Lagos State has recorded a total revenue of N2.6 trillion in 2025, representing a 16 per cent increase from the N2.3 trillion generated in 2024, according to the state Commissioner for Finance, Abayomi Oluyomi.
Oluyomi disclosed the figures on Friday during a ministerial press briefing in Alausa, Ikeja, organised to mark the seventh anniversary of the administration of Governor Babajide Sanwo-Olu and Deputy Governor Obafemi Hamzat.
The commissioner said the state’s Internally Generated Revenue rose sharply from N1.58 trillion in 2024 to N1.87 trillion in 2025, reflecting an 18.5 per cent increase driven largely by tax reforms, digital expansion and improved compliance systems.
He also revealed that tax revenue collection crossed major milestones within two years, rising from N678.13 billion in 2023 to N1.045 trillion in 2024 — the first time the Lagos State Internal Revenue Service surpassed the N1 trillion threshold.
According to him, collections climbed further to N1.443 trillion in 2025, representing another 38 per cent increase over the previous year.
Oluyomi attributed the sustained growth to aggressive digital transformation initiatives and the expansion of electronic tax administration platforms aimed at simplifying payment processes for residents and businesses.
“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 had upgraded the LIRS e-Tax platform to include Capital Gains Tax filing integration, stamp duties, geo-tagging systems, Corporate Affairs Commission integration and expatriate tracking through collaboration with the Nigeria Immigration Service.
The commissioner added that Lagos also strengthened multiple payment channels including mobile applications, point-of-sale terminals, USSD services, WhatsApp integration and online payment systems to improve accessibility and taxpayer compliance.
Oluyomi disclosed that the state had fully migrated from a hybrid filing structure to a completely electronic tax filing system since 2023, describing the reform as a major step in improving transparency and operational efficiency.
Speaking on infrastructure financing, the commissioner said the state government continued to deploy a hybrid funding model involving long-term loans, bonds and innovative financing structures to support major projects across sectors.
He revealed that Lagos successfully raised a N230 billion bond at a fixed rate of 16.25 per cent, which he described as the largest bond issuance by any Nigerian sub-national government.
According to him, proceeds from the bond are being channelled into strategic projects 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 Ojo General Hospital.
Oluyomi also defended the state’s borrowing profile, stating that Lagos maintained a debt-service-to-revenue ratio of 19.2 per cent, below the 30 per cent fiscal responsibility benchmark.
He further disclosed that the state’s total debt-to-GDP ratio stood at 4.11 per cent, significantly below the 20 per cent threshold recommended by the World Bank.
The commissioner said Lagos’ fiscal discipline and transparency had continued to attract favourable assessments from credit agencies, adding that Fitch Ratings recently reaffirmed the state’s AAA national rating.
Despite prevailing economic pressures across Nigeria, Lagos has continued to position itself as the country’s leading commercial hub through technology-driven revenue systems, aggressive infrastructure investments and broader fiscal reforms aimed at sustaining long-term economic growth.
