Chief Executive Officer of Modo Ante, the firm at the forefront of the Eko Revenue Plus Summit (ERPS), Joko Okupe, speaks to Raheem Akingbolu on various initiatives aimed at transforming revenue generation in Lagos State through innovation, technology, and strategic Public-Private Partnerships.
Can you provide an overview of the Eko Revenue Plus Summit and its objectives?
The Eko Revenue Plus Summit (ERPS) is designed to be a transformative platform for both public and private sector leaders. Its primary goal is to identify and unlock new revenue streams in key sectors like the Property Sector, Digital Economy, Informal Sector, Circular Economy, and Energy Sector. Our focus is not just on expanding the tax base but on creating sustainable value exchange systems that benefit both the government and the private sector as well as improve the life and livelihood of Lagosian.
The initiative was inspired by the need to address Lagos State's growing infrastructure demands and budgetary constraints. The government cannot rely solely on traditional tax methods to meet these needs, so we are looking at how innovation, technology, and PPPs can unlock new revenue sources and drive sustainable economic growth.
How is the Eko Revenue Plus Summit different from other investment and economic summits held in Lagos?
What sets ERPS 2024 apart is its focus on real outcomes. Unlike other summits where discussions often remain theoretical, this summit is designed to lead directly to project activation. One of the standout features is our Post-Summit Round Table, where we will work with technical partners, investors, and government agencies to fast-track the implementation of the ideas and initiatives discussed.
Additionally, the Lagos State government through the office of Special Adviser on Taxation and Revenue in collaboration with other MDA is establishing a Project Facilitation Help Desk to ensure that projects stemming from the summit are not bogged down by public sector bureaucracy. We are also planning to release an Investment Opportunities Playbook post-summit, to help guide investors and technical partners through the various opportunities identified in the summit.
The summit focuses on the Property Sector, Digital Economy, Informal Sector, Circular Economy, and Energy Sector. Could you elaborate on how these sectors will contribute to Lagos' revenue growth?
Yes, because these sectors represent the future of Lagos State's revenue base. Let's start with the property Sector. With a property market valued at over $500 billion, digitalizing property management, building new smart cities and improving land use charge systems will enhance efficiency and unlock new investments. In the area of digital economy, Nigeria's digital economy is projected to exceed $88 billion by 2027, and Lagos will drive much of this growth. Investments in fintech, e-commerce, and digital platforms can turn the digital economy into a major revenue contributor
Of course, the Informal Sector is huge too because it contributes over 60% of Nigeria's GDP. By formalizing this sector through digital platforms and financial inclusion initiatives, Lagos can harness its vast untapped potential. Another important feature of the summit is the circular Economy. Globally, the circular economy is gaining traction. The world is discussing Urban Mining of Waste, and Lagos can lead Africa in this space by adopting sustainable practices that minimize waste and generate revenue from recycling, waste-to-energy, and carbon credits. From there we can be talking of the Energy Sector because Lagos's push for renewable energy projects and waste-to-energy solutions will not only reduce energy deficits but will also generate income from clean energy initiatives.
How does the summit plan to harness innovation and technology to generate revenue without imposing additional tax burdens on citizens?
One of the core pillars of ERPS 2024 is leveraging technology, data harmonization and innovation to improve efficiency and expand the tax base without burdening citizens. For instance, in the Property Sector, we are looking at digital platforms for property enumeration, digital property management, and automated land use charge collections. These systems will help streamline revenue collection while also providing investment opportunities for private players and unlocking dead capital trapped in property within adequate ownership title.
In the Digital Economy, initiatives like data monetization, e-commerce platforms, smart iOT network and fintech solutions can generate revenue by offering services that attract both businesses and residents without increasing taxes. We are also exploring blockchain, AI, and data analytics as tools to optimize revenue collection and reduce inefficiencies.
Public-Private Partnerships (PPPs) are at the heart of this summit. Could you explain how PPPs will be utilized to drive revenue generation in Lagos State?
