Internally Generated Revenue (IGR) constituted 61% of Lagos State’s Q1 2025 total receipts

  • Internally Generated Revenue (IGR) accounted for 61% of Lagos State’s Q1 2025 receipts.
  • VAT was the second-largest funding source, contributing 22%.
  • Loans made up 8% of total inflows for the quarter.
  • Opening balance accounted for 4%, indicating a moderate carryover from the previous year.

Lagos State’s Q1 2025 inflows highlight the state’s heavy reliance on internally generated revenue (IGR), which accounted for 61% of total funds. This dominance reflects Lagos’ strong tax administration capacity and its ability to sustain governance largely independent of federal allocations. The state’s total fund composition reveals a diversified yet uneven structure, with VAT contributing 22% and loans accounting for 8%, while other streams, such as statutory allocation (2%) and FAAC (3%), play minimal roles.

The reliance on IGR is significant because it highlights Lagos’ economic strength compared to many other Nigerian states that heavily depend on federal allocations. With a vibrant business ecosystem, a large population base, and stronger infrastructure, Lagos has positioned itself to thrive on its own funding sources. This financial independence not only strengthens the state's fiscal resilience but also gives it greater autonomy in executing development projects without being overly constrained by federal transfers.

The broader implication of this inflow structure is that Lagos has created room for a more predictable financial system, relying less on volatile oil-related allocations and more on a stable stream of internal taxes and levies. This not only supports long-term planning but also makes the state better equipped to withstand national economic shocks.

Source:

Lagos State Government Budget Implementation Report

Period:

Q1 2025
HTML code to embed chart
Want a bespoke report?
Reach out
Tags
Related Insights

The manufacturing sector leads Nigerian MSME revenues with ₦8.27 million monthly, far outpacing service sectors
  • Manufacturing records the highest monthly revenue at ₦8.27m, nearly double that of the next sector.
  • Healthcare (₦5.02m) and Transportation (₦3.70m) follow, reflecting essential service demand.
  • Industries like Marketing & Advertising (₦191k), Food & Beverages (₦320k), and Education (₦440k) earn significantly less on average.
  • The difference between top earners (Manufacturing, Healthcare) and bottom sectors highlights a stark inequality in industry.

The South West is the only region with MSMEs in earning above ₦100 million monthly in revenue
  • The South West is the only region with MSMEs reporting revenues above ₦100 million, accounting for 100% of that bracket.
  • While high-revenue firms cluster in the South West, the South South leads in the ₦10M–₦99.9M range, with over 50.8% share.
  • The North Central (30.3%) has the highest share of MSMEs earning less than ₦100,000 monthly, followed by the North East (19.6%).
  • The ₦200K–₦999.9K range is more evenly spread across regions, but the South West and South South consistently record stronger representation.

Lafarge Africa delivered decade-high ₦697b revenue in 2024, with H1 2025 already at ₦517bn
  • Lafarge Africa's revenue hit a decade-high of ₦697bn in 2024, reflecting a strong 71.7% year-on-year growth.
  • With ₦517bn in H1 2025 alone, Lafarge Africa has already achieved nearly 74% of 2024’s full-year revenue, signalling potential to surpass last year’s record if momentum continues.
  • The company has experienced sharp swings, including steep drops in 2016 (-17.8%) and 2019 (-30.9%).
  • Despite volatility, Lafarge has grown from ₦260bn in 2014 to ₦697bn in 2024, showing long-term expansion.

In ten years, Osun State’s IGR rose nearly fivefold to ₦54.7b in 2024, driven by a great 97% leap from 2023
  • Osun’s Internally Generated Revenue (IGR) grew from ₦11.78b in 2015 to ₦54.70b in 2024, marking a 364% increase.
  • The state maintained steady annual growth after 2017, with notable acceleration from 2020 onward.
  • The single biggest leap occurred between 2023 and 2024, with revenue nearly doubling from ₦27.72b to ₦54.70b.
  • The upward trend reflects improved tax collection, diversification of revenue sources, and stronger fiscal policies.

A 64-page passport now costs ₦200,000, almost triple the minimum wage of ₦70,000
  • The cost of a 64-page Nigerian passport increased from ₦70,000 before September 2024 to ₦200,000 by September 2025.
  • A 32-page passport rose from ₦35,000 before September 2024 to ₦100,000 by September 2025.
  • The minimum wage only rose once within this period—from ₦30,000 to ₦70,000 in September 2024.
  • In 2025, the 64-page passport costs nearly three times the minimum wage.
  • Affording a passport now requires significantly higher financial sacrifice, particularly for low-income earners.

Nigeria's non-oil tax revenue solidified its dominance over oil in FIRS collections, reaching a record of ₦15.9t in 2024, more than 2.7x the ₦5.8t from oil
  • FIRS recorded ₦15.9 trillion of non-oil tax, almost three times the ₦5.8 trillion recorded for oil tax.
  • Non-oil tax revenue made up 73.3% of the total revenue collected in 2023.
  • From 2012 down to 2024, non-oil tax revenue surpassed oil tax revenue most of the time.
  • Oil taxes are petroleum profit tax and company income (oil & gas) tax while non-profit tax includes company income (non-oil) tax, gas tax, capital gains, stamp duty, NCS import VAT, and non-import VAT.

POPULAR TOPICS
SIGN UP TO OUR NEWSLETTER
Get periodic updates about the African startup space, access to our reports, among others.
Subscribe Here
Subscription Form

A product of Techpoint Africa. All rights reserved