The Lagos State Government has announced a record total revenue of ₦2.6 trillion for the year 2025, with Internally Generated Revenue (IGR) accounting for ₦1.87 trillion. This achievement was made public during a ministerial press briefing marking the seventh anniversary of Governor Babajide Sanwo-Olu's administration at the Bagauda Kaltho Press Centre in Alausa, Ikeja.
Revenue Growth Highlights
Commissioner for Finance, Mr. Abayomi Oluyomi, disclosed that the state's total revenue rose from ₦2.3 trillion in 2024 to ₦2.6 trillion in 2025, representing a 16 percent increase. IGR also saw an 18.5 percent rise, climbing from ₦1.58 trillion in 2024 to ₦1.87 trillion in 2025. Tax revenue collection experienced a significant boost, growing from ₦678.13 billion in 2023 to ₦1.045 trillion in 2024—the first time the Lagos Internal Revenue Service (LIRS) crossed the ₦1 trillion mark. In 2025, tax revenue further increased to ₦1.443 trillion, a 38 percent growth over the previous year.
Digital Transformation and Reforms
Oluyomi attributed the revenue growth to aggressive digital transformation and reforms in tax administration. The LIRS e-Tax platform was upgraded and expanded to include stamp duties, Capital Gains Tax filing integration, geo-tagging, a report builder, Corporate Affairs Commission integration, and expatriate tracking through collaboration with the Nigeria Immigration Service. The e-Tax mobile application was migrated to the cloud for more secure and efficient access to taxpayer data. Additionally, multiple payment channels such as mobile platforms, POS terminals, USSD, WhatsApp, and online payment systems were strengthened to improve compliance and ease of payment.
Fiscal Discipline and Debt Management
Oluyomi emphasized that Lagos maintained strong fiscal discipline and sustainable debt ratios despite ongoing investments in major infrastructure projects. The state government adopted a hybrid financing approach combining medium- and long-term loans with innovative mechanisms. Lagos successfully issued a ₦230 billion bond—the largest by any Nigerian sub-national government—at a fixed rate of 16.25 percent to finance projects in healthcare, housing, transportation, agriculture, science and technology, and environmental sustainability. The Debt-Service-to-Revenue ratio stood at 19.2 percent, below the 30 percent fiscal responsibility threshold, while the Total Debt-to-GDP ratio was 4.11 percent, well under the World Bank benchmark of 20 percent.
Credit Ratings and Major Projects
Prudent financial management earned Lagos strong ratings from local and international agencies, with Fitch Ratings reaffirming its AAA national rating. Major projects funded through bonds and innovative financing include the Opebi Link Bridge, Blue Line Rail Phase II, Massey Children's Hospital, Lagos HOMS housing schemes, Alaba Rago International Market redevelopment, and a 280-bed multi-specialist hospital in Ojo.
Oluyomi concluded that despite prevailing global and national economic challenges, Lagos continues to strengthen its position as Nigeria's economic hub through strategic fiscal reforms, technology-driven revenue systems, and disciplined financial management.
