By Abubakar Yusuf
Lagos is the commercial and economic nerve of Nigeria, it also serve as a cosmopolitan state of Nigeria because of it’s large portfolios both in social, economic, political and Infrastructural developement in Nigeria and among 36 states of Nigeria and the FCT.
The recent upsurge in it’s revenue base both at the geopolitical level and geometric progression that resulted in it’s attainment of 45 Billion monthly revenue amounting to 7,400% in 2021, down from the 600Million monthly internally generated revenue in 1999, showed it’s strides towards economic and social viability.
A wise assessment of the current revenue status of Lagos State means if as at 1999 60OMillion was 100% revenue generation monthly, the current feat of 45Billiion monthly from 2019-2021 had translated to 7,400% in arithmetic sequence, calculation and equation.
This is different from its first position not only among 36 states in Nigeria including the federal capital territory, but in the south west geopolitical zones, with a revenue base of 267Billion half year followed by FCT trailing with 69Billion, and Rivers as reported by National Bureau of Statistics NBS with 57B, representing over 40% revenue generated by states in Nigeria and FCT, that amounted to 849B.
Coming at a time when bond managers both at local and international level had turned Lagos State as the hub of utilisation of stock funds, with provision of all inclusive infrastructural and social as well as economic development at the top roof level.
With the highest assessment of Bond of 135B from the previous year of 100B and 25B green bond laced with enabling environment, towards accessement of both local and foreign loans, with due dilligence and effective management, recovery and repayment not in doubt.
No doubt, the controversial VAT allocations and generation also saw Lagos State toping the 36 states of Nigeria, including the seat of government in it’s generation that devoid of equal distribution, hence the decision to seek legal redress cum political solution that will give Lagos edge of more funds generation in the area of VAT and other taxes and utilisation.
With Lagos State generating 45B IGR monthly and almost a little ahead of a trillion naira yearly according to NBS, the justification of special status for Lagos State under Governor Babajide Sanwo-Olu oftenly echoed in public functions and gatherings was not out of place, particularly in the last and ongoing town hall meeting organised for the six geopoltical zones, with south west axis held in Lagos to determine both the new revenue formula and fiscal allocations of resources before submission for presidential approval by the Revenue Mobilisation Allocations and Fiscal Commission RMAFC.
Following the modest and model of tax collection of Lagos State overtime, that had being the model of other states of Nigeria, many States and FCT had collaborated on several occasions as the former seat of government to understudy not only the modest tax administration of Lagos State, but deploy the same template to improve revenue generation and collection to enhance it’s capacity and drive at the centre of government in Abuja.
Being and with the status of the old seat of government, maximally utilised by the previous administration and keyed in by the current administration of Governor Babajide Sanwo-Olu, it became a nightmare for FCT that trailed behind in tax collection, adminstration and revenue generation, hence organised many joint seminars, workshops, talkshops, awareness to replicate the magic wand of Lagos state in the FCT.
No doubt, and with the conviction of Lagos State government under Governor Babajide Sanwo-Olu, the 149th joint tax board for 2021 organised by the Federal Inland Revenue Service FIRS, was held in Lagos late this year, 2021 to further collaborate with the state government and it’s operators on the way forward and sustenance of the unrival successes recorded by the state government particularly in the last two years between 2019-2021.
As at today, the revenue profile of Lagos State and it’s systematic policy of generating more is capable of surpassing the current VAT profile collectible by FIRS in Nigeria for distribution to states on both monthly and yearly basis.
There is also an enabling environment for Lagos State government to move the current profile of revenue collections towards a trillion naira in the subsequent years in 2022, and 2023, having gone beyond 20s to 40s in the preceding years on assumption of duty in 2019.
This feat was achievable by Sanwo-Olu’s administration inspite of the spread of social, economic, political and Infrastructural developement across the state of cosmopolitan, Nigeria.
It is also on record that Lagos State is always the destination of any national crises both civil, political and otherwise, even though, concerted efforts are being put in place to nip in the bud, the consequences of Endsars and COVID-19 global health challenges and emergency, including other emergencies was not precluding the current leadership from delivering on it’s mandate within two years.
With strict adherence to T•H•E•M•E•S that covered all round developement, his determination to take Lagos State to greater heights is unwavering in all ramifications by Governor Babajide Sanwo-Olu.
Abubakar Yusuf writes from Abuja and can be reached on yus.abubakar3@gmail.com.
