Lagos unveils 2025 Economic Development Update, focuses on resilient growth

…Lagos needs to boost revenue – Oyedele

The Lagos State Government through the Ministry of Economic Planning and Budget (MEPB), has unveiled the 2025 Lagos Economic Development Update (LEDU), highlighting strategies for economic resilience, fiscal sustainability, and revenue mobilisation.

Speaking at the presentation of the report on Wednesday, Ope George, the commissioner for MEPB, emphasised that the 2025 LEDU provides critical insights to guide policy decisions. He reiterated the state’s commitment to fiscal sustainability, economic diversification, and infrastructure development, aligning with Governor Babajide Sanwo-Olu’s ‘Budget of Sustainability.’

“Themed ‘Lagos Economic Outlook: Charting a Resilient Path Towards a Sustainable Future,’ this year’s LEDU underscores our commitment to evidence-based policymaking, fiscal sustainability, and inclusive development,” George said.

Read also: Lagos moves to strengthen green, circular economy

Delivering the keynote address titled ‘Bridging the Revenue Gap in Lagos: Innovative Pathways to Enhanced Revenue Mobilisation’, Taiwo Oyedele, chairman of the Presidential Fiscal Policy and Tax Reforms Committee, emphasised the need for Lagos to increase its revenue generation to match its economic ambitions.

“Lagos is big, but its revenue is small, collecting less than 2% of GDP,” Oyedele observed. “While some progress has been made, we still have a big room for improvement, and the time to change this narrative is now.”

He highlighted three key strategies for Lagos to improve revenue collection. First, property taxation could unlock billions of naira if inefficiencies in land titling and valuation are addressed.

The tax czar pointed out that cities like Bogotá generate over $1 billion annually from property taxes, while Lagos collects far less despite having one of Africa’s most valuable real estate markets.

Second, he stressed the need to expand the personal income tax base, particularly by leveraging technology to capture high-income earners and the informal sector. Lagos, home to Nigeria’s wealthiest individuals and a booming digital economy, must ensure fair taxation without stifling business growth.

“A better approach to taxation is not to tax the seed, but the fruit. Let businesses grow, and tax them fairly on their successes,” he stated.

He also called for formalizing the informal sector, particularly among digital entrepreneurs, content creators, and event planners, to capture untapped revenue.

Third, Oyedele called for tax harmonisation to simplify the system, improve compliance, and eliminate redundant levies.

“A fragmented tax system breeds confusion and inefficiencies,” he noted, adding that streamlined administration would foster transparency and business confidence.

Oyedele urged bold action, comparing Lagos’ potential to global success stories like Dubai and Singapore. “With the right reforms, Lagos can generate up to N5 trillion annually in Internally Generated Revenue,” he said, stressing the need for leadership, innovation, and collective responsibility.

Speaking earlier while delivering the welcome address, Olayinka Ojo, the permanent secretary of the ministry, highlighted the need for resilience in the face of inflation, global uncertainties, and revenue constraints. He urged stakeholders to collaborate on solutions that would sustain Lagos’ position as Nigeria’s economic hub.

“As the economic nerve center of Nigeria, Lagos continues to set the pace… However, we must address macroeconomic uncertainties, inflationary pressures, fiscal constraints, and global economic headwinds,” Ojo stated.