Lagos generates more revenue than 31 States put together – Osinbajo

At the Legislative Economic Summit, in Abuja, vice president Yemi Osinbajo said Lagos generates more revenue than 31 others State put together

Nigeria’s vice president, Prof Yemi Osinbajo has stated that Lagos state alone generates more revenue than 31 states put together.

Speaking on at the legislative economic summit themed Legislative Framework for Economic Recovery and Sustainable Development at the International Conference Centre, Abuja today, he urged states to diversify and reduce the reliance on the center.

Osinbajo who narrated how Nigeria gradually slipped in and out of recession suggested that an organised tax regime will possibly help States to be self sufficient.

“Lagos, Rivers and Ogun States have shown what is possible with effective taxation and promotion of industry.

“Lagos generates more revenues now than 31 States put together. The revolution started in 2004 when President Obasanjo seized the local government funds of Lagos State.

“With almost 40% loss of income from FAAC Lagos begun an aggressive reform of its tax system. The results is what we see today, that the State can survive without any recourse to Federal allocation.

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He then went on to explain how Rivers and Ogun have fared. “Rivers States earns roughly N85billon annually, Ogun State earns N72billion,” he said.

Noting that, “Ogun State is somewhat interesting because, unlike Rivers State which has a captive market of oil companies.

“Ogun State has had to aggressively attract industry and use its strategic proximity to Lagos to offer a cheaper deal to investors. So it has been able to ramp up its taxes.

Prof Yemi Osinbajo with members of the national assembly at the Legislative Economic Summit in Abuja

“I think that taxes are so crucial, collecting taxes, VAT, income taxes and corporation taxes will be crucial as we increase our revenues.

“Finally, why is that we cannot afford another recession now or in the future? Simple, every year we are growing at the rate of 2.6% percent per annum.

“We can only create jobs and feed our people if our growth rate is at least double that figure. In other words, if we are able to increase our economy and possibly, double or triple that figure.

“By 2050, we will have the fourth largest population in the world.

“Over 60% of that population will be young men and women who will need education, jobs and a future for their families.

“There is no society yet on earth that has had that size of population and did not have the technology, educational facilities and other infrastructure to sustain it.

“The cost of being the first such nation will be too grave to bear.

“Honorable members, distinguished colleagues, the obligation that history and providence has thrust upon us today is to honestly do all we can to ensure that the future of our people is secure and prosperous.

“We must not walk this path of recession again.”