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, as part of activities marking the seventh anniversary of Governor Babajide Sanwo-Olu’s administration.
He said internally generated revenue rose to N1.87 trillion in 2025, up from N1.58 trillion in 2024, reflecting an 18.5 per cent increase.
The commissioner noted that tax revenue collection also recorded significant growth over the past two years.
According to him, tax receipts rose from N678.13 billion in 2023 to N1.04 trillion in 2024, a 54.2 per cent increase that pushed Lagos State Internal Revenue Service above the N1 trillion mark for the first time.
Tax revenue further climbed to N1.44 trillion in 2025, representing a 38 per cent increase compared to the previous year.
Oluyomi attributed the revenue growth to reforms in tax administration and the expansion of digital payment systems designed to improve ease of compliance for residents and businesses.
He explained that the state introduced multiple digital channels, including mobile payments, point-of-sale terminals, USSD services, WhatsApp integration and online platforms to streamline collections.
Lagos State also completed its transition from a hybrid tax filing system to a fully electronic filing system in 2023, with additional digital modules introduced to improve efficiency.
According to the commissioner, the Lagos State Internal Revenue Service (LIRS) remains focused on expanding the tax base, closing revenue gaps and strengthening long-term fiscal sustainability.
He added that these reforms are essential to financing the state’s growing infrastructure and urban development needs.
On fiscal performance, Oluyomi said Lagos maintained a debt-service-to-revenue ratio of 19.2 per cent, which remains below the 30 per cent benchmark under fiscal responsibility guidelines.
He also disclosed that the state’s debt-to-GDP ratio currently stands at 4.11 per cent, significantly below the 20 per cent threshold recommended by the World Bank.
Officials say the figures reflect ongoing efforts to strengthen fiscal discipline while boosting internally generated revenue through technology-driven reforms.
Analysts note that Lagos continues to lead Nigeria’s subnational revenue performance due to its large commercial base and aggressive tax modernisation policies.