Public-Private Partnerships (PPPs) play a critical role in our strategy. Through PPPs, we can leverage private sector expertise, efficiency, and capital while the government provides regulatory frameworks and support. For example, in the Energy Sector, PPPs can drive renewable energy projects like solar farms and waste-to-energy plants. These projects will not only address Lagos's energy deficit but also generate significant revenue streams by selling power to businesses and residents.
In the Property Sector, PPPs can help fund large-scale housing projects, smart city developments, business cluster development, housing schemes for registered cooperative and even property bill harmonization platforms. By incentivizing private sector investments, we can unlock revenue without relying solely on taxes.
How do you see the informal economy contributing to the State's revenue base, and what strategies are in place to formalise this sector?
The informal sector in Lagos is massive. It is estimated that over 80% of Lagos' workforce operates in the informal sector, and while this segment drives significant economic activity, it is often difficult for the government to capture revenue from their activities. To unlock this potential, we are focusing on formalizing the sector through digital platforms and financial inclusion initiatives. By partnering with fintech companies and implementing social impact initiatives, we aim to create a supportive environment for informal businesses to transition to the formal sector.
In addition, these partnerships will also facilitate access to essential services such as micro-pension, micro-insurance, and micro-lending programs. We envision a private sector-led effort, in collaboration with the government, to extend social impact initiatives that connect informal workers to healthcare and education services. By also providing financial literacy programs, we can help informal business owners understand the benefits of formalization, such as better access to credit and other government services.
Furthermore, digitalizing processes like market registration and business licensing will streamline operations, reducing bureaucratic barriers for informal businesses. With these systems in place, the government can build a sustainable revenue stream from the informal sector without increasing tax rates. At the same time, formalization will provide businesses with greater access to government support and services, while allowing the state to plan more effectively for this critical part of the economy.
Lagos State has a growing energy deficit. How will the summit address this, and what role will private investors play in the energy sector?
The energy sector is a critical focus for ERPS. Lagos's growing population and industrial activities place heavy demands on energy, and traditional sources can't keep up. Through PPPs, we aim to explore renewable energy solutions, such as solar, wind, and waste-to-energy projects.
Private investors will play a significant role here, bringing in capital and expertise. The state government will offer incentives, such as land and regulatory support, to make these investments attractive. This approach not only addresses the energy deficit but also generates revenue from the sale of renewable energy, benefiting both investors and the state
In terms of property taxes and land use charges, how will the ERPS explore better revenue generation methods without discouraging real estate investment?
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Property taxes and land use charges represent a significant source of revenue for Lagos, but they must be handled with care to avoid discouraging investment. However, it must be stated clearly the property sector in Lagos is undervalued in terms of its revenue potential. At the ERPS, we will discuss strategies and an efficient road map to deal with these issues with a view to attaining a more efficient system.
One option is to focus on digital property management and data harmonization to ensure accurate property enumeration and valuation. By using geospatial technology, we can better categorize properties, streamline tax collection, and reduce underreporting.
To encourage investment, we are considering facilitating conversation around tax incentives for developers working on green building projects or affordable housing. This will ensure that while revenue is generated through property taxes, the real estate sector remains attractive for investors.
The circular economy has been gaining traction globally. How does the summit plan to address this concept, and what benefits does it offer Lagos?
Lagos can lead Africa in sustainable development by adopting a circular economy model. This approach promotes resource efficiency by reusing, recycling, and repurposing materials.
By transitioning to a circular economy, Lagos can reduce waste, lower production costs, and generate new revenue streams. For example, recycling plastics and metals can provide raw materials for local manufacturers, while waste products can be used to generate energy.
Partnerships with technical experts can enable initiatives like carbon credit exchange and green funds, attracting investments and promoting sustainable practices. Implementing Extended Producer Responsibility (EPR) schemes will also encourage producers to design sustainable products and reduce waste.
The private sector is crucial in driving the circular economy. Through partnerships with the State, private companies can access incentives to implement profitable and sustainable circular economy models.
