By Amaka Eze
Lagos State 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 Commissioner for Finance, Abayomi Oluyomi.
Oluyomi disclosed the figures on Friday during a press briefing in Alausa, Ikeja, held as part of activities marking the seventh anniversary of Governor Babajide Sanwo-Olu’s administration.
He explained that the state’s internally generated revenue (IGR) rose sharply to N1.87 trillion in 2025, compared to N1.58 trillion in 2024, reflecting an 18.5 per cent growth.
Tax Revenue Milestones
Tax collections also witnessed significant growth over the past two years.
- In 2023, collections stood at N678.13 billion.
- By 2024, they surged to N1.04 trillion, marking a 54.2 per cent rise and the first time the Lagos State Internal Revenue Service (LIRS) crossed the N1 trillion benchmark.
- In 2025, tax revenue climbed further to N1.44 trillion, a 38 per cent increase over the previous year.
Oluyomi attributed the improved performance to reforms in tax administration and the expansion of digital payment systems designed to make revenue collection easier and more efficient for residents and businesses.
Digital Transformation in Revenue Collection
The commissioner noted that Lagos upgraded several payment platforms, including mobile payment channels, point-of-sale terminals, USSD services, WhatsApp integration, and online payment options to enhance accessibility and compliance.
He added that the state completed its migration from a hybrid tax filing structure to a fully electronic filing system in 2023, with additional digital modules introduced to strengthen operations.
“LIRS remains focused on broadening the tax base, closing revenue gaps, and fostering long-term growth, all essential to funding the state’s expanding urban and infrastructure needs,” Oluyomi said.
Fiscal Position
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 benchmark.
He also stated that the state’s debt-to-GDP ratio currently stands at 4.11 per cent, far below the 20 per cent threshold recommended by the World Bank, underscoring Lagos’ strong fiscal position.