The Lagos State Government on Friday announced that it generated a record ₦2.6 trillion in total revenue in 2025, with Internally Generated Revenue (IGR) contributing ₦1.87 trillion.

The government said the feat followed sweeping 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 marking the seventh anniversary of Governor Sanwo-Olu’s administration at the Bagauda Kaltho Press Centre, Alausa, Ikeja.
Oluyomi said the state’s total revenue rose from ₦2.3 trillion in 2024 to ₦2.6 trillion in 2025, representing a 16 per cent increase.

He added that IGR also increased by 18.5 per cent, from ₦1.58 trillion in 2024 to ₦1.87 trillion in 2025.
According to the commissioner, Lagos recorded a significant rise in tax revenue collection, which climbed 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.

He disclosed that tax revenue further increased to ₦1.443 trillion in 2025, representing a 38 per cent growth over the previous year.

Oluyomi attributed the growth to aggressive digital transformation and reforms in tax administration.

“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 said.

He explained that the state 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 collaboration with the Nigeria Immigration Service.

The commissioner added that the e-Tax mobile application had also been migrated to the cloud to provide more secure and efficient access to taxpayer data.

He said multiple payment channels, including mobile platforms, POS terminals, USSD, WhatsApp, and online payment systems, had also been strengthened to improve compliance and ease of payment.

Speaking on debt and funds management, Oluyomi said Lagos had maintained strong fiscal discipline and sustainable debt ratios despite ongoing investments in major infrastructure projects across the state.

“The state government remains committed to infrastructure renewal through a hybrid financing approach that combines medium- and long-term loans with 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 fixed rate of 16.25 per cent to finance projects in healthcare, 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, below the 30 per cent fiscal responsibility threshold, while the state’s Total Debt-to-GDP ratio 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 earned Lagos strong ratings from both local and international agencies, with Fitch Ratings reaffirming Lagos’ AAA national rating.

The commissioner listed major 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, Alaba Rago International Market redevelopment, and the construction of a 280-bed multi-specialist hospital in Ojo.

Oluyomi said that despite prevailing economic challenges both globally and nationally, Lagos had continued to strengthen its position as Nigeria’s economic hub through strategic fiscal reforms, technology-driven revenue systems, and disciplined financial management.