Lagos State generated a total revenue of N2.6 trillion in 2025, representing a 16 percent increase from the N2.3 trillion recorded in 2024.
The state’s internally generated revenue rose sharply to N1.87 trillion in 2025, up from N1.58 trillion in the previous year, reflecting an 18.5 percent growth.
Tax revenue collection also saw remarkable increases over the past two years. Collections grew from N678.13 billion in 2023 to N1.04 trillion in 2024, marking the first time the state surpassed the N1 trillion benchmark. Tax revenue climbed further to N1.44 trillion in 2025, a 38 percent increase over 2024.
The improved performance was driven by reforms in tax administration and the expansion of digital payment systems. The state has upgraded several payment platforms, including mobile payment channels, point-of-sale terminals, USSD services, WhatsApp integration, and online payment options. Lagos also completed the transition from a hybrid tax filing system to a fully electronic filing system in 2023.
The state maintained a debt-service-to-revenue ratio of 19.2 percent, which remains below the 30 percent fiscal responsibility benchmark. The total debt-to-GDP ratio stands at 4.11 percent, far below the 20 percent threshold recommended by the World Bank.
