In a bid to fund its 2024 budget titled “Budget of Renewal,” the Lagos State Government, led by Governor Babajide Sanwo-Olu, is targeting an Internally Generated Revenue (IGR) of N1.251 trillion.
This projection, coupled with a total Federal transfer of N596.629 billion, will contribute to the financing of the N2.246 trillion budget. The announced figure is a notable 17.35% increase from the N1.066 trillion targeted in the 2023 budget.
During the Lagos 2024 budget presentation at the House of Assembly on December 13, Governor Sanwo-Olu outlined the allocation of funds, with N1.224 trillion (54% of the budget) earmarked for capital expenditure and N1.021 trillion (46% of the budget) allocated for recurrent expenditure.
Lagos State has maintained its position as the top contributor to internally generated revenue in Nigeria for over two decades. In the first half of 2023, the state reported an IGR of approximately N400 billion, and in 2022, the National Bureau of Statistics highlighted that Lagos generated N651.15 billion, significantly surpassing other states, with Rivers State ranking second at N172.82 billion in IGR.
The considerable increase in the projected IGR for the upcoming fiscal year is likely attributed to an enhanced tax drive, aligning with the strategic goals of both the state and federal governments to bolster tax collection efforts.
Noteworthy is the 117.56% growth in the targeted total Federal transfer compared to the 2023 budget. With Value Added Tax (VAT) forming a substantial portion of the anticipated Federal transfer, it is anticipated that there will be intensified efforts to boost VAT collection in the coming year.
Recent initiatives by the Lagos State Internal Revenue Service (LIRS) include the introduction of the Eco Fiscal System — an automated invoicing solution aimed at enhancing revenue collection efficiency across the state.
Looking ahead to 2024, the LIRS is expected to focus on robust efforts to collect the 5% consumption tax imposed on consumables and personal services in Lagos State. These measures collectively point to the state’s goal towards financial sustainability and effective revenue mobilisation.
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