Lagos Generates ₦2.6 Trillion in Revenue, with Internally Generated Revenue Reaching ₦1.87 Trillion

The Lagos State Government announced a record-breaking total revenue of ₦2.6 trillion in 2025, with Internally Generated Revenue (IGR) reaching ₦1.87 trillion, as disclosed by Commissioner for Finance, Mr. Abayomi Oluyomi, during a ministerial press briefing.

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This briefing was held to commemorate the seventh year in office of Governor Babajide Sanwo-Olu and his deputy, Dr. Obafemi Hamzat, at Alausa, Ikeja, where Oluyomi revealed the state's total revenue had increased by 16 per cent from ₦2.3 trillion in 2024 to ₦2.6 trillion in 2025.

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Furthermore, IGR experienced an 18.5 per cent rise from ₦1.58 trillion in 2024 to ₦1.87 trillion in 2025, according to Oluyomi, who attributed the growth to the state's aggressive digital transformation and reforms in tax administration.

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Lagos also achieved a significant milestone in tax revenue collection, which jumped from ₦678.13 billion in 2023 to ₦1.045 trillion in 2024, surpassing the ₦1 trillion threshold for the first time, with the Lagos Internal Revenue Service collecting ₦1.443 trillion in 2025, a 38 per cent increase over the previous year.

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Oluyomi stated that the Lagos State Internal Revenue Service is committed to expanding the tax base, closing revenue gaps, and promoting long-term revenue growth to fund the state's urban and infrastructure needs.

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The commissioner explained that the state had enhanced and expanded the LIRS e-Tax platform to include features such as stamp duties, Capital Gains Tax filing integration, geo-tagging, report builder, Corporate Affairs Commission integration, and expatriate tracking through the Nigeria Immigration Service integration.

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In addition, the e-Tax mobile application was migrated to the cloud to provide more secure and robust access to taxpayer data, while multiple payment channels, including mobile, POS, USSD, WhatsApp, and online payment systems, were strengthened to improve compliance and ease of payment.

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Regarding debt management, Oluyomi said that Lagos maintained strong fiscal discipline and sustainable debt ratios despite executing major infrastructure projects across the state, using a hybrid approach combining medium- to long-term loans and innovative financing mechanisms.

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The State Government issued a ₦230 billion bond at a competitive fixed rate of 16.25 per cent to finance projects in health, housing, transportation, agriculture, science and technology, and environmental sustainability, as disclosed by Oluyomi.

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Lagos maintained a Debt-Service-to-Revenue ratio of 19.2 per cent, well below the 30 per cent fiscal responsibility threshold, while total debt-to-GDP stood at 4.11 per cent compared to the World Bank benchmark of 20 per cent, according to Oluyomi.

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The state's prudent financial management and transparency earned Lagos strong credit ratings from local and international rating agencies, with Fitch Ratings reaffirming Lagos' AAA national rating, as noted by the commissioner.

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Oluyomi listed several landmark projects funded through bonds and innovative financing initiatives, including the Opebi Link Bridge, Blue Line Rail Phase II, Massey Children’s Hospital, Lagos HOMS schemes, Alaba Rago International Market redevelopment, and the construction of a 280-bed multi-specialist Ojo General Hospital.

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Despite global and national economic challenges, Lagos continued to strengthen its position as Nigeria's economic powerhouse through strategic fiscal reforms, technology-driven revenue systems, and disciplined financial management, according to Oluyomi.