Ministry unveils Lagos economic development update

The Ministry of Economic Planning and Budget has launched the 2025 Lagos Economic Development Update, which highlights the strategies for economic resilience, fiscal sustainability, and revenue mobilisation of the state.

According to a statement from the ministry, the Commissioner for MEPB, Ope George, who spoke at the launch of the report on Wednesday, emphasised that the 2025 LEDU provides critical insights to guide policy decisions.

He reiterated the state government’s commitment to fiscal sustainability, economic diversification, and infrastructure development, aligning with Governor Babajide Sanwo-Olu’s ‘Budget of Sustainability.’

Deputy Chief of Staff of Lagos State, Mr. Sam Egube, in his goodwill message at the event, expressed his delight at the launch of LEDU 2025, pointing out that economic development should be driven from both a gross domestic product and a purchasing power standpoint to reflect the realities of the people.

Egube said that the report will serve as a tool for both government and private sector stakeholders to align their strategies for economic growth. He went on to congratulate the Ministry and Economic Intelligence Department for producing the document, stressing its importance in guiding economic decision-making.

The Special Adviser on Taxation and Revenue, Mr. Abdul-Kabir Ogungbo, in his comments, reaffirmed the Lagos State Government’s dedication to digitising tax collection, saying that the recent launch of the Lagos Revenue Portal was a testament to the administration’s commitment to transparency and a strategic move to earn citizens’ trust.

A major highlight of the event was the keynote speech by the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee,  Taiwo Oyedele, who emphasised the urgency of increasing Lagos State’s revenue generation to meet its economic aspirations.

“Lagos is big, but its revenue is small, collecting less than two per cent of its GDP. While progress has been made, we still have a long way to go,” Oyedele noted.

He outlined three transformative pathways for revenue enhancement including “Property Taxation Reform: Lagos must leverage its vast real estate market by improving land titling and valuation processes to unlock billions of naira in revenue. Cities like Bogotá generate over $1bn annually from property taxes, while Lagos lags despite its high-value real estate. Expanding the Personal Income Tax Base: Leveraging technology to track high-income earners and the informal sector will enhance tax collection efficiency.

“Tax Harmonisation: Streamlining the tax system will reduce redundancies, improve compliance, and enhance business confidence. With the right reforms, Lagos can generate up to N5tn annually in Internally Generated Revenue, positioning itself among global economic powerhouses,” Oyedele concluded.

Meanwhile, the Permanent Secretary of the Ministry, Olayinka Ojo, in her welcome address highlighted the need for resilience in the face of inflation, global uncertainties, and revenue constraints. She urged stakeholders to collaborate on solutions that would sustain Lagos’ position as Nigeria’s economic hub.

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