Lagos revenue hit N2.6tn in 2025, IGR rose by 18.5% - Official

Lagos State achieved a total revenue of N2.6 trillion in 2025, marking a significant 16% increase from the N2.3 trillion generated in 2024. This figure was disclosed by the Commissioner for Finance, Abayomi Oluyomi, during a press briefing commemorating the seventh anniversary of Governor Babajide Sanwo-Olu's administration.

The state's internally generated revenue (IGR) saw a sharp rise of 18.5%, reaching N1.87 trillion in 2025 compared to N1.58 trillion in 2024. Tax revenue collection also experienced remarkable growth, increasing from N678.13 billion in 2023 to N1.04 trillion in 2024, marking the first time the Lagos State Internal Revenue Service (LIRS) surpassed the N1 trillion benchmark. Tax revenue climbed further to N1.44 trillion in 2025, a 38% increase over the prior year.

Commissioner Oluyomi attributed this improved performance to ongoing reforms in tax administration and the expansion of digital payment systems. These initiatives aim to streamline revenue collection for residents and businesses. The state has upgraded various payment platforms, including mobile payment channels, point-of-sale terminals, USSD services, WhatsApp integration, and online payment options to enhance accessibility and compliance.

“

the state’s internally generated revenue rose sharply to N1.87 trillion in 2025, compared to N1.58 trillion in 2024, representing an 18.5 per cent growth.

Lagos State completed its migration to a fully electronic tax filing system in 2023, introducing more digital modules to strengthen operations. The LIRS remains focused on broadening the tax base, closing revenue gaps, and fostering long-term revenue growth, which are essential for funding the state's expanding urban and infrastructure needs.

Financially, Lagos State maintained a debt-service-to-revenue ratio of 19.2%, well below the 30% fiscal responsibility benchmark. The state's total debt-to-GDP ratio stands at 4.11%, significantly below the World Bank's recommended threshold of 20%.

“

Lagos State Internal Revenue Service (LIRS) 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.