The Lagos state governor, Babajide Sanwo-Olu has hinted that the state has the potential to generate between N10-N12trillion as annual budget. The governor spoke at the Eko Revenue Plus Summit 2024 in Lagos, where he along with other experts ventilated their views on how to turnaround the fortunes of the state....TAP TO READ THE FULL CONTENT | TAP TO READ THE FULL CONTENT
According to him, the Lagos state contribution to the GDP is between 35 to 60 per cent, depending on what exchange rate is being used in computation, noting matter-of-factly that the state should be doing about N10 to N12 trillion budget size.
While noting that the N3.05 trillion recently presented 2025 budget was nothing to cheer about Governor Sanwo-Olu, the state can do better in terms of provision of infrastructure.
“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.
Speaking earlier, the Chief Executive Officer of Ministry of Finance Incorporated, Armstrong Takang, who represented Minister of Finance and Coordinating Minister for the economy, Wale Edun, urged Lagos to lead the conversation on growing the economy and techniques of ensuring there is a higher level of tax compliance and increasing revenue.
“In the sense that whatever happens in Lagos symbolises what happens in the Nigerian economy. And the lessons that are learned in that process are lessons other states can borrow from. I do know, by virtue of what I do, that when I consult governors and sub-nationals, they always talk about the fact that we want to do what Lagos is doing,” he said.
He challenged Lagos to not just be a large player in terms of GDP, but also in terms of resources put at the disposal of the people.
He urged the state to recognise that it has a key role in enabling activities of private sectors, which are meant to drive economic growth.
Also the Special Adviser to Governor Babajide Sanwo-Olu on Taxation and Revenue, Opeyemi Ogungbo, said the summit aims at provoking initiatives and innovations to boost revenue drive and support projects.
He said the theme: “Unlocking New Revenue Streams for Lagos State,” was designed to begin the journey of building on our traditional way of generating revenue into a realm where we can achieve growth in our resources.
“We have designed and reviewed our revenue processes with the goal of streamlining our processes and optimising the operational system to improve ease of doing business in the revenue value-chain to serve individual and corporate organisations better.”
Expatiating, Ogunbgo said: “With support of Mr. Governor, we have built and deployed an artificial intelligence tool that automates enquiries to support payers and provide real-time information to stakeholders. We have adopted the use of Unique Payer ID to ensure compliance and improve our data management.”
Ogungbo said digital economy, informal sector, secular economy, property and energy would be key areas of discourse. He said unlocking new revenue streams for the state is not a task that can be accomplished by any one sector.
He said the summit is testament to Lagos’ shared vision of fostering innovation, collaboration, and sustainable growth in revenue systems.
“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.
Commissioner for Finance, Abayomi Oluyomi, said the tax reform bills in the National Assembly would form a point of discussion at the summit.
He said the tax bills would address aspects of taxation, including tax administration, tax protection, among others.
“So, as we deliberate, let us be aware of these tax bills, which are to harmonise the tax system in Nigeria,” Oluyomi said.
He said the robustness of Internet-generated revenue championed and delivered by Sanwo-Olu produced results.
He said Lagos financial management strategy was aligned with its commitment to sustainability, sustainable financing and safeguarding well-being of future generations.
“That is, prioritising projects that promote economic inclusivity, social development, and environmental justice. This revenue summit was designed to ensure every stakeholder sees the value of contributing to our success,” he said. He said although Lagos generates between 40 to 50 per cent of Value Added Tax collectible, but at the end of the day, it gets less than 10 percent of it.
