Lagos Targets ₦2.23 Trillion Tax Revenue to Fund Ambitious Budget

Lagos Targets ₦2.23 Trillion Tax Revenue to Fund Ambitious Budget

The Lagos State Government has set an ambitious goal to generate ₦2.23 trillion in Internally Generated Revenue (IGR) to fund its ₦3.367 trillion budget for 2025. Officials say the state will rely on its tax system rather than heavy borrowing.

Commissioner for Economic Planning and Budget, Ope George, and Finance Commissioner, Abayomi Oluyomi, revealed this plan at a press briefing at the Press Center in Alausa, Ikeja.

The budget projects a total revenue of ₦2.968 trillion, broken down into IGR (₦2.230 trillion), Capital Receipts (₦111.839 billion), and Federal Transfers (₦626.137 billion). This sets a monthly revenue target of ₦247.331 billion for Lagos.

George stated that the Lagos Internal Revenue Service (LIRS) is expected to generate 63% (₦1.4 trillion) of the IGR, while ministries, departments, and agencies (MDAs) will contribute the remaining 37% (₦830.177 billion). To meet this target, the government will use technology, data intelligence, and economic strategies to expand the tax base.

“We see significant revenue opportunities in the informal sector, tourism, real estate, transportation, and trade,” George said.

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Despite the revenue push, Lagos anticipates a ₦398.662 billion budget deficit. The government plans to cover this shortfall through external loans (₦28.751 billion), internal loans (₦203.831 billion), bond issuance (₦150 billion), and other funding sources (₦16.080 billion).

The state has allocated 38% (₦1.296 trillion) of its budget to recurrent expenditure and 62% (₦2.071 trillion) to capital projects. Personnel costs will take ₦401.120 billion, while overhead costs stand at ₦799.511 billion. The government also plans to spend ₦95 billion on debt charges. George noted that personnel costs have risen by ₦146.003 billion compared to 2024 due to planned salary increases meant to cushion the impact of inflation and subsidy removal.

Sectoral allocations include:

• General Public Services: ₦398.4 billion
• Public Order and Safety: ₦91.4 billion
• Economic Affairs: ₦162.5 billion
• Environment: ₦75.8 billion
• Housing and Community Amenities: ₦26 billion
• Health: ₦173.8 billion
• Recreation, Culture, and Religion: ₦37.8 billion
• Education: ₦166.3 billion
• Social Protection: ₦32.8 billion

The budget prioritizes major infrastructure projects, including roads, bridges, transport systems, and housing. Key road projects include the construction and rehabilitation of Samuel Ekundayo/Toga Road (Badagry), Abaranje Road (Alimosho), Adamo-Akanun-Agunfoye Lugbusi Roads (Ikorodu), and the Ikeja GRA road network. Lagos will also rehabilitate the Lekki-Epe Expressway, Opebi Link Bridge to Maryland, and the Lagos-Badagry Expressway. An urban renewal study for the Fourth Mainland Bridge is also planned.

In the transport sector, the government will complete the Abule Egba and Ajah Bus Terminals, build the Iyana-Ipaja Bus Terminal, and expand the Lagos Rail Mass Transit System from Mile 2 to Okokomaiko. It also plans to develop the 68 km Green Line Rail from Marina to the Lekki Free Trade Zone, complete 13 new jetties, and upgrade existing ones to improve water transportation.

Housing remains a priority, with plans to complete 444 units at Sangotedo Phase 2, 420 units at Ajara-Badagry, and 136 units at Ibeshe 2 and Epe. The government is also working on Egan Phase 2 and 3.

For youth development and sports, Lagos will complete stadia in Ikorodu, Badagry, Epe, Ifako-Ijaiye, Ketu, Ibeju-Lekki, Sari Iganmu, and Ajeromi. A permanent National Youth Service Corps (NYSC) camp will also be constructed.

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George emphasized that the 2025 ‘Budget of Sustainability’ is designed to provide economic stability, environmental sustainability, and social equity, ensuring that Lagos remains prosperous for future generations.

The budget is structured around five pillars: infrastructure and environmental sustainability, economic diversification, social inclusion and human capital development, governance, and institutional reforms.