LAGOS, Nigeria — The Lagos State Government says it generated a record ₦2.6 trillion in total revenue in 2025, with Internally Generated Revenue rising to ₦1.87 trillion, strengthening its position as Nigeria’s leading subnational economy.
Commissioner for Finance, Abayomi Oluyomi, disclosed the figures during a ministerial press briefing held at the Bagauda Kaltho Press Centre, Alausa, Ikeja, as part of activities marking the seventh year of Governor Babajide Sanwo-Olu’s administration.
Oluyomi said total revenue increased from ₦2.3 trillion in 2024 to ₦2.6 trillion in 2025, representing a 16 percent growth. He added that IGR rose by 18.5 percent, from ₦1.58 trillion in 2024 to ₦1.87 trillion in 2025.
According to him, the state also recorded a major jump in tax revenue. Lagos Internal Revenue Service collections rose from ₦678.13 billion in 2023 to ₦1.045 trillion in 2024, crossing the ₦1 trillion mark for the first time. Tax revenue then increased further to ₦1.443 trillion in 2025, a 38 percent rise over the previous year.
The commissioner attributed the growth to reforms in tax administration, improved compliance, digital revenue collection systems and efforts to widen the state’s tax base. He said the Sanwo-Olu administration remained focused on building a sustainable revenue model capable of funding Lagos’s growing infrastructure, transport, housing, healthcare and urban renewal needs.
Lagos has long depended more heavily on internally generated revenue than most Nigerian states, reflecting its role as the country’s commercial and financial hub. National Bureau of Statistics data for 2023 showed Lagos as the highest IGR-performing state, with ₦815.86 billion, far ahead of the Federal Capital Territory and Rivers State.
Oluyomi said the government had also maintained a stable debt profile while pursuing capital projects, arguing that revenue growth had helped strengthen fiscal resilience. The government said its reforms were aimed at reducing leakages, improving accountability and ensuring that more residents and businesses contribute fairly to public finances.
The figures come as Lagos faces rising pressure from rapid population growth, congestion, housing shortages, flooding and demand for expanded public services. Analysts say stronger revenue gives the state more room to invest, but also increases public expectations for visible improvements in infrastructure and service delivery.
For the Sanwo-Olu administration, the ₦2.6 trillion revenue performance is being presented as evidence of fiscal discipline and reform. For residents, the key test will be whether the record collection translates into better roads, transport, schools, healthcare and a more liveable city.
