Lagos State recorded an impressive ₦807.1 billion in revenue in the first quarter of 2026, representing 18.2% of its ₦4.44 trillion budget, according to official figures.
The report shows that Internally Generated Revenue (IGR) remained the backbone of the state’s earnings, contributing ₦536.37 billion—the highest by any state within the period. Personal Income Tax alone accounted for ₦350.37 billion, highlighting its dominance in Lagos’ revenue structure.
Other notable contributions included ₦28.47 billion from taxes on bank interest, ₦30.2 billion from water rates and tariffs, ₦22.11 billion from letter of administration fees, and ₦8.77 billion from contract taxes.
Revenue from the Federation Account played a smaller role. The state received ₦27.93 billion as statutory allocation, ₦224.16 billion from VAT, and ₦14.76 billion from other FAAC disbursements. Additional inflows included ₦901.99 million in grants and ₦1.38 billion from the sale of fixed assets, alongside an opening balance of ₦1.6 billion.
Despite having approval to borrow ₦641.96 billion, Lagos did not take any loans during the period.
On the expenditure side, total spending stood at ₦715.34 billion. Recurrent expenditure accounted for ₦374.58 billion, including ₦88.2 billion on salaries and ₦286.38 billion on overhead costs. Capital expenditure reached ₦340.76 billion.
Infrastructure received the largest capital allocation, with ₦128.4 billion channelled through the Office of Infrastructure. The health sector followed with ₦26.45 billion, while the Lagos State Metropolitan Area Transport Authority received ₦24.49 billion to boost transport development.
Comparatively, Lagos generated more than half of Akwa Ibom State’s revenue for the same period, which stood at ₦397.51 billion—further underlining its position as Nigeria’s economic powerhouse.
