Lagos collects N1.67 trillion in six months, hits 90% revenue target

Lagos State generated N1.67 trillion in recurrent revenue in the first half of 2026, achieving 90% of its half-year target.

This is according to the state’s second-quarter 2026 Budget Performance Report.

The state generated N1.67 trillion as of June 30, 2026, representing 45% of its full-year recurrent revenue estimate of N3.70 trillion and 90% of its half-year projection of N1.85 trillion.

The performance compares with 86% of the half-year recurrent revenue target recorded in the corresponding period of 2025, although the state’s 2026 report said revenue collection remained below the full-year projection.

Lagos’ recurrent revenue performance in the first half of 2026 reflected improved collections from key internally generated revenue sources, supported by revenue administration reforms and stronger enforcement.

Recurrent expenditure stood at N767.15 billion, representing 36.4% of the full-year estimate and 72.83% of the half-year projection of N1.05 trillion.

Capital expenditure reached N772.64 billion, representing 33% of the full-year estimate of N2.34 trillion and 66.10% of the half-year target of N1.17 trillion.

The state said revenue improvements were driven by sustained reforms, enhanced compliance, stronger enforcement and efforts to reduce leakages, while shortfalls in some revenue lines reflected collection cycles, reduced demand for some government services and seasonal variations.

The report said collections from some revenue sources are expected to improve as revenue-enhancement measures progress and economic activity strengthens in the second half of the year.

Lagos’ first-half revenue performance comes against the backdrop of a N4.44 trillion budget approved for the 2026 fiscal year, with a significant portion earmarked for capital projects and economic development.

Lagos’ internally generated revenue rose from N815.86 billion in 2023 to N1.26 trillion in 2024.

The state’s capital spending in the first half of 2026 was influenced by procurement processes, contract awards, project mobilisation and payments linked to project milestones, according to the budget implementation report.

Lagos’ 2026 revenue performance also comes as the state continues to seek additional financing for infrastructure development, with the government pursuing a N200 billion bond.

In the first half of 2026, capital expenditure reached N772.64 billion, equivalent to 66.10% of the half-year capital expenditure projection.

Nairametrics previously reported that Governor Sanwo-Olu disclosed that the state attracted $2.73bn in capital flow in the third quarter of 2025.

He stated this while speaking at the John F. Kennedy Jr. Forum on Africa’s Urban Future, held at the Harvard Kennedy School Institute of Politics in Boston, Massachusetts.

Lagos was ranked the world’s fastest‑growing tech ecosystem in 2025 by the Global Tech Ecosystem Index. The report noted that Lagos leads global emerging tech hubs and has produced multiple unicorn companies, underscoring its appeal to investors and startups.