By Kayode Olopade
The Lagos State Government has sustained a stable debt profile while recording significant revenue growth, generating ₦2.6 trillion in 2025 — a 16 per cent increase from the ₦2.3 trillion posted in 2024 — amid ongoing fiscal reforms and improved financial management strategies.
Commissioner for Finance, Mr. Abayomi Oluyomi, disclosed this during the 2026 Ministerial Press Briefing commemorating the seventh year of Governor Babajide Sanwo-Olu’s administration at the Bagauda Kaltho Press Centre, Alausa.
Oluyomi said the state’s ability to maintain debt sustainability despite prevailing economic pressures the strength of its fiscal dunderscoresiscipline, revenue diversification strategy and prudent borrowing framework.
According to him, Lagos recorded an 85 per cent overall revenue performance in 2025, driven largely by growth in Internally Generated Revenue, which rose from ₦1.58 trillion in 2024 to ₦1.87 trillion in 2025, representing an 18.5 per cent increase.
He noted that the state also achieved remarkable growth in tax revenue collections, with earnings rising from ₦678.13 billion in 2023 to ₦1.045 trillion in 2024 — the first time the Lagos Internal Revenue Service crossed the ₦1 trillion mark — before climbing further to ₦1.443 trillion in 2025, indicating a 38 per cent year-on-year increase.
The commissioner attributed the impressive revenue performance to aggressive digital transformation initiatives, including the expansion of the e-Tax platform, deployment of a Revenue AI Chatbot and introduction of multiple payment channels such as mobile applications, POS terminals, USSD, WhatsApp and online payment systems.
He explained that the state had fully transitioned from a hybrid tax filing structure to a completely electronic filing system, a move he said has enhanced transparency, improved efficiency and strengthened taxpayer compliance across Lagos.
Oluyomi stressed that while the state continued to expand its revenue base, it remained committed to maintaining healthy debt indicators in line with global fiscal responsibility standards.
He disclosed that Lagos currently maintains a debt-service-to-revenue ratio of 19.2 per cent, significantly below the 30 per cent fiscal responsibility threshold, while its total debt-to-GDP ratio stands at 4.11 per cent, reflecting what he described as a “stable and sustainable debt position.”
According to him, the government’s cautious borrowing strategy has enabled the state to finance critical infrastructure projects without exposing public finances to excessive debt burdens.
The commissioner revealed that Lagos successfully issued a ₦230 billion bond — described as the largest by any sub-national government in Nigeria — at a competitive fixed rate of 16.25 per cent to support strategic projects in transportation, housing, healthcare, agriculture, innovation and environmental sustainability.
He also highlighted the state’s ₦14.815 billion Sustainable Green Bond, which became the first by an African sub-national government to receive certification from the Climate Bond Initiative.
Oluyomi listed several landmark projects financed through bonds and innovative funding mechanisms, including the Opebi Link Bridge, Blue Line Rail Phase II from Mile 2 to Okokomaiko, reconstruction of the Tolu School Complex, construction of the Massey Children’s Hospital and the Lagos Central Food Security System.
Other projects include the retrofitting of 42,000 streetlights with solar-powered technology, construction of a 280-bed multi-specialist Ojo General Hospital, redevelopment of Alaba Rago International Market, provision of solar power to schools in riverine communities and expansion of Lagos HOMS schemes across Sangotedo, Ibeshe, Egan-Igando and Epe.
The commissioner further disclosed that Lagos retained strong ratings from both local and international credit agencies, with Fitch Ratings reaffirming the state’s AAA national long-term rating with a stable outlook.
Oluyomi added that the Ministry of Finance had continued to prioritise staff welfare, prompt payment of salaries and pensions, capacity development and payroll verification processes aimed at blocking leakages and improving accountability in public finance management.
He reiterated that the ministry remains pivotal to the implementation of the administration’s T.H.E.M.E.S+ agenda by providing the financial stability required to sustain infrastructure delivery, economic growth and improved public services across the state.
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