Asset Monetisation to Power Lagos’ ₦4.44 Trillion Revenue Target
As Nigeria’s commercial powerhouse continues to flex its economic muscle, Lagos State has unveiled an ambitious plan to generate ₦4.44 trillion in revenue for its 2026 fiscal year by monetizing public assets and deepening revenue-generation strategies. This approach marks a strategic pivot in sub-national finance one that recognizes traditional tax streams alone cannot sustainably fund the state’s development goals.
What’s Driving the Monetisation Agenda?
Traditionally, Lagos State has relied heavily on Internally Generated Revenue (IGR), federal transfers, and occasional bond issuances to fund its budgets. However, as fiscal demands rise particularly for infrastructure, transportation, housing, and economic expansion — state officials are increasingly looking to unlock hidden value within government-owned assets.
At a recent stakeholders’ forum organized by the Lagos State Valuation Office (LASVO), the Commissioner for Energy and Mineral Resources, Biodun Ogunleye, outlined the state’s goal to fully identify, value and monetize its fixed assets ranging from land parcels and idle properties to under-leveraged infrastructure — to boost revenue significantly.
This strategy is rooted in international public sector accounting standards (IPSAS), signaling a shift from cash-based accounting toward asset-driven fiscal planning. Under this framework, Lagos aims to capture a complete and accurate registry of government holdings, correct documentation gaps, and assign market-based values that can be tapped through monetisation initiatives.
Why This Matters for Lagos’s 2026 Budget
Lagos’s ₦4.44 trillion budget for 2026 — recently signed into law and tagged the “Budget of Shared Prosperity” — outlines spending on both recurrent and capital needs, with significant allocations for infrastructure, human development and economic growth
While internally generated revenue remains core to financing this budget, monetisation offers a complementary path to:
Reduce over-reliance on borrowing or excessive taxation, which can stifle economic activity.
Unlock latent value in public assets that previously lay idle.
Improve fiscal sustainability and transparency by aligning asset values with international accounting standards.
Strengthen investor confidence by demonstrating structured, accountable public financial management.
Broader Implications for Lagos’s Economy
Lagos’s monetisation push ties into wider fiscal innovation within the state, where forward-thinking financing tools — including bond issuances and potentially securitization techniques are already gaining traction. For example, Lagos has previously issued green bonds and other hybrid instruments to fund infrastructure and climate projects.
Financial experts argue that these multifaceted revenue strategies position Lagos not just to meet its annual budget targets, but also to build fiscal resilience, attract private capital, and deliver services with greater efficiency.
Conclusion
Lagos State’s pursuit of ₦4.44 trillion through asset monetisation reflects a maturing fiscal landscape where innovative revenue solutions are indispensable. For policymakers, investors and residents alike, this strategy underscores a forward-looking vision — one that transforms state assets into engines of growth while maintaining prudent financial stewardship.
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