LASG plans to exceed projected revenue from federal allocations
Lagos State Government may suffer over a N400 billion shortfall from its projected 2025 Internally Generated Revenue (IGR) target.
However, looking at the trend of revenue along with IGR and federal allocations of the 2025 quarters one to three, as published in the state budget performance documents, while the state government might experience a shortfall in its IGR target, it will exceed its projected revenue from federal allocations by the end of the fourth quarter of 2025.
This is because, despite the state government generating N1.34 trillion as IGR within nine months, from January to September 2025, the IGR generated so far is 58.9 per cent of the expected IGR income.
This implied that the state government needs to generate about N940 billion in the fourth quarter to hit its N2.289 trillion 2025 year-end IGR projection.
The N1.34 trillion generated in nine months of 2025 showed that N402.9 billion was generated in the first quarter, N491.5 billion in the second, and N454 billion was generated in the third.
This trend revealed that the state government had not generated up to N500 billion in any of the first three quarters;the best it did was in the second quarter, it generated N491.5b, which was a huge improvement to what was generated in the first quarter, but the IGR for the third quarter fell to N36 billion.
The state government, therefore, needs to generate about double or even above the revenue it generated in the first three quarters to meet its projected 2025 year-end IGR target. This is because the IGR generated in the first and three quarters, if doubled, will not meet the expected N940 billion needed to meet the N2.289 trillion 2025 IGR target. It is only the doubling of the second quarter IGR that the state could meet the IGR target.
The state government has, however, done better in terms of meeting its projected federal allocations and may likely exceed its projection because, as at the end of the third quarter, it has received 94.2 per cent of its N626.1 billion allocation.
While in the first quarter, the Lagos State government received N179.5 billion as federal allocations; it got better in the second quarter as it received N202.3 billion as federal allocation. The third quarter federal allocation was an improvement over the first and second quarters, as the state received N207.88 billion.
