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.

What the report is saying

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.

• “The Y2026 Q2 overall cumulative recurrent revenue performance for the period ended 30th June, 2026 was N1,667,058,379,835.53 (45%) of the Recurrent Revenue estimate of N3,700,509,565,766.67, and 90% performance against the half-year Recurrent Revenue estimate of N1,850,254,782,883.33,” the report stated.

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.

• In the same period in 2025, the Q2 budget implementation report shows “The 2nd Quarter overall cumulative recurrent revenue (i.e. Total Revenue and capital receipt) Performance for the Period ended 30th June 2025 was 43.8% of the Recurrent Revenue estimate of N2,915,603,868,255.12 and 86 % of the estimated 2nd quarter (Jan – June) projection of N1,457,801,934,127.6.”

More Insights

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.

• In January 2026, the Lagos State House of Assembly passed a N4.44 trillion budget for the 2026 fiscal year.
• Governor Babajide Sanwo-Olu originally presented the N4.24 trillion 2026 budget proposal to the Lagos State House of Assembly in November 2025.
• For the 2026 fiscal year, the approved N4.44 trillion budget consists of N2.052 trillion in recurrent expenditure and N2.185 trillion in capital expenditure.
• Personnel costs were projected at N440.45 billion, while debt servicing included N143.88 billion in recurring debt charges and N383.40 billion for debt repayment.
• Key sectoral allocations included N1.37 trillion for economic affairs, N338.45 billion for health, N249.13 billion for education and N235.96 billion for the environment.

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 July 2026, the Lagos State Government sought approval from the State House of Assembly to issue a N200 billion bond to finance key infrastructure projects.
• In November 2025, the state returned to the domestic debt market with plans to raise up to N200 billion through a 10-year bond under its N1 trillion Debt and Hybrid Instruments Issuance Programme.
• The 2026 budget allocated N2.19 trillion to capital expenditure, underscoring the state government’s focus on infrastructure and development projects.

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

What you should know

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.