The Governor of Lagos State, Babajide Sanwo-Olu, has said that over 75 per cent of Lagos’ revenue is generated internally, distinguishing it from other Nigerian states that rely heavily on federal allocations.
The governor, disclosed in a statement on Wednesday at the ongoing Afreximbank’s Trade and Investment Forum in The Bahamas.
The governor explained that the state is responsible for more than a third of Nigeria’s Gross Domestic Product (GDP), making the state the commercial hub of the country.
He further stated that the State’s GDP has grown by almost 50 per cent in the last five years.
According to Sanwo-Olu, the State does not rely on the revenue generated from the center like most sub-nationals in the country.
“Lagos State is one of Nigeria’s 36 States and we are responsible for more than over a third of the nation’s entire GDP. In fact, we have a GDP that is greater than all but seven African countries.
“In the last five years and under my leadership, we have seen almost a 50% growth in our GDP in Lagos alone.
“We also account for about half of the country’s total energy demand. We have over 70% of Nigeria’s foreign trade inflow into Lagos.
“And unlike most other subnational government in Nigeria, over 75% of our revenue are generated internally as opposed to being centrally collected from the national treasury,” Sanwo-Olu said.
In addition, Sanwo-Olu shared how the State was able to construct two-leveled interlink projects that helped boost the State’s economy in the past decades.
According to the governor, these projects include the massive reclamation of the Atlantic Ocean to reduce land erosion and displacement of residents in the State.
He said the projects allowed the State to create a brand new city, the Eko Atlantic city, which has now become a global commercial hub for businesses.
“First, a massive reclamation of the Atlantic Ocean to reduce land loss over the course of the century to the ravaging surge of the ocean.
“Two, the construction of what is now known as the great wall of Lagos. Almost 10 kilometer long stone and concrete barrier to protect the coastline.
According to the latest data from the Nigeria Bureau of Statistics, NBS, Lagos State received a total sum of $29.2 billion in the month of April.
Meanwhile, the State generated the sum of N651 billion as of 2023.
Moreover, the governor said the State is targeting an Internally Generated Revenue of N1.251 trillion to fund its 2024 budget.
According to Sanwo-Olu, N1.224 trillion of the 2024 budget representing 54% of the budget will be spent on capital expenditure, while N1.021 trillion, representing 46% of the budget will be spent on recurrent expenditure.
Lagos State has consistently been the state with the highest internally generated revenue in Nigeria for over 20 years.
