Lagos Bets Big on Assets Monetisation for ₦4.44trn Revenue, Reshapes Fiscal Model
Lagos State is executing one of the most ambitious subnational fiscal resets in Africa: a sweeping move to unlock ₦4.44 trillion in revenue for its 2026 budget through comprehensive asset monetisation. The strategy signals a decisive shift from incremental tax tweaks to a data-driven, asset-led revenue architecture aligned with global public-sector accounting standards.
Speaking at a high-level stakeholders’ forum in Ikeja organised by the Lagos State Valuation Office (LASVO), the Commissioner for Energy and Mineral Resources, Biodun Ogunleye, said the state’s vast but under-documented asset base—land, property and infrastructure—holds the key to sustainably funding Lagos’ expanding obligations.
From Hidden Assets to Bankable Value
At the core of the strategy is a statewide asset census: full identification, documentation and valuation of every public asset, from land parcels and buildings to infrastructure corridors and commercial installations. Ogunleye warned that fragmented land-use records and weak property documentation have historically constrained revenue performance.
“All land, property and infrastructure assets must be captured statewide,” said Biodun Ogunleye, noting that gaps in records directly translate to fiscal leakages.
The state plans to decentralise valuation tasks across divisions and apply combined valuation fees as low as ₦5,000 per asset—a volume-driven approach designed to dramatically expand the revenue net without imposing heavy marginal costs on asset holders. Aggregated at scale, the model is projected to push Lagos past the ₦4.44 trillion threshold required to fund the 2026 budget.
Billboards: The Overlooked Goldmine
In a striking data point, Ogunleye identified neglected and poorly regulated billboards as a potential ₦10 trillion annual revenue stream if properly captured, valued and enforced. The remark underscores a broader policy intent: move beyond traditional tax instruments to micro-monetisation of under-optimised urban assets, especially in advertising, right-of-way usage and public-space commercialisation.
IPSAS: The Accounting Backbone of Reform
This asset monetisation drive is anchored on Lagos’ transition to International Public Sector Accounting Standards (IPSAS)—specifically IPSAS 17, which emphasises asset recognition and valuation. The shift marks a departure from cash-based accounting to an accrual, asset-driven fiscal framework that treats public assets as balance-sheet resources rather than invisible holdings.
The Commissioner for Finance, Abayomi Oluyomi, reaffirmed that Lagos remains Nigeria’s first state to adopt accrual-based IPSAS, a move he said has strengthened fiscal transparency, improved decision-making and enhanced investor confidence.
Lagos’ IPSAS adoption has “deepened accountability and improved the quality of fiscal decisions,” Oluyomi said, positioning the state as a benchmark for subnational governance.
Governance, Not Just Revenue
Beyond revenue generation, Lagos’ asset valuation programme is framed as a governance reform. The Head of Service, Bode Agoro, described infrastructure asset valuation as a milestone for fiscal sustainability and service delivery. Represented by the Permanent Secretary (Finance), Tajudeen Mahmud, Agoro said credible valuations would support maintenance planning, lifecycle costing and evidence-based budgeting.
Technology, Ethics and Professional Collaboration
LASVO’s Director, Adekunle Awolaja, outlined the agency’s evolution, highlighting technology adoption and digital valuation tools as central to scaling the programme. A consultant on the project, Ayodele Oladapo, emphasised the need for strict timelines, professional collaboration and ethical standards to deliver results at the speed Lagos requires.
Stakeholders from the built environment, financial services and transport ministries echoed the call for inter-agency data sharing, tech-enabled asset registers and zero tolerance for valuation malpractice.
Why This Matters
For a megacity-state with ballooning infrastructure demands and a fast-growing population, Lagos’ pivot to asset monetisation is more than a revenue play—it is a structural redefinition of how public wealth is measured and deployed. If executed with discipline, the model could:
- Reduce overreliance on volatile taxes and federal allocations
- Improve creditworthiness and investor confidence
- Create a replicable template for other Nigerian states
In an era of tightening fiscal space, Lagos is betting that what it already owns—properly valued—can fund what it still needs.
