By Funke Cole
For Governor Babajide Sanwo-Olu, his desire to see Lagos emerge as a major socioeconomic hub not only in the country but also in the West African subregion, the continent and worldwide, is not just mere wishful thinking. As he marks his entry into the Diamond era, it is worth looking back into the impacts he has made in the last six years governing the sophisticated state, Lagos.
Indeed, the desire to turnaround the fortunes of the famous Centre of Excellence has always been premised on the social contract Sanwo-Olu signed with the good people of Lagos State who vested him with the mandate, and that explains why, from the oset, especially during his first term in office and now two years into his second term, he continues to place a lot of premium on his economic agenda encapsulated in the now popular phrase T. H. E. M. E. S+,
Sanwo-Olu’s vision has crystalised with the state now eminently occupying the enviable position of the second most thriving economy in Africa after Egypt! It’s instructive to note that since Asiwaju Bola Tinubu’s exit as the governor of Lagos State, successive administrations have pursued his dream to the hilt, especially incumbent Governor Sanwo-Olu. In the last six years, the vision of the forerunner has really come alive.
During his first term, the governor’s action plans, encapsulated in the T. H. E. M.E agenda, saw lots of turnkey projects conceived and delivered. The tempo of activities within the socioeconomic frontiers hasn’t abated, and with the reinforcement of the agenda under the T. H.E.M.E + programme the residents have been the better for it ultimately.
The latest statistics speak to this lofty heights and achievements, which only about two decades away showed no such promises. From available information, Lagos State has cemented its position as one of Africa’s economic powerhouses, with its Gross Domestic Product (GDP) reaching an impressive $259 billion based on purchasing power parity.
Lending credence to the above is the report contained in the Lagos Economic Development Update (LEDU) 2025 unveiled recently by the government. According to the report, the state’s GDP stood at $259.75 billion in 2023. The Lagos economy recorded significant growth in the first half of 2024, expanding to N27.38 trillion, a substantial increase from N19.65 trillion in 2023.
This growth highlights the resilience of Nigeria’s commercial capital amid economic reforms and ongoing infrastructural investments. Despite this growth, the tax-to-GDP ratio remains low at 2.3%, reflecting the need for enhanced revenue mobilisation efforts.
Looking ahead, the state government has set ambitious projections for the 2025 fiscal year, with expectations for further economic expansion and stability. The key assumptions are that the state’s GDP is projected to grow from N54.77 trillion in 2024 to N66.47 trillion in 2025. Real GDP growth is expected to range between 5.02% and 6.49%.
The state government anticipates generating N2.79 trillion in revenue for 2025, emphasising the need for increased fiscal discipline and diversification of revenue sources. Lagos remains a key destination for investors looking to tap into Nigeria’s vibrant economic landscape. The state’s continued economic expansion, coupled with strategic policy interventions, present opportunities in infrastructure development, technology, real estate, and manufacturing.
At the presentation of the report, the Commissioner for Economic Planning and Budget, Mr. Ope George 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 Sanwo-Olu’s “Budget of Sustainability”.
Delivering the keynote address titled. “Bridging the Revenue Gap in Lagos: Innovative Pathways to Enhanced Revenue Mobilisation”, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele emphasised the need for Lagos to increase its revenue generation to match its economic ambitions.
He observed: ‘Lagos is big, but its revenue is small, collecting less than 2% of GDP. 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.
Lagos is called the “Centre of Excellence” for many reasons. The state has many firsts behind it. If you talk about infrastructure, modelling of roads, superhighways designed with aesthetics, state of the arts with latest technology or hitech, Lagos surely leads the pack!
Lagos State has its winning ways and that’s what makes the city centre unique in itself!
In case you missed this: Lagos State has just signed a Memorandum of Understanding (MoU) to cite an International Financial Centre (IFC) in the state. And wait for this: this is going to be the first of its kind in the entire sub Saharan Africa!
The IFC is a financial hub of sorts where everything finance from raising capital, equity for mega deals and turnkey projects are easily accessed without any encumbrances. The centre has legal sectors, judiciaries, and law enforcement authorities that are robust and reliable.
Giving more insights on the proposed IFC being planned for the state, the governor said that his administration was committed to achieving the Lagos IFC and therefore sought everybody’s support to make the vision a reality. He said: ‘We are localising our idea and initiative to be able to also put Lagos and, by extension, Nigeria, on the world map of cities that have international financial centres’.
With the benefits of hindsight, financial pundits who understand the intricacies of operating an international financial centre of the nature being proposed by the state government say that it will bode well for the economy ultimately.
All these and more to come, are some of the hallmarks of Sanwo-Olu’s impactful economic reforms thus. Isn’t Lagos lucky to have a governor like Sanwo-Olu at this time?
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