Lagos State generated ₦1.67 trillion in recurrent revenue during the first half of 2026, reaching 90% of its January-to-June target as ongoing reforms strengthened internally generated revenue and improved tax administration.
The state's Second Quarter 2026 Budget Performance Report shows that recurrent revenue stood at ₦1,667,058,379,835.53 as of June 30, 2026. This represents 45% of the full-year recurrent revenue estimate of ₦3,700,509,565,766.67 and 90% of the half-year projection of ₦1,850,254,782,883.33.
The performance exceeded the corresponding period in 2025, when Lagos achieved 86% of its half-year projection. However, the report noted that revenue collections remain below the level required to meet the full-year estimate.
According to the report, stronger revenue administration, improved compliance, tighter enforcement and efforts to curb leakages contributed to the improved performance. It added that collections from some revenue sources were affected by seasonal factors, collection cycles and reduced demand for certain government services, but are expected to improve as economic activity strengthens in the second half of the year.
The report stated that the overall cumulative recurrent revenue performance for the period ended June 30, 2026, was ₦1,667,058,379,835.53, representing 45% of the annual estimate and 90% of the half-year target.
On the spending side, recurrent expenditure reached ₦767.15 billion, representing 36.4% of the annual estimate and 72.83% of the half-year projection of ₦1.05 trillion. Capital expenditure stood at ₦772.64 billion, equivalent to 33% of the full-year estimate of ₦2.34 trillion and 66.10% of the half-year target of ₦1.17 trillion. The report attributed the pace of capital spending to procurement processes, contract awards, project mobilisation and milestone-based payments.
The results come as Lagos implements its ₦4.44 trillion 2026 budget, approved by the Lagos State House of Assembly in January after Governor Babajide Sanwo-Olu presented an initial ₦4.24 trillion proposal in November 2025.
The approved budget provides ₦2.052 trillion for recurrent expenditure and ₦2.185 trillion for capital projects. It also earmarks ₦440.45 billion for personnel costs, ₦143.88 billion for recurring debt servicing and ₦383.40 billion for debt repayment. Key sectoral allocations include ₦1.37 trillion for economic affairs, ₦338.45 billion for health, ₦249.13 billion for education and ₦235.96 billion for the environment.
Lagos has continued to expand its internally generated revenue, which increased from ₦815.86 billion in 2023 to ₦1.26 trillion in 2024, reinforcing the state's fiscal capacity.
To sustain infrastructure development, the state sought approval from the Lagos State House of Assembly in July 2026 to issue a ₦200 billion bond. The planned issuance follows its return to the domestic debt market in November 2025, when it announced plans to raise up to ₦200 billion through a 10-year bond under its ₦1 trillion Debt and Hybrid Instruments Issuance Programme.
The report also referenced the 2025 second-quarter budget implementation report, which showed cumulative recurrent revenue performance of 43.8% of the annual recurrent revenue estimate of ₦2,915,603,868,255.12 and 86% of the January-to-June projection of ₦1,457,801,934,127.6.
Beyond its fiscal performance, Lagos continues to attract investment and strengthen its economic profile as the state attracted $2.73 billion in capital inflows during the third quarter of 2025.
In 2025, the Global Tech Ecosystem Index also ranked Lagos as the world's fastest-growing tech ecosystem, citing its emergence as a leading technology hub with multiple unicorn companies. Together, these milestones reflect the state's expanding capacity to finance development, attract investment and support Nigeria's economic growth.
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