LASG, RMAFC collaborate on economic diversification to boost IGR
The Lagos State Government says it is intensifying efforts to diversify its economy and boost Internally Generated Revenue (IGR) through a partnership with the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC).
The Commissioner for Finance, Mr Abayomi Oluyomi, said this during a visit by the RMAFC to Lagos House in Ikeja on Tuesday.
The RMAFC tour which will be across the 36 states, aims to asses the current efforts of states in terms of policies, programme and projects toward enhancing the diversification of their economy.
According to him, IGR is the backbone of Lagos’ economy and collaboration with RMAFC is crucial for unlocking funding and investment opportunities.
“We are dreaming very big for Lagos State, so that we can get to the objective of what Mr Governor has set out to achieve for the citizens of Lagos State.
“The task of ensuring Lagos State continues to have a robust and diversified income base, driven substantially by IGR, remains predicated on the support, cooperation and collaboration with our partners at the federal level.
“Internally generated revenue is the mainstay of Lagos, and the state remains a trailblazer in the country even as Federal Accounts Allocation (FAAC) share of revenues is shrinking,” he said.
Oluyomi revealed that Lagos had achieved significant IGR growth, increasing it by 70 per cent in five years.
The commissioner noted that the state also aims to further elevate this between 80 per cent or 90 per cent to optimise its revenue potential.
Oluyomi said that the interactive session, attended by critical ministries and agencies of the state government, aimed to harness the state’s resources toward reducing reliance on federal allocations.
He explained that there were several funds available to states that were underutilised due to a lack of awareness, underscoring the importance of RMAFC’s intervention.
The commissioner also highlighted the RMAFC’s role in capacity development to enhance states’ competencies and assist them in diversifying their economic bases, with agriculture, trade, commerce, and information technology as examples.
“I commend you for your commitment to support IGR growth in Lagos State.
“Your willingness to partner with us in this endeavour is a testament to the confidence you have in our state’s potential and the opportunities that lie ahead,” he added.
He noted that the partnership would also help the government to promote growth of small and medium businesses in the state by assisting them to get single interest loans.
Alhaji Ismail Agaka, who led the RMAFC team, noted that one of the commission’s functions is to advise federal and state governments on economic diversification.
“One of the functions of the Revenue, Mobilisation, Allocation, and Fiscal Commission is to advise the federal, state and local governments on how to diversify their economies and collaborate with them in this regard.
“We’ve been doing this for years, including summits with various states, dating back to 2004,” he said.
