Edun urges states to monitise assets to drive investment, revenue

MINISTER of Finance and Coordinating Minister of the Economy, Wale Edun, has urged Lagos and other state governments to expand their economic base by leveraging underutilised state-owned assets and liabilities, such as land titles and properties, to attract investments and unlock additional revenue streams.

  The minister also highlighted the need for innovative approaches to bolster Lagos’ economy beyond its current Gross Domestic Product (GDP) contributions, which account for approximately 25 per cent of Nigeria’s total GDP.

  At the Lagos State Eko Revenue Plus Summit 2024, yesterday, themed ‘Unlocking New Revenue Streams for Lagos State’, Edun noted, with Lagos’ 2025 budget projected at N3.5 trillion, a pressing need for increased investment to match the state’s economic scale.
 
  He proposed developing comprehensive registers of state-owned assets and liabilities, fostering private sector growth and implementing systems to monetise underutilised resources.

  According to the minister, while Lagos contributes significantly to Nigeria’s GDP, its budget is only a fraction of the Federal Government’s over N40 trillion budget.

  He advised Lagos to prioritise aligning its resources with its GDP contributions by adopting blended financing models, which include concessionary rates to encourage private sector participation in long-term projects.

  Citing successful initiatives like real estate investment funds as effective public-private collaborations for delivering large-scale projects, he noted: “We discovered significant gaps in revenue collection due to non-digitised land records and uncollected taxes. These inefficiencies limit the state’s ability to fully capitalise on its assets.”

  Edun also emphasised the benefits of Public-Private Partnerships (PPPs), which attract private sector and international investments, blending funds to achieve lower financing costs and greater economic impact.

  He called for stronger partnerships between Lagos and the Federal Government to deliver transformative projects with nationwide benefits. 

  “Lagos must recognise that its success directly impacts Nigeria’s economy. Recent agreements with China on green infrastructure highlight the importance of collaboration for sustainable development,” he added.

  He further revealed that improved asset digitisation and management could generate up to $1 billion for developmental projects.

  Special Adviser to the Lagos Governor on Taxation and Revenue, Opeyemi Ogunjobi, highlighted the state’s progress in modernising its revenue systems through key innovations such as deploying Artificial Intelligence (AI), Unique Payer Identification (ID) portal and enhanced legal frameworks to improve enforcement and compliance.
 
He explained that the advancements were designed to ease business processes, streamline revenue collection and ensure all Lagos residents and businesses contribute their fair share.

  Ogunjobi outlined five strategic sectors identified as drivers of new revenue streams to include digital economy, the informal sector, circular economy initiatives, fixed and movable property assets, and renewable energy expansion. 

  According to him, these sectors could diversify Lagos’ economy, increasing its revenue base by 30 to 40 per cent in the short term and over 75 per cent in the long term.

  On his part, the Commissioner for Finance, Abayomi Oluyomi, showcased significant strides in harnessing Internally Generated Revenue (IGR) to support critical sectors such as food security, education, healthcare and transportation.

  Oluyomi highlighted the vital contributions of the Organised Private Sector (OPS) and Small and Medium Enterprises (SMEs), which serve as the backbone of the state’s economy.
 
  He outlined the key industries driving employment and tax revenue to include financial services, telecommunications, oil and gas, manufacturing, retail, logistics, hospitality and the creative sector.