The Lagos State Government may implement a N500 entertainment tax, aiming to generate an annual revenue of up to N20 billion.
This initiative, which is part of an effort by the state to raise N5 trillion internally generated revenue (IGR), is set to be a highlight at the upcoming EKO Revenue Plus Summit, scheduled for September 25 and 26, 2024.
The summit, themed “Unlocking New Revenue Streams for Lagos State,” will delve into strategies to enhance the state’s fiscal capacity.
A synopsis document for the summit read: “Entertainment BOX in partnership with a private partner: implement N500 entertainment tax, with 2-3m subscribers, earn N10-N20B annually.”
Other key revenue initiatives
The Lagos State Government’s revenue initiatives also include Content Aggregation Platform and Gateway, Digital Schools Project, BPO and Open TechHub Project, Smart City Infrastructure and Services, and Data Center and Cloud Service.
The Content Aggregation Platform and Gateway aims to create a centralized gateway where content creators can submit their work, and users can access curated content easily. The state government plans to monetize this “platform through subscription models, advertising, sponsored content, and premium features.”
The southwest government also eyes N50 billion annually from Lagos State Government Service and Data Monetization. The document noted that this revenue source will include “Public data marketplace, Data Access licensing and data-driven products and services; Lagos DocVERIFY (Lagos State Document Validation & Verification Platform), , VerifyME (Qualification, Identity, Criminal Record, KYC, etc); Digital notary services; Lagos Credit Bureau – digitalized portal for managing credit rating and credit status; Lagos State e-Court Management System – for Affidavit, Agreement Filing, Courts Case Directory and Virtual Arbitrage and Dispute Settle Platform, plus lot more.”
There is also the Lagos State Digital Schools Project, which will provide quality digital education to students. The project is expected to serve 20,000 students, with each student paying N50,000 per semester. The projected revenue from this initiative is N1 billion.
Lagos State plans to partner with prominent organizations such as Microsoft, Huawei Technologies, Google, MainOne Cable, 21st Century Technologies, and several others.
It also plans to get investments from firms like Partech Africa, Greenhouse Capital, CardinalStone Partners, Chevron Nigeria, Sterling Bank, and others.
What you should know
- Based on the budget performance report of Lagos State for the first quarter of 2024, the southwest state made N87.41 million from the entertainment and hospitality sector in Q1 2024.
- This amount is 30.5% of the state’s budgetary target of N286.15 million from this sector.
- Nairametrics earlier reported that the Lagos State government plans to generate N200 billion annually by expanding its income tax base to include remote workers and leveraging digital solutions for enhanced revenue collection.
- The Lagos State government has set an ambitious target to significantly boost its internally generated revenue (IGR) as part of the Lagos New Money Initiatives.
- The plan aims to propel the IGR to a staggering N5 trillion by unlocking an additional N2.73 trillion stream of revenue.
- This initiative is designed to build upon the existing IGR framework target of N1.25 trillion, thus creating a substantial financial foundation for the state.
