The Lagos State government has reported a robust Internally-Generated Revenue (IGR) of N333.29 billion for the first quarter of 2025, with Pay As You Earn (PAYE) tax being the primary contributor, accounting for a significant 73% or N243.613 billion of the total.
The state's Commissioner for Finance, Abayomi Oluyomi, shared these figures during a media briefing marking the second anniversary of Governor Babajide Sanwo-Olu's second term in office. He also highlighted the state's overall IGR performance in 2024, which reached approximately N1.3 trillion, representing a substantial 45% increase compared to the N895 billion generated in 2023.
Oluyomi further noted a strong performance in Land Use Charge collection, with over N14 billion generated, marking a 37% rise in property tax revenue compared to the previous year. This achievement was attributed to aggressive enumeration campaigns that have expanded the state's property database to include over 800,000 buildings.
The Commissioner also detailed the state government's commitment to risk management, stating that N5.283 billion was paid in insurance premiums statewide in the past year, covering staff, infrastructure, and assets. This included the disbursement of N1.19 billion in group life and personal accident claims to injured staff members and the families of deceased workers. Additionally, the state received N290.43 million from insurers for damages to public infrastructure, underscoring the importance of insurance as a financial risk transfer mechanism.
Oluyomi emphasized the state government's dedication to its workforce, highlighting the timely payment of salaries and pensions, with N67.9 billion paid to 20,956 retirees. He also mentioned the launch of a mentorship programme aimed at developing young staff members, promoting ethical conduct, and building a skilled workforce. This initiative complements statewide capacity-building workshops and training for finance, accounts, and procurement officers. Furthermore, the state government conducted a verification of the security personnel’s payroll, effectively preventing leakages and ensuring accurate fund disbursement.
Looking ahead, the Commissioner outlined the ministry's plans to launch the Lagos State Sovereign Wealth Fund, an Economic Summit Group, and revenue courts. He also stated that the ministry has initiated the conversion of underutilized assets into liquid funds to finance infrastructural development through securitization.
In a related note, the Commissioner affirmed that the Lagos State Internal Revenue Service (LIRS) continues its efforts to broaden the tax base, eliminate revenue leakages, and drive sustainable revenue growth, which are crucial for funding the state's increasing urban and infrastructural demands.
