The Lagos State Government has announced a monumental achievement in its fiscal performance for 2025, recording a total revenue of ₦2.6 trillion. This impressive figure represents a significant milestone, largely driven by the robust Internally Generated Revenue (IGR), which contributed ₦1.87 trillion to the state's coffers. These landmark results are a direct consequence of sweeping reforms implemented in revenue generation, debt management, and digital tax administration under the leadership of Governor Babajide Sanwo-Olu's administration.

Commissioner for Finance, Mr. Abayomi Oluyomi, unveiled these achievements during a ministerial press briefing commemorating the seventh anniversary of Governor Sanwo-Olu's tenure, held at the Bagauda Kaltho Press Centre in Alausa, Ikeja. Oluyomi detailed that the state's total revenue saw a substantial increase of 16 percent, climbing from ₦2.3 trillion in 2024 to ₦2.6 trillion in 2025. Similarly, the IGR experienced an 18.5 percent surge, rising from ₦1.58 trillion in 2024 to ₦1.87 trillion in 2025.

A critical highlight of this financial success story is the significant growth in tax revenue collection. The Lagos Internal Revenue Service (LIRS) notably crossed the ₦1 trillion mark for the first time, with tax revenue reaching ₦1.045 trillion in 2024, a considerable leap from ₦678.13 billion in 2023. This upward trajectory continued into 2025, with tax revenue further increasing to ₦1.443 trillion, marking an impressive 38 percent growth over the previous year. Oluyomi attributed this consistent growth to aggressive digital transformation initiatives and comprehensive reforms within tax administration.

The Commissioner emphasized that the LIRS remains committed to strategically broadening the tax base, effectively closing existing revenue gaps, and fostering sustainable long-term revenue growth. These efforts are deemed essential for adequately funding the state's ever-expanding urban development and critical infrastructure requirements. To this end, the state has significantly upgraded and expanded the LIRS e-Tax platform. Enhancements include the integration of stamp duties and Capital Gains Tax filing, geo-tagging capabilities, a sophisticated report builder, seamless Corporate Affairs Commission integration, and expatriate tracking through a collaborative effort with the Nigeria Immigration Service. Furthermore, the e-Tax mobile application has been migrated to the cloud, ensuring more secure and efficient access to taxpayer data. The state has also strengthened multiple payment channels, including mobile platforms, POS terminals, USSD, WhatsApp, and various online payment systems, all aimed at improving compliance and simplifying the payment process for taxpayers.

Regarding debt and funds management, Oluyomi highlighted Lagos State's unwavering commitment to strong fiscal discipline and the maintenance of sustainable debt ratios. This has been achieved despite the ongoing, substantial investments in major infrastructure projects across the state. The government's strategy for infrastructure renewal involves a hybrid financing approach, combining medium- and long-term loans with innovative financing mechanisms. A testament to this strategy was the successful issuance of a ₦230 billion bond, recognized as the largest by any Nigerian sub-national government, at a fixed rate of 16.25 percent. This bond is specifically earmarked to finance vital projects in diverse sectors such as healthcare, housing, transportation, agriculture, science and technology, and environmental sustainability.

Lagos State has also demonstrated exceptional fiscal prudence by maintaining a Debt-Service-to-Revenue ratio of 19.2 percent, which comfortably sits below the 30 percent fiscal responsibility threshold. Additionally, the state’s Total Debt-to-GDP ratio stands at 4.11 percent, significantly lower than the World Bank's benchmark of 20 percent. This prudent financial management and transparency have garnered strong ratings from both local and international agencies, with Fitch Ratings reaffirming Lagos’ AAA national rating. Major projects funded through these strategic bonds and innovative financing initiatives include the Opebi Link Bridge, Phase II of the Blue Line Rail, Massey Children’s Hospital, various Lagos HOMS housing schemes, the redevelopment of Alaba Rago International Market, and the construction of a 280-bed multi-specialist hospital in Ojo.

In conclusion, despite navigating prevailing economic challenges at both global and national levels, Lagos State has consistently fortified its position as Nigeria’s economic hub. This resilience and growth are largely attributable to its strategic fiscal reforms, the implementation of technology-driven revenue systems, and a disciplined approach to financial management, all contributing to a sustainable development trajectory for the state.