Lagos generates N803bn in three months as Revenue surges across key sectors

By Kazeem Ugbodaga

Lagos State generated over N803 billion in revenue in the first quarter of 2026, as the state government recorded strong internally generated revenue performance and improved fiscal stability amid ongoing economic reforms.

According to the Lagos State 2026 Q1 Budget Implementation Report released by the Ministry of Economic Planning and Budget, the state posted a cumulative recurrent revenue performance of N803.2 billion between January and March 2026, representing 22 per cent of its annual revenue target and 86.82 per cent of its quarterly projection.

The report attributed the strong revenue performance largely to improved enforcement by revenue-generating agencies, tighter controls against leakages and enhanced revenue collection systems.

Internally Generated Revenue remained the backbone of the state’s earnings, contributing over N536.3 billion during the quarter, while government share of FAAC accounted for N266.8 billion.

Lagos State Internal Revenue Service emerged as one of the biggest contributors, generating N425.2 billion in the first quarter alone.

The report also showed notable performances from key agencies including the Lagos State Building Control Agency, which achieved over 72 per cent of its annual revenue target within the quarter, while the Material Testing Laboratory Services recorded an impressive 96.3 per cent performance.

In the infrastructure sector, the state recorded N340.7 billion in capital expenditure during the quarter, with the government projecting stronger implementation and accelerated infrastructure spending from the second quarter of the year.

The report explained that first-quarter capital spending was traditionally slower due to procurement cycles and project mobilisation timelines, but expressed optimism that implementation would intensify in subsequent quarters.

Lagos also maintained a capital-to-recurrent expenditure ratio of 53:47 in its N4.44 trillion “Budget of Shared Prosperity,” reflecting what officials described as a strategic focus on infrastructure development, environmental sustainability, economic diversification and social inclusion.

The state government said the budget framework was designed not only to sustain physical development but also strengthen human capital and improve long-term economic resilience for Lagos residents.

Officials further noted that tighter public financial management reforms and improved procurement controls had helped optimise spending, reduce waste and strengthen accountability across ministries, departments and agencies.