By Kazeem Ugbodaga
The Lagos State Government on Friday said it generated a record ₦2.6 trillion in total revenue in 2025, with Internally Generated Revenue (IGR) rising to ₦1.87 trillion.
This is as the Ministry of Finance intensifies reforms in revenue generation, debt management and digital tax administration under Governor Babajide Sanwo-Olu’s administration.
Commissioner for Finance, Mr. Abayomi Oluyomi, disclosed this during the Ministerial Press Briefing commemorating the seventh year in office of Governor Babajide Sanwo-Olu at the Bagauda Kaltho Press Centre, Alausa, Ikeja.
Oluyomi said the state’s total revenue increased from ₦2.3 trillion in 2024 to ₦2.6 trillion in 2025, representing a 16 per cent growth, while IGR rose by 18.5 per cent from ₦1.58 trillion in 2024 to ₦1.87 trillion in 2025.
According to him, Lagos also recorded a major leap in tax revenue collection, which climbed from ₦678.13 billion in 2023 to ₦1.045 trillion in 2024, marking the first time the Lagos Internal Revenue Service surpassed the ₦1 trillion threshold. He added that tax revenue further surged to ₦1.443 trillion in 2025, reflecting a 38 per cent increase over the previous year.
Oluyomi attributed the growth to aggressive digital transformation and reforms in tax administration.
He said: “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.”
The commissioner explained that the state had 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 through the Nigeria Immigration Service integration.
He added that the e-Tax mobile application had also been 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 had been strengthened to improve compliance and ease of payment.
Speaking on debt and funds management, Oluyomi said Lagos maintained strong fiscal discipline and sustainable debt ratios despite executing major infrastructure projects across the state.
“The State Government is committed to infrastructure renewal, using a hybrid approach combining medium- to long-term loans and 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 competitive fixed rate of 16.25 per cent to finance projects in health, housing, transportation, agriculture, science and technology, and environmental sustainability.
Oluyomi further revealed that 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 him, the state’s prudent financial management and transparency also earned Lagos strong credit ratings from local and international rating agencies, with Fitch Ratings reaffirming Lagos’ AAA national rating.
The commissioner 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.
Oluyomi noted that despite prevailing economic challenges globally and nationally, Lagos continued to strengthen its position as Nigeria’s economic powerhouse through strategic fiscal reforms, technology-driven revenue systems and disciplined financial management.
