The Lagos State Government says it generated a record ₦2.6 trillion in total revenue in 2025, with Internally Generated Revenue (IGR) accounting for ₦1.87 trillion.
Gatekeepers News reports that the government attributed the increase to extensive reforms in revenue generation, debt management, and digital tax administration implemented under Governor Babajide Sanwo-Olu’s administration.
Commissioner for Finance, Abayomi Oluyomi, disclosed this during a ministerial press briefing held at the Bagauda Kaltho Press Centre in Alausa, Ikeja, as part of activities marking the seventh anniversary of the administration.
According to Oluyomi, Lagos’ total revenue increased from ₦2.3 trillion in 2024 to ₦2.6 trillion in 2025, representing a 16 per cent growth. He added that IGR also rose by 18.5 per cent, from ₦1.58 trillion in 2024 to ₦1.87 trillion in 2025.
The commissioner further revealed that tax revenue collection climbed significantly from ₦678.13 billion in 2023 to ₦1.045 trillion in 2024 — the first time the Lagos Internal Revenue Service crossed the ₦1 trillion threshold.
He said tax revenue increased further to ₦1.443 trillion in 2025, representing a 38 per cent rise compared to the previous year.
Oluyomi attributed the growth to digital transformation and reforms in tax administration.
“The Lagos State Internal Revenue Service remains focused on broadening the tax base, closing revenue gaps, and fostering long-term revenue growth, all essential to funding the state’s expanding urban and infrastructure requirements,” he said.
The commissioner explained that the state upgraded and expanded the LIRS e-Tax platform to include stamp duties, Capital Gains Tax filing integration, geo-tagging, report builder, Corporate Affairs Commission integration, and expatriate tracking in collaboration with the Nigeria Immigration Service.
He added that the e-Tax mobile application had been migrated to the cloud to improve the security and efficiency of taxpayer data access.
According to him, the state also strengthened multiple payment channels, including mobile platforms, POS terminals, USSD, WhatsApp, and online payment systems, to improve compliance and ease of payment.
Speaking on debt and fund management, Oluyomi said Lagos had maintained fiscal discipline and sustainable debt ratios despite ongoing investments in major infrastructure projects.
“The state government remains committed to infrastructure renewal through a hybrid financing approach that combines medium- and long-term loans with innovative financing mechanisms,” he said.
He disclosed that Lagos successfully issued a ₦230 billion bond — described as the largest by any Nigerian sub-national government — at a fixed rate of 16.25 per cent to finance projects in healthcare, housing, transportation, agriculture, science and technology, and environmental sustainability.
Oluyomi also said the state maintained a Debt-Service-to-Revenue ratio of 19.2 per cent, below the 30 per cent fiscal responsibility threshold, while its Total Debt-to-GDP ratio stood at 4.11 per cent, compared to the World Bank benchmark of 20 per cent.
He noted that the state’s financial management and transparency earned Lagos strong ratings from local and international agencies, with Fitch Ratings reaffirming Lagos’ AAA national rating.
The commissioner listed projects funded through bonds and innovative financing initiatives to include the Opebi Link Bridge, Blue Line Rail Phase II, Massey Children’s Hospital, Lagos HOMS housing schemes, Alaba Rago International Market redevelopment, and the construction of a 280-bed multi-specialist hospital in Ojo.
Despite prevailing economic challenges globally and within Nigeria, Oluyomi said Lagos continued to strengthen its position as the country’s economic hub through strategic fiscal reforms, technology-driven revenue systems, and disciplined financial management.
