Highlighting Lagos’ role as a national economic model, he added, “Whenever I consult for governors across Nigeria, they aspire to replicate Lagos’ strategies. Lagos must continue to set the standard for others.”
The minister underscored the significance of public-private partnerships (PPPs) for funding large-scale infrastructure projects, noting that Lagos’ entire budget would still fall short of its infrastructure needs.
“Collaborating with private investors and international organizations is crucial for mobilizing resources and ensuring sustainable development,” he said.
Edun spotlighted untapped opportunities in modernizing Lagos’ asset management systems, particularly land assets, which he identified as a significant revenue source.
“Billions of dollars in potential investments are tied to Lagos’ land titles. Many of these titles are non-existent or imperfect, creating a gap in revenue generation,” he noted, advocating for a comprehensive asset register to manage state properties effectively.
Edun urged stronger collaboration between Lagos State and the federal government, referencing the Green Line Project with China as an example of large-scale initiatives requiring joint efforts. He also proposed innovative financing models, such as blended finance and capital market instruments, to attract private sector investments for sectors like agriculture and housing.
“These approaches not only secure funding but also stimulate economic activities, leading to long-term gains for the state,” he stated.
In his concluding remarks, Edun reiterated Lagos’ critical role in driving Nigeria’s economic transformation.
“The focus must be on creating a larger economy, not just increasing revenues. Lagos must lead with policies that foster private sector growth and equitable development,” he said.
Edun’s address at the summit highlighted the pivotal role Lagos State plays in shaping Nigeria’s economic future, calling for bold, forward-thinking strategies to sustain growth and enhance its leadership position.
