The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has called on Lagos State to take the lead in expanding Nigeria’s economic base, emphasizing its unique role as the engine of the nation’s 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, highlighted Lagos’ pivotal contribution of 25% to Nigeria’s GDP. He urged the state to adopt innovative strategies to boost its economic base beyond traditional tax measures.
“With a 2025 state budget of N3.5 trillion, Lagos must align its resources with its GDP share. A budget that remains small compared to federal allocations exceeding N40 trillion cannot sufficiently address infrastructure needs or improve residents’ quality of life,” Edun said.
Edun emphasized the need for Lagos to focus on economic expansion rather than solely increasing tax revenues. “Revenues from taxation alone will not meet Lagos’ aspirations. The state must prioritize activities that attract investments and grow the economic base,” he stated.
Positioning Lagos as a model for other sub-national governments, Edun added, “Governors across the country often express a desire to replicate Lagos’ strategies. Lagos must set the standard for economic innovation.”
Recognizing the significant infrastructure deficit, Edun stressed the importance of public-private partnerships. “Even if Lagos devoted its entire budget to capital projects, it would still fall short of meeting its infrastructure needs. PPPs and international collaborations are critical to mobilizing the required resources,” he said.
He further identified untapped opportunities in digitizing land assets, noting that improving land title management could unlock billions of dollars in revenue. “Lagos must modernize its asset management systems. Many land titles are either non-existent or flawed, creating gaps in revenue generation,” he explained.
Edun proposed creating a comprehensive asset register to better manage state properties and intangible assets. “It’s not just about knowing what Lagos owes but understanding what Lagos owns and ensuring these assets generate value,” he asserted.
The minister also urged Lagos to explore alternative financing models such as blended finance and capital market instruments to attract private sector investments. “For projects like agriculture and housing, Lagos can use concessional resources to attract private investments. These initiatives boost economic activity and, in turn, increase tax revenues,” he said.
Edun highlighted the importance of federal-state collaboration in large-scale infrastructure, citing the Green Line Project with China as a prime example of joint efforts yielding significant outcomes.
Concluding his remarks, Edun reiterated Lagos’ role in driving Nigeria’s economic transformation. “Lagos must focus on creating a bigger economy, not just increasing revenues. It must lead with policies that enable private sector growth and ensure equitable development,” he said.
Edun’s speech underscored the need for bold, innovative strategies in Lagos to sustain growth, positioning the state as a cornerstone of Nigeria’s economic future.
