The Lagos state government has unveiled plans to generate N200 billion annually by expanding its income tax base to include freelancers and influencers.
This initiative, which aims to generate N5 trillion in internal revenue for the state, will be a key topic at the upcoming ‘EKO Revenue Plus Summit’ on September 25 and 26, 2024.
The summit, themed ‘Unlocking New Revenue Streams for Lagos State,’ will explore strategies to boost the state’s fiscal capacity and the use of digital solutions for enhanced revenue collection.
“We have identified four core sub-sectors of the state’s economy with potential for additional revenue generation to help us achieve an additional IGR of about N2.73 trillion,” the government said.
The prioritized sub-sectors are property, the digital economy, the informal sector, and the circular economy. These are supported by energy and IPPs, which serve as catalysts for the state’s economic development.
In the digital economy sector, Lagos state plans to implement a resident global digital citizen tax management system. This system will target remote workers for foreign firms, freelancers, gig workers, influencers, and shared economy operators.
The system will also involve the accreditation and licensing of digital economy practitioners and operators, including platform owners, e-commerce operators, shared economy platforms, online education platforms, marketplaces, and food delivery platforms.
The state aims to generate N200 billion annually from this sector, targeting two million people.
According to the government, the Lagos digital economy is estimated to be worth $20 to $25 billion, representing about 10 percent of the state’s gross domestic product (GDP). The digital economy in Lagos is growing rapidly, with an estimated annual growth rate of 20-25%.
Other revenue targets for the digital economy sector include the digitalization of government services and data monetization, the Lagos state fintech hub, and the Lagos state software development center.
Additional initiatives include the Lagos state digital economy acceleration hub, the Lagos state advertisement network, blockchain and tokenization agenda, and collaboration with the federal government on digital service tax (DST).
