THE LAGOS EXCEPTIONAL IGR
Lagos is on path of sustainable growth, writes Ade Ogunde
Lagos is the heartbeat of Nigeria. A subnational entity that bears a large chunk of the burden of the country. It is the first state to solely shoulder the responsibility of financing a light rail. The Lagos Blue Light Rail was recently commissioned with excitement from Lagosians and other Nigerians in general. The feat was not a mere achievement by any standard. Lagos set the record as the first subnational entity to successfully undertake and deliver such a capital intensive project. The Babajide Olusola Sanwo-Olu administration that has been breaking new frontiers in infrastructure development also assured Lagosians that the much expected Red Line Rail is 95 percent completed. He said it will be ready for commissioning by December, 2023.
The massive strides of Lagos in the areas of education, health, infrastructure, human capital development, amongst others could not have been possible without a solid financial framework instituted by the government. The credit for the current impressive financial outlook of Lagos is that of the former governor of the state, now President of the Federal Republic of Nigeria, Asiwaju Bola Ahmed Tinubu, the builder of modern Lagos. When he became governor in 1999, Lagos State was earning N600 Million as Internally Generated Revenue. Asiwaju Tinubu reformed the finance structures of Lagos, and re-engineered the tax collection system, leveraging technology. The reforms yielded expected results and the revenue of the state grew to over N6 billion per month when he left office as the governor of Lagos State in 2007.
The solid financial foundation laid by the Bola Tinubu administration in Lagos was what the successive administrations have been building on. Babajide Raji Fashola pushed the IGR higher, Governor Ambode did his best and Babajide Sanwo-Olu expanded the tax net without adding to the burden of Lagosians.
Today, the IGR has increased significantly. In the first half of the year 2023, the state earned a whopping N400 billion as Internally Generated Revenue. This was disclosed by the Commissioner for Economic Planning and Budget, Ope George. He said: “We have a good credit rating and good IGR which can help us attract the right set of investment and funding. So, we have to be very creative with our funding by ensuring it’s a mix of IGR and all the funding mechanisms. We’re looking at PPP’s, and being able to get nice concessions at the right rates. So I think we’re fortunate because we are going in the right direction and, hopefully, we can continue to build on that to attract the right investments and funding to be able to solo-fund our budgets and our projects.”
He added: “We have a huge informal sector and we hope to tap into it to get the benefits therein. It is something the state is very keen to exploit. We have the Lagos State Employment Trust Fund, which helps the small and medium enterprises with loans and grants, and we will continue to build on that. The SME’s are integral parts of our economy. This is why this consultative forum is important – we hear from the people what they need and we act on it because we are better informed. And when the people know what they are getting, they comply more with paying their taxes and levies promptly.
Special adviser to the governor on Economic Planning and Budget, Olalekan Balogun, said the “2024 budget is geared towards the development of the state and its residents through the provision of improved welfare packages that will be commensurate to the present economic landscape, which will focus on adequate and proper distribution of wealth and critical infrastructural development of each division of the state for a more sustainable living.”
It is very certain that the trajectory of development in Lagos will be sustained with the new crop of professionals assembled by Governor Babajide Sanwo-Olu as commissioners and special advisers. They are distinguished men and women who have excelled in their previous careers.
Those who served in the first tenure of Governor Babajide Sanwo-Olu, and the new members of the cabinet came into the job with impressive curriculum vitae and wealth of experience. Professor Akin Abayomi, who manned the Health ministry was a champion during the challenging period of COVID-19 pandemic. Alongside the Incident Commander, Governor Babajide Sanwo-Olu, the Health Commissioner worked creditably well in containing the plaque of Coronavirus.
Gbenga Omotosho, an accomplished journalist and newspaper editor of repute also demonstrated unusual capacity in the management of the public communication and perception management for the government. Lagosians, and other stakeholders are regularly kept informed about the plans and the activities of the government.
Tokunbo Wahaab, the then special adviser on Education, who is now in charge of Environment also delivered. Abisola Olusanya, a young lady in her mid-30’s also performed well when she held sway at the Ministry of Agriculture, the same ministry she got re-appointed. Tunbosun Alake also proved his mettle, ditto for many others who served.
The last lap of the Babajide Sanwo-Olu government will be greater than the former. He started with the commissioning of the Blue Light Rail. Lagosians can only hope for the best under the dynamic leadership of Mr Babajide Olusola Sanwo-Olu and his team.
Ade Ogunde writes from Lagos
