The Lagos State Internal Revenue Service (LIRS) has hit a historic milestone, crossing the one-trillion-naira tax revenue threshold for the first time as the state’s aggressive digital transformation drives unprecedented fiscal growth.
According to newly released performance data, Lagos State’s total revenue surged to N2.6 trillion in 2025, representing a 16% increase from the N2.3 trillion recorded in 2024.
The Honourable Commissioner, Lagos State Ministry of Finance, Mr. Abayomi Oluyomi disclosed this at the Ministerial Press Briefing Y2026 of the Lagos State Ministry of Finance on its activities and achievements.
According to him, the growth was heavily propelled by Internally Generated Revenue (IGR), which climbed 18.5% to N1.87 trillion in 2025, up from N1.58 trillion the previous year.
The Trillion-Naira Tax Surge
The crown jewel of the state’s financial report is the exponential trajectory of its tax collections. From N678.13 billion in 2023, tax revenue grew by a massive 54.2% to hit N1.045 trillion in 2024, marking the first time the LIRS has ever breached the N1 trillion mark.
Far from a temporary spike, tax revenue surged by another 38% in 2025, wrapping up the year at N1.443 trillion.
“The LIRS remains focused on broadening the tax base, closing revenue gaps, and fostering long-term revenue growth, all essential to funding the State’s expanding urban and infrastructure requirements,” the agency noted in its review.
Tech-Driven Compliance and AI
LIRS attributes this revenue boom to a complete overhaul of its tax collection infrastructure. Following a successful transition from a hybrid model to a fully electronic filing system in 2023, the state has continued to refine its cloud-migrated e-Tax platform.
The digital infrastructure now includes features such as:
Advanced Modules: Seamless integration for Stamp Duties, Capital Gains Tax (CGT) filing, and Geo-Tagging.
Artificial Intelligence: The rollout of a dedicated Revenue AI Chatbot to handle taxpayer inquiries.
High-Net-Worth Tracking & New Tax Frameworks
To crack down on tax evasion, the LIRS has significantly strengthened its inter-agency collaborations.
By sharing continuous data with local governments, federal bodies, and corporate registries, including the Corporate Affairs Commission (CAC), Nigeria Immigration Service (NIS), Federal Road Safety Corps (FRSC), and the Federal Inland Revenue Service (FIRS-OECD), the state has tightened its tracking of high-net-worth individuals and corporate entities. Notably, the NIS integration now allows for seamless tracking of expatriates.
The state is also expanding its tax net into previously under-tapped sectors.
The Withholding Tax (WHT) compliance framework has officially been expanded to include lotteries and winnings. Furthermore, the LIRS has trained a spotlight on the outsourcing sector, making it mandatory for top taxpayers to submit outsourcing contracts and incorporating these disclosures directly into routine tax audits.
With these structural reforms and technological upgrades fully active, Lagos State is positioning its tax architecture to sustainably fund its massive mega-city infrastructure projects for the foreseeable future.
