Wale Edun, the Coordinating Minister of the Economy and Minister of Finance, has urged Lagos State to lead the effort to broaden Nigeria’s economic base, highlighting the state’s special position as a catalyst for the country’s economic development.
Speaking Tuesday at the two-day Eko Revenue Plus Summit with the theme “Unlocking New Revenue Streams for Lagos State,” Edun emphasised the necessity for Lagos to implement creative approaches that go beyond conventional tax compliance measures. He was accompanied by Dr Armstrong Takang, the CEO of Nigeria’s Ministry of Finance Incorporated.
“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,” he stated.
Instead of depending only on tax income, the minister advised the state to concentrate on programs that would broaden its economic basis.
“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 explained.
He highlighted 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 underlined how crucial public-private partnerships are to the funding of major infrastructure initiatives.
“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.
In order to open up substantial cash streams, he also found unexplored possibilities in digitising and exploiting land holdings.
