Concerned by the need to ensure Lagos economy remains the flagship for subnational governments across Nigeria, the Federal Government through its Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has kicked started strategic discussions with the State Government to reduce further dependence on monthly funds from the Federal Account Allocation Committee (FAAC).
The discussions are targeted at offering novel ideas that could assist the Lagos government in boosting its Internally Generated Revenue (IGR) by strengthening diversifications of the economy.
Discussions between both governments started hours after the FAAC raised concerns over dwindling revenue from the federal agencies into the central government purse following an increase in unremitted revenues to N4.1 trillion.
The discussion kicked off on Tuesday following a visit of the RMAFC committee on mobilization and diversification led by the Federal Commissioner representing Kwara State, Ismail Agaka, to assess economic diversification projects and programs in the state.
Addressing the visitors at the State House in Ikeja, the Commissioner for Finance, Abayomi Oluyomi, described RMAFC as a strategy ally in Governor Babajide Sanwo-Olu administration’s drive to reduce Lagos’ dependence on federal allocation to a very minimal percentage.
Oluyomi noted that the incumbent governor’s policies and programs were designed to ensure the economy thrives irrespective of the global challenges which formed reasons the government opened its doors to investors.
“The task of ensuring Lagos State continues to have a robust and diversified income base driven substantially by Internally Generated Revenues (IGR) remains predicated on the support, cooperation, and collaboration with our partners at the federal level.
“IGR is the mainstay of Lagos, and the state remains a trailblazer in the country even as the Federal Accounts Allocation (FAAC) share of revenues is shrinking”.
The commissioner added that since Sanwo-Olu’s administration assumed office, 70 percent of the state revenues were generated internally.
“Our payments and collections are built on robust ICT-led foundations, the system is constantly churning out new features including the recent adoption of WhatsApp API protocols for collections, ChatBots, and AI-led intelligence systems for tracking collections. And of course, the newly launched Lagos Revenue Platform”.
Agaka noted that the visit was to engage with the government “to chart the way forward towards achieving a robust economy that would create more employment opportunities, reduce poverty, tackle insecurity, and increase the economic well-being of the citizens.
Meanwhile, he acknowledged the Lagos State Government’s investment in infrastructures, saying this increased Gross Domestic Product (GDP).
Agaka noted that this aided the increment of its GDP from N27 trillion to N41 trillion within five years.“Lagos is a trailblazer when it comes to financial strength and also the fiscal economy. So that’s why we’re here,” he said.
According to him, the commission’s objective to collaborate with Lagos State and identify areas where it has shown exceptional performance.
“We know there are areas where Lagos State has really shown itself to be a trailblazer. So based on what we know, vis-a-vis what is now present, to be able to conclude as to how well Lagos is faring,” he said.
The commissioner highlighted the importance of learning from Lagos State’s best practices to advise other states.
“When we talk about best practices, it’s to see what is working very well here, so as to advise others that look. Make Lagos State a role model for you in this specific area,” he added.
