The Lagos State Government has announced that it generated a record N2.6 trillion in revenue in 2025 while maintaining what it described as a stable and sustainable debt profile amid ongoing infrastructure expansion across the state.

Commissioner for Finance, Abayomi Oluyomi, disclosed this during the 2026 ministerial press briefing marking the seventh anniversary of the administration of Governor Babajide Sanwo-Olu.

According to Oluyomi, the state recorded an 85 per cent overall revenue performance in 2025, with total revenue increasing from N2.3 trillion in 2024 to N2.6 trillion, representing a 16 per cent growth.

He explained that internally generated revenue also rose significantly from N1.58 trillion in 2024 to N1.87 trillion in 2025, reflecting an 18.5 per cent increase driven by digital tax reforms, revenue diversification and improved compliance systems.

The commissioner further revealed that tax collections by the Lagos Internal Revenue Service surpassed the N1 trillion mark for the first time in 2024 before climbing further to N1.443 trillion in 2025.

“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,” Oluyomi said.

He attributed the revenue growth to aggressive digital transformation initiatives, including upgrades to the LIRS e-tax platform with integrations covering stamp duties, capital gains tax filing, Corporate Affairs Commission verification and expatriate tracking through the Nigeria Immigration Service.

Oluyomi added that the state also expanded multiple payment channels such as mobile applications, POS terminals, USSD platforms, WhatsApp and online payment systems to improve taxpayer compliance and ease of payment.

On debt sustainability, the commissioner stated that Lagos currently maintains a debt-service-to-revenue ratio of 19.2 per cent, which remains below the internationally accepted 30 per cent fiscal sustainability threshold.

He also disclosed that the state’s total debt-to-GDP ratio stands at 4.11 per cent, which he described as evidence of a stable and sustainable debt position despite heavy investment in infrastructure.

As part of its financing strategy, Lagos successfully issued a N230 billion bond at a fixed rate of 16.25 per cent, described as the largest bond issuance by any Nigerian sub-national government.

The funds, according to Oluyomi, were deployed into transportation, healthcare, housing, agriculture, science and technology, innovation and environmental sustainability projects.

He also highlighted the state’s N14.815 billion sustainable green bond, which became the first by an African sub-national government to receive certification from the Climate Bond Initiative.

Projects financed through the bond programmes include the Opebi Link Bridge, Blue Line Rail Phase II from Mile 2 to Okokomaiko, redevelopment of the Tolu School Complex, construction of the Massey Children’s Hospital and expansion of Lagos HOMS housing schemes.

Others include the Lagos Central Food Security System, redevelopment of Alaba Rago International Market, installation of 42,000 solar-powered streetlights and construction of a 280-bed multi-specialist Ojo General Hospital.

Oluyomi added that Fitch Ratings reaffirmed Lagos State’s AAA national long-term rating with a stable outlook, reflecting continued investor confidence in the state’s fiscal management.

Despite prevailing economic challenges, the commissioner said Lagos remained committed to strengthening its position as Nigeria’s economic hub through disciplined financial management, technology-driven revenue systems and infrastructure investment under the T.H.E.M.E.S+ development agenda.