Lagos revenue hits N807bn in early 2026

By Adeola Ogunrinde

The Lagos State Government, in a recent report, said its 2026 first quarter budget performance showed that internally generated revenue contributed N536.37 billion, representing the largest share of earnings recorded by any state within the period.

It also stated that personal income tax formed the backbone of the state’s revenue, generating N350.37 billion with taxes on bank interest yielding N28.47 billion, while water rates and tariff fees brought in N30.2 billion.

The report further noted that letter of administration fees contributed N22.11 billion, while tax on contracts added N8.77 billion to the state’s earnings. Also, federation allocations accounted for a smaller portion of the revenue mix.

Furthermore, the state received N27.93 billion as statutory allocation, N224.16 billion from value added tax, and N14.76 billion from other Federation Account Allocation Committee revenues. It equally recorded N901.99 million from aids and grants, while the sale of fixed assets added N1.38 billion. An opening balance of N1.6 billion was carried into the fiscal year.

According to the government, no loans were obtained within the period despite a budgetary approval of N641.96 billion for borrowing. It added that total expenditure stood at N715.34 billion during the period under review.

Recurrent expenditure accounted for N374.58 billion, with N88.2 billion spent on salaries and N286.38 billion on other running costs. Capital expenditure totalled N340.76 billion.

Sectoral analysis showed that infrastructure received the largest capital allocation, with the Office of Infrastructure accounting for N128.4 billion. The health sector followed with N26.45 billion, representing about 17 per cent of its N155.34 billion annual allocation. The Lagos State Metropolitan Area Transport Authority received N24.49 billion to support transport development.

The report concluded by revealing that Lagos generated more than half of Akwa Ibom State’s revenue within the period, with Akwa Ibom recording N397.51 billion.