Lagos, Nigeria’s commercial capital said in its annual financial update that it recorded a total of USD1.02 billion, which is approximately NGN312.820 billion for the full year 2016.
The said amount was realised from internally generated revenue,IGR, a summary of all taxes, levies and income received within the state.
The state saw significant improvement on a year on year basis. Total revenue for 2015 calendar year was NGN247.946 billion. However, the year saw 80% achievement in revenue target and 69% of total revenue for the year.
This means Lagos state realised NGN65 billion increment in IGR revenue year on year representing 26% year on year growth.
The state’s Commissioner for Finance, Mr. Akinyemi Ashade, disclosed that its revenue achieved for 2016 was 75% of the government’s projection for the year. This means the state missed its own estimate for the full year 2016 by 25% year on year.
However, the report shows that Lagos is generating its total revenue from its IGR, a positive news that sets the state apart from other states in Nigeria who rely on monthly federal allocation for over 90% of their revenue source.
Ashade disclosed that the state realised about 72% of its revenue from its IGR. This means about NGN87 billion were realised from non-IGR sources such as federal allocations, investment property etc. The result shows that improvement has been recorded in blocking leakages of tax revenues since the tax net was not really widened when compared to the year 2015.
It was expected in a recessive year that the state will have a significant drop in revenue as with other states in Nigeria. The case of Lagos is expected to be the norm as the present government has been focused on blocking leakages and cutting waste. However, a widening of the tax net is expected to bring about a higher spike.