Lagos Breaks Revenue Record With ₦2.6tn Earnings in One Year

Lagos State has recorded its highest-ever revenue performance, generating a total of ₦2.6 trillion in 2025, with internally generated revenue rising to ₦1.87 trillion amid sweeping fiscal reforms and aggressive expansion of its digital tax administration systems.

The Commissioner for Finance, Mr. Abayomi Oluyomi, disclosed the figures during the Ministerial Press Briefing held at the Bagauda Kaltho Press Centre in Alausa, Ikeja, as part of activities commemorating the seventh anniversary of Governor Babajide Sanwo-Olu’s administration.

According to Oluyomi, the state’s total revenue increased from ₦2.3 trillion in 2024 to ₦2.6 trillion in 2025, representing a 16 per cent growth within one fiscal year.

He further revealed that Lagos’ internally generated revenue also witnessed significant growth, rising from ₦1.58 trillion in 2024 to ₦1.87 trillion in 2025, reflecting an 18.5 per cent increase.

The commissioner noted that the state also achieved a major milestone in tax collection after the Lagos Internal Revenue Service crossed the ₦1 trillion threshold for the first time.

He explained that tax revenue collection rose from ₦678.13 billion in 2023 to ₦1.045 trillion in 2024 before climbing further to ₦1.443 trillion in 2025, representing a 38 per cent increase over the previous year.

Oluyomi attributed the impressive growth largely to the state government’s investment in digital transformation, improved tax administration and the expansion of electronic payment systems aimed at strengthening compliance.

“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 stated.

He disclosed that the state upgraded and expanded the LIRS e-Tax platform to include several new features such as stamp duties processing, Capital Gains Tax filing integration, geo-tagging, Corporate Affairs Commission integration, report builder services and expatriate tracking through collaboration with the Nigeria Immigration Service.

According to him, the e-Tax mobile application was also migrated to cloud infrastructure to provide taxpayers with safer, faster and more reliable access to tax services and records.

Oluyomi added that the government strengthened multiple payment channels, including mobile payment systems, Point of Sale platforms, USSD services, WhatsApp integration and online payment gateways, all aimed at simplifying tax payment processes and improving compliance rates.

Speaking on debt management and infrastructure financing, the commissioner said Lagos State maintained strong fiscal discipline despite executing several large-scale infrastructure projects across the state.

He explained that the government adopted a hybrid financing structure involving medium and long-term loans alongside innovative funding mechanisms to support strategic development projects.

“The State Government is committed to infrastructure renewal, using a hybrid approach combining medium- to long-term loans and innovative financing mechanisms,” he said.

Oluyomi revealed that Lagos successfully issued a ₦230 billion bond described as the largest bond issuance by any sub-national government in Nigeria.

According to him, the bond was secured at a competitive fixed interest rate of 16.25 per cent and would be used to fund projects in transportation, healthcare, housing, agriculture, environmental sustainability, science and technology.

The commissioner also disclosed that Lagos maintained a Debt-Service-to-Revenue ratio of 19.2 per cent, significantly below the 30 per cent fiscal responsibility benchmark.

He added that the state’s Total Debt-to-GDP ratio stood at 4.11 per cent, which remains comfortably below the World Bank benchmark of 20 per cent.

Oluyomi stated that Lagos’ prudent financial management practices and commitment to transparency earned the state strong ratings from both local and international rating agencies.

He noted that Fitch Ratings recently reaffirmed Lagos State’s AAA national credit rating, reinforcing investor confidence in the state’s financial stability.

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

Despite prevailing economic challenges both locally and globally, Oluyomi said Lagos continued to strengthen its position as Nigeria’s economic powerhouse through technology-driven reforms, disciplined fiscal management and sustained expansion of its revenue base.

He stressed that the government remains committed to deploying available resources toward infrastructure renewal, economic development and improved service delivery for residents across the state.