Femi Ashekun/
Governor Babajide Sanwo-Olu has said that Lagos State now finances more than 60 percent of its annual budget through internally generated revenue (IGR), marking a significant shift towards fiscal sustainability and reduced dependence on federal allocations.
Speaking while hosting the 159th meeting of the Joint Revenue Board at Lagos House, Marina, the governor disclosed that the state generated N1.3 trillion in IGR in 2024, representing a 45 percent increase compared to the previous year.
“Our IGR now finances over 60 percent of the state’s budget,” Sanwo-Olu said, describing the development as a major milestone in Lagos’ efforts to build a resilient and self-sustaining economy.
He noted that the state remains aligned with the national fiscal framework but is pursuing reforms tailored to its position as a key driver of economic activity in Nigeria.
“We are focused on building a more sustainable fiscal system through practical reforms and strong collaboration,” the governor said. “As a key driver of national growth, we understand the need for revenue systems that are fair and easy to engage with.”
Sanwo-Olu explained that the growth in IGR reflects deliberate policy choices aimed at expanding the tax base, improving compliance, and strengthening revenue administration without placing undue burden on residents.
He added that the state’s strategy goes beyond revenue collection, stressing the importance of transparency and accountability in the use of public funds.
“Our ongoing reforms are aimed at improving our IGR while also strengthening public trust and service delivery. The goal is to increase what the state earns, build trust, and ensure that people can clearly see how their money is being used,” he said.
Economic analysts say the increasing reliance on IGR has significant implications for Lagos’ fiscal health.
By generating a larger share of its own revenue, the state is better positioned to fund infrastructure projects, manage recurrent expenditure, and cushion the impact of fluctuations in federal allocations.
The development also reflects broader trends among subnational governments in Nigeria, many of which are under pressure to boost internally generated revenue amid rising fiscal constraints at the federal level.
Sanwo-Olu said Lagos would continue to work with stakeholders to align policies and improve revenue systems, with a focus on translating fiscal gains into tangible improvements in infrastructure, public services, and overall quality of life.
“We will continue to ensure that revenue administration supports real improvements in infrastructure, services and everyday life for the people of Lagos State,” he added.
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