Lagos generates N2.6tn revenue, keeps debt below fiscal risk threshold

The Lagos State Government says it generated a record N2.6 trillion in revenue in 2025, a 16 per cent increase from the N2.3 trillion recorded in 2024, while maintaining what it described as a stable debt profile.

The Commissioner for Finance, Abayomi Oluyomi, disclosed this during the 2026 ministerial press briefing marking the seventh year of the administration of Babajide Sanwo-Olu on Friday.

According to him, Lagos recorded an 85 per cent overall revenue performance in 2025, driven largely by internally generated revenue, which rose from N1.58 trillion in 2024 to N1.87 trillion in 2025.

He added that tax collections also increased significantly, rising from N678.13 billion in 2023 to N1.045 trillion in 2024, then to N1.443 trillion in 2025.

Mr Oluyomi attributed the growth to digital reforms introduced by the Lagos Internal Revenue Service, including upgrades to the e-tax platform, cloud migration, geo-tagging, CAC integration and expatriate tracking through the Nigeria Immigration Service.

He said the government also expanded payment channels through mobile apps, POS terminals, USSD, WhatsApp and online systems to improve tax compliance and ease of payment.

“We have continued to strengthen our fiscal sustainability through prudent debt management, improved revenue generation and strategic financial reforms that support infrastructure development without overburdening public finances,” he said.

On debt sustainability, the commissioner said Lagos maintained a debt-service-to-revenue ratio of 19.2 per cent, below the 30 per cent fiscal sustainability benchmark. In comparison, the state’s debt-to-GDP ratio stood at 4.11 per cent.

He disclosed that the state issued a N230 billion bond at a fixed rate of 16.25 per cent, described as the largest bond issuance by a Nigerian sub-national government.

According to him, proceeds from the bond were invested in transportation, housing, healthcare, agriculture, technology and environmental sustainability projects.

Projects funded include the Opebi Link Bridge, Blue Line Rail Phase II from Mile 2 to Okokomaiko, the Lagos Central Food Security System, Massey Children’s Hospital and the redevelopment of Alaba Rago International Market.

Mr Oluyomi added that Lagos also retained strong credit ratings, with Fitch Ratings reaffirming the state’s AAA national long-term rating with a stable outlook.

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