The Lagos State government says it generated N2.6 trillion in total revenue in 2025, representing a 16 per cent increase from the N2.3 trillion recorded in 2024, as authorities pointed to stronger tax collection and expanded digital payment systems.
Commissioner for Finance, Abayomi 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.
According to Oluyomi, the state’s internally generated revenue (IGR) climbed to N1.87 trillion in 2025 from N1.58 trillion in 2024, reflecting an 18.5 per cent increase.
He also revealed that tax revenue collections recorded significant growth over the last two years, rising from N678.13 billion in 2023 to N1.04 trillion in 2024, an increase of 54.2 per cent.
The commissioner said the 2024 performance marked the first time the Lagos State Internal Revenue Service crossed the N1 trillion revenue threshold.
Tax collections rose further to N1.44 trillion in 2025, representing another 38 per cent increase over the previous year.
Oluyomi attributed the growth to reforms in tax administration and the expansion of digital payment infrastructure designed to simplify tax compliance for businesses and residents.
According to him, Lagos upgraded multiple payment channels, including mobile payment systems, point-of-sale terminals, USSD platforms, WhatsApp integration and online payment portals to improve accessibility and ease of transactions.
He added that the state fully migrated from a hybrid filing system to a completely electronic tax filing structure in 2023, while additional digital modules have since been introduced to improve operational efficiency.
“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,” Oluyomi said.
On the state’s fiscal position, the commissioner stated 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 debt-to-GDP ratio stands at 4.11 per cent, significantly lower than the 20 per cent threshold recommended by the World Bank.
Officials say the improved revenue performance is expected to support ongoing investments in transport infrastructure, urban development, healthcare, education and public services across the state.
