Lagos Hits N1.3 Trillion Revenue Milestone, Boosts Land Use Tax Collection by 37%

Lagos State recorded a significant leap in its internally generated revenue (IGR), pulling in ₦1.3 trillion in 2024 a 45% increase from ₦895 billion in 2023.

This was disclosed by Commissioner for Finance, Abayomi Oluyomi, during the annual ministerial briefing marking the second year of Governor Babajide Sanwo-Olu and Deputy Governor Obafemi Hamzat’s second term in office.

Oluyomi attributed the growth to bold fiscal reforms and innovative financial strategies, positioning Lagos as a clear frontrunner in Nigeria’s economic landscape. He also revealed that the state generated ₦14 billion from Land Use Charge alone in 2024 a 37% jump compared to the previous year.

“Driven by strategic reforms and innovative financial practices, Lagos State has continued to set the pace in revenue generation,” he said. “We closed 2024 with a record-breaking ₦1.3 trillion, a significant increase from the previous year.”

Strong Credit Ratings and Property Tax Challenges

According to the commissioner, Lagos received an A1+ rating from local agencies and a AAA rating from Fitch, underlining the state’s robust financial credibility.

Despite these gains, property tax compliance remains a challenge. Of the 800,000 properties captured in the state’s database, many remain in default on property taxes. To address this, Oluyomi emphasized the need for improved compliance and hinted at upcoming strategies to expand the tax net.

Economic Snapshot: GDP, Debt, and Investment Plans

Oluyomi pegged Lagos State’s Gross Domestic Product (GDP) at $259 billion, reinforcing its status as Nigeria’s economic engine and Africa’s largest sub-national economy.

On the state’s debt metrics, he noted:

• Debt-service-to-revenue ratio: 19.2% (the lowest among Nigerian states)
• Total-debt-to-GDP ratio: 3.83%
• Total-debt-to-revenue ratio: 172%

In an effort to drive new income streams, the commissioner said the government plans to repurpose ₦3 billion worth of idle public assets into revenue-generating investments.

Retiree Payouts, Insurance Recoveries, and Tax Compliance

Between 2024 and 2025, Lagos paid ₦67.9 billion to 20,956 retirees, demonstrating its commitment to pension obligations. In the same period, the government recovered ₦290.43 million from insurance claims linked to damages to public infrastructure.

However, of the three million registered taxpayers, only about 700,000 actively pay taxes. Oluyomi called on more Lagosians to fulfill their tax obligations, stressing that the government would begin using creative strategies to boost compliance and widen the tax base.

“We’re going to explore more innovative ways to raise revenue and ensure more Lagosians pay their fair share,” he said.