Internally Generated Revenue (IGR) now forms 60 per cent of Lagos State’s annual budget, Gov. Babajide Sanwo-Olu said on Wednesday.
Sanwo-Olu also said that the Lagos State Government generated about N1.3 trillion internally in 2024.
The government made the disclosure while declaring open the 159th meeting of the Joint Revenue Board in Lagos.
He attributed the feat to sustained investments in digital tax systems, expansion of the tax net, and building trust with taxpayers.
The governor described the 2024 IGR figure as modest but significant.
“We generated N1.3 trillion in IGR in 2024, which, as modest as it may seem, represents about 45 per cent growth in our revenue efforts.
“Our IGR today forms well over 60 per cent of our budget, and this is not by chance.
“It is the result of years of deliberate investment in digital tax systems, expansion of the tax net, and building trust with taxpayers,” he said.
The governor said that Lagos had fully aligned with the new national tax framework and was ready to share its experience with other states to strengthen revenue administration.
“I have accepted the responsibility to lead and to continually remind my colleagues across states of the importance of the roles you all play in revenue generation.
“We are ready to share insights with sister states and learn through mutual collaboration to improve tax administration across the country,” he said.
Sanwo-Olu also highlighted the state’s economic significance.
He said that the state accounts for roughly one-third of Nigeria’s gross domestic product and hosts critical national infrastructure.
“Lagos is not just a convenient meeting location; it represents the very essence of what this board stands for.
“We account for about a third of Nigeria’s GDP and host two of the busiest seaports — Apapa and Tin Can — which together generate over 70 per cent of the country’s maritime trade,” he said.
According to him, ongoing investments in infrastructure, including the expansion of the Lagos-Badagry Expressway and the development of regional trade corridors, are aimed at boosting economic activities and revenue generation.
“Infrastructure does not only move people and goods; it expands revenue frontiers.
“That is why we are connecting Lagos to the West African corridor to deepen trade relations across the region,” he said.
The governor said the Lekki Deep Sea Port, inaugurated in 2023, has enhanced trade and industrial activities along the Lekki corridor.
According to him, the presence of major investments, including the world’s largest single-train refinery in the area, underscores the importance of long-term planning.
“If these investments were not made years ago, the economic pressure on our country today would have been far greater,” he said.
Sanwo-Olu also urged state governments to grant revenue agencies the independence needed to function effectively.
“It is important that governors give revenue boards the independence, resources, and tenure security required to perform optimally.
“Only then can taxpayer confidence grow, and only then can we fully harness the expertise within these institutions,” he said.
He assured that Lagos would continue to invest in critical sectors such as transport, healthcare, education, and food security to sustain economic growth.
“We are building a multimodal transportation system, expanding rail, waterways, and road networks to ease movement across the state.
“We are also constructing Africa’s largest food logistics hub to guarantee food security, alongside major investments in healthcare and education infrastructure,” he said.
Sanwo-Olu reaffirmed the state’s commitment to national development through collaboration, data sharing, and policy alignment.
“Lagos is your partner in this journey. Whatever collaboration serves the national interest, you will find us open, willing, and ready to contribute,” he said.
The governor urged participants at the meeting to explore Lagos and witness its ongoing developmental projects firsthand.
He expressed optimism that the meeting outcomes would strengthen revenue generation across Nigeria.
“May your deliberations be productive and purposeful, and may the outcomes serve every Nigerian,” he said.
