Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has called on Lagos State to take the lead in driving Nigeria’s economic growth. Speaking at the Eko Revenue Plus Summit in Lagos, themed “Unlocking New Revenue Streams for Lagos State,” Edun emphasized the state’s critical role in expanding the country’s economic base through innovative strategies and private sector collaboration.

Represented by Dr. Armstrong Takang, CEO of the Ministry of Finance Incorporated, Edun highlighted Lagos’ economic significance, noting it contributes at least 25% of Nigeria’s GDP. “With a 2025 state budget of N3.5 trillion, Lagos must recognize that its economic resources need to match its GDP share. A budget that is small relative to federal allocations, which are over N40 trillion, cannot adequately provide infrastructure and improve the quality of life for its residents,” he said.

Beyond Tax Revenue: Expanding Economic Opportunities

Edun urged Lagos to shift focus from solely relying on tax revenues to creating policies that expand its economic activities. “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,” he stated.

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He underscored Lagos’ influence as a model for other states, adding, “Governors across the country often express a desire to replicate Lagos’ economic strategies. Lagos must set the standard for other states.”

Leveraging Public-Private Partnerships and Land Assets

The Finance Minister emphasized the importance of public-private partnerships (PPPs) in addressing Lagos’ infrastructure needs. “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,” Edun said.

He also highlighted untapped opportunities in digitizing and managing land assets. “Lagos must modernize its asset management systems. Billions of dollars in potential investments are tied to the state’s land titles, many of which are either non-existent or imperfect,” he explained, urging the establishment of a comprehensive asset register to document the state’s properties and intangible assets.

Strengthening State-Federal Collaboration

Edun called for stronger partnerships between Lagos State and the federal government, citing the Green Line Project with China as a successful example of large-scale infrastructure collaboration. He encouraged Lagos to explore innovative financing models such as blended finance and capital market instruments to attract private sector investments.

“For long-term projects like agriculture and housing, Lagos can use its resources at concessional rates to crowd in private sector investments. These initiatives ultimately benefit the state through increased economic activities and tax revenues,” he added.

A Vision for Equitable Growth

In closing, Edun reiterated Lagos State’s pivotal role in Nigeria’s economic transformation. “The state must focus on creating a bigger economy, not just increasing revenues. Lagos must lead in implementing policies that enable the private sector to thrive while ensuring equitable development across the board,” he concluded.