Lagos posts N2.6tn revenue, IGR climbs 18.5%

Lagos State generated a total of ₦2.6 trillion in revenue in 2025, representing a 16 per cent increase from the ₦2.3 trillion recorded in 2024, the Commissioner for Finance, Abayomi Oluyomi, has said.

Oluyomi disclosed the figures on Friday during a press briefing in Ikeja, held as part of activities marking the seventh anniversary of Governor Babajide Sanwo-Olu’s administration.

According to the commissioner, the state’s internally generated revenue (IGR) rose significantly to ₦1.87 trillion in 2025, up from ₦1.58 trillion in 2024, reflecting an 18.5 per cent growth.

He noted that tax revenue collections also recorded strong gains over the past two years, increasing from ₦678.13 billion in 2023 to ₦1.04 trillion in 2024 — a 54.2 per cent jump and the first time the Lagos State Internal Revenue Service surpassed the ₦1 trillion mark.

Tax revenue climbed further to ₦1.44 trillion in 2025, representing a 38 per cent increase compared to the previous year.

Oluyomi attributed the improved revenue performance to ongoing reforms in tax administration and the expansion of digital payment systems designed to simplify compliance for residents and businesses.

He explained that the state enhanced multiple payment channels, including mobile platforms, point-of-sale terminals, USSD services, WhatsApp integration, and online payment systems to improve accessibility.

The commissioner added that Lagos had fully transitioned from a hybrid tax filing system to a fully electronic platform in 2023, with additional digital modules introduced to strengthen efficiency.

He said the Lagos State Internal Revenue Service remains focused on expanding the tax base, plugging leakages, and sustaining long-term revenue growth to support the state’s infrastructure and urban development needs.

On fiscal health, Oluyomi disclosed that Lagos maintains a debt-service-to-revenue ratio of 19.2 per cent, below the 30 per cent benchmark, while its debt-to-GDP ratio stands at 4.11 per cent — significantly lower than the 20 per cent threshold recommended by the World Bank.