Lagos IGR rises to N1.3trn, plans to convert N3trn dead assets

By Adeola Ogunrinde

The Lagos State government on Monday announced it generated N1.3 trillion in Internally Generated Revenue (IGR) in 2024, representing a 45 percent increase from the N895 billion recorded in 2023. Commissioner for Finance, Abayomi Oluyomi, disclosed this during the ongoing Ministerial Press Briefing marking the second year of Governor Babajide Sanwo-Olu’s second term, held at Alausa, Ikeja.

Oluyomi said the state has also generated N333 billion so far in 2025. He highlighted key revenue drivers, including the collection of over N14 billion in Land Use Charge (LUC), a 37 percent increase in property tax revenue. The state now has over 800,000 properties on its database following aggressive enumeration campaigns.

To encourage compliance, the government offered a 15 percent LUC discount for early payment and provided exemptions as stipulated by law. Revenue collection has also been made easier through POS, USSD, WhatsApp, and online payment channels.

Commenting on national economic conditions, the commissioner noted that Nigeria remains on a cautious path to recovery, with 2025 GDP growth projections ranging from 3.0 percent (IMF) to 3.6 percent (World Bank), driven by the services sector and improved oil production. However, inflation—forecast to average 26.5 percent—and exchange rate volatility continue to pressure businesses and households.

Oluyomi pointed out that federal revenue collection is also facing shortfalls. While the Federal Government has set a revenue target of N36.35 trillion for 2025, only N1.94 trillion was collected in January—a 31 percent decline from December 2024 figures.

Despite these challenges, Lagos State remains resilient. With a GDP (Purchasing Power Parity) of $259 billion, Lagos continues to be Nigeria’s economic and financial hub, and one of Africa’s largest sub-national economies, according to the commissioner.

He explained that the Lagos Ministry of Finance has implemented strategic financial policies to buffer the state against external shocks, helping it maintain stability and assert leadership in sub-national fiscal management.

Oluyomi also revealed that the state will convert its N3 trillion worth of idle properties across the country into viable assets. “Lagos State is set to convert all identified idle assets into liquidity for infrastructure development through securitisation,” he said.