Lagos State Grows Revenue To N1.3 Trillion Amid Plans To Tax Skitmakers And Digital Entrepreneurs

• Lagos state government is determined to drive its internally generated revenue up, and has pooled in over N1.3 trillion in 2024
• The state is on track to do better in 2025 and has already raked in about N333 billion in IGR, despite the low tax compliance
• The government has shared plans to improve the IGR and raise funds for major social infrastructural projects

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

Lagos state’s internally generated revenue (IGR) has surged by 45% from N895 billion in 2023 to N1.3 trillion in 2024.

The state commissioner of finance, Abayomi Oluyomi, stated this at the ministerial press briefing to mark the second year of the second term of the Governor Babajide Sanwo-Olu-led administration.

Oluyomi disclosed that Lagos state had already collected about N333 billion in Internally Generated Revenue, just a few months into 2025.

Oluyomi revealed that fewer than 25% of eligible taxpayers in Lagos pay taxes, with only 700,000 out of the 3 million taxpayers in the database contributing.”

The commissioner urged Lagosians to carry out their civic responsibilities of paying taxes to support the government in carrying out its projects.

Lagos rakes in N14billion in property tax

The commissioner disclosed that his ministry activities had also increased revenue generated from the Land Use Charge by 37% in one year, bringing in N14 billion in property tax in 2024.

He explained that the government had taken the bold step to enumerate over 800,000 properties in the state, and expanded payment options to include POS, USSD, WhatsApp, and other payment platforms.

Despite these efforts, several property owners in Lagos state are still not tax-compliant, PREMIUMTIMES reports.

Lagos state's GDP reaches $259 billion

Oluyomi highlighted that Lagos state’s Gross Domestic Product (GDP) had reached $259 billion, solidifying its position as Nigeria’s leading economic hub and Africa’s largest sub-national economy.

Lagos state's debt-servicing-to-revenue ratio had also improved to 19.2%, the lowest in the country. The total-debt-to-GDP ratio was 3.83% while the total-debt-to-revenue ratio was 172% in 2024.

All of these, he said, contribute to the state’s resilience despite the harsh economic headwinds across the country.

He also addressed the need for inclusive development to reach the slums in the state. To achieve this, Lagos state is set to securitise its idle assets worth up to N3 trillion naira, and fund social infrastructure projects in the state.

The finance commissioner added that the state government had invested about N10 billion in interventions to support the poor and the vulnerable with skill development and economic empowerment.

For instance, the state recently partnered with the Bank of Industry (BoI) and Sterling Bank to provide small business owners with no-collateral loans at single-digit interest rates.

He expressed optimism that the Nigerian economy would recover in 2025, in line with projections from the International Monetary Fund (IMF) and the World Bank.

Lagos state to double tax revenue by including skit makers

Legit.ng earlier reported that Lagos state set a tax revenue target of N2.79 trillion for 2025.

However, Tax Reform chairman Taiwo Oyedele said it was too small as it only amounted to about 2% of the state's GDP.

He identified many revenue gaps and explained how the state could double its tax revenue by including digital entrepreneurs, skitmakers, and content creators in the tax net.

Proofreading by James Ojo, copy editor at Legit.ng.

Source: Legit.ng