Lagos State has reported a strong fiscal start in 2026, generating ₦807.1 billion in the first quarter, which represents 18.2% of its ₦4.44 trillion budget.
The performance, largely driven by personal income taxes, reinforces Lagos’ position as Nigeria’s top revenue-earning state.
According to the Lagos State first quarter budget performance report, internally generated revenue (IGR) accounted for ₦536.37 billion, the highest by any state in Nigeria during the period.
Personal income tax contributed ₦350.37 billion, far outpacing other revenue lines. Taxes on bank interest added ₦28.47 billion, while water rates and tariff fees brought in ₦30.2 billion.
Other sources included ₦22.11 billion from letter of administration fees and ₦8.77 billion from contract taxes.
Federation allocations played a smaller role, with Lagos receiving ₦27.93 billion in statutory allocation, ₦224.16 billion from VAT, and ₦14.76 billion from other FAAC revenues.
Aids and grants contributed ₦901.99 million, while the sale of fixed assets added ₦1.38 billion. The state also carried forward an opening balance of ₦1.6 billion.
Notably, Lagos did not obtain any loan within the period, despite budgetary approval for ₦641.96 billion in borrowing.
Spending And Sectoral Focus
The state spent ₦715.34 billion in the same quarter. Recurrent expenditure dominated, with ₦88.2 billion used for salaries and ₦286.38 billion for other running costs, totaling ₦374.58 billion.
Capital expenditure stood at ₦340.76 billion, showing Lagos’ commitment to infrastructure and development projects.
Sectoral analysis revealed that the Office of Infrastructure received ₦128.4 billion, the largest share of capital releases. The health sector followed with ₦26.45 billion, representing about 17% of its ₦155.34 billion annual allocation.
The Lagos State Metropolitan Area Transport Authority received ₦24.49 billion to support transport development.
For comparison, Lagos’ revenue in the first quarter was more than double that of Akwa Ibom State, which generated ₦397.51 billion despite being one of Nigeria’s top oil-producing states.
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