The Lagos State Government is targeting an Internally Generated Revenue of N1.251 trillion to fund its 2024 budget.
According to the Governor, Babajide Sanwo-Olu during the presentation of the 2024 budget tagged, “Budget of Renewal”, the state projects an IGR of N1.251 trillion plus a total Federal transfer of N596.629 billion to fund its N2.246 trillion budget. This figure represents a 17.35% increase from the N1.066 trillion targeted in the 2023 budget.
During the budget presentation at the Lagos State House of Assembly on December 13, the governor noted that N1.224 trillion, 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.
What you should know
Lagos State has consistently been the state with the highest internally generated revenue in Nigeria for over 20 years. In H1 2023, Lagos State was reported to have generated about N400 billion, while in 2022, the National Bureau of Statistics noted that Lagos generated N651.15 billion, while Rivers State in a distant second generated N172.82 billion in IGR.
The hike in the state’s projected IGR is possibly linked to an improved tax drive, as the state, as well as the Federal Government, targets improved tax collection in the coming fiscal year.
In the 2024 Lagos State budget, there is a 117.56% growth in the targeted total Federal transfer from the 2023 budget.
As VAT makes up a major part of the projected Federal transfer, it is expected that there will be an increased VAT collection drive in the coming year.
Over the past weeks, the Lagos State Internal Revenue Service introduced numerous solutions across different sectors to improve tax collection across Lagos State. Including the introduction of the Eco Fiscal System, which is an automated invoicing solution for revenue collection.
It is also expected that in 2024, there will be intensified efforts by the LIRS to collect the 5% consumption tax imposed on consumables and personal services in Lagos State.