Lagos State generated N1.67 trillion in recurrent revenue during the first half of 2026, reaching 90 per cent of its half-year revenue target, according to the state’s second-quarter 2026 Budget Performance Report.
The report showed that the state recorded N1.667 trillion as of June 30, 2026, representing 45 per cent of its full-year recurrent revenue projection of N3.70 trillion and 90 per cent of the half-year target of N1.85 trillion.
The performance was an improvement compared with the same period in 2025, when Lagos achieved 86 per cent of its half-year recurrent revenue target.
According to the report, the increase was driven by improved revenue collection efforts, stronger enforcement, better compliance and reforms aimed at reducing leakages in the state’s revenue system.
“The Y2026 Q2 cumulative recurrent revenue performance for the period ended 30th June, 2026 was N1,667,058,379,835.53, representing 45 per cent of the recurrent revenue estimate and 90 per cent of the half-year projection,” the report stated.
The state recorded N767.15 billion in recurrent expenditure, representing 36.4 per cent of the full-year estimate and about 72.83 per cent of its half-year projection.
Capital expenditure stood at N772.64 billion, representing 33 per cent of the annual estimate of N2.34 trillion and 66.10 per cent of the half-year target.
The government attributed some revenue gaps to factors such as collection cycles, lower demand for certain government services and seasonal changes, but expressed optimism that revenue would improve further in the second half of the year as economic activities increase.
The revenue performance comes amid Lagos’ N4.44 trillion 2026 budget, which focuses heavily on infrastructure, economic development and public services.
The approved budget consists of N2.052 trillion for recurrent expenditure and N2.185 trillion for capital projects. Major allocations include N1.37 trillion for economic affairs, N338.45 billion for health, N249.13 billion for education and N235.96 billion for the environment.
Lagos has continued to strengthen its internally generated revenue capacity in recent years, with collections rising from N815.86 billion in 2023 to N1.26 trillion in 2024.
The state is also seeking additional funding for infrastructure projects through a proposed N200 billion bond, as part of efforts to expand development across the state.
The latest revenue figures come as Lagos continues to attract investment interest, with the state reporting significant capital inflows and growing recognition as one of Africa’s leading technology and business hubs.
