The Lagos State Government has expressed optimism that it can finance its ambitious ₦3.367 trillion budget for 2025 primarily through internally generated revenue rather than relying on borrowing.
This was revealed during a budget analysis press briefing at the Press Center, Alausa, Ikeja, by the Commissioner for Economic Planning and Budget, Ope George, and his counterpart from the Finance Ministry, Abayomi Oluyomi.
The budget is expected to be funded through a total revenue projection of ₦2.968 trillion, consisting of Internally Generated Revenue: ₦2.230 trillion, Capital Receipts: ₦111.839 billion, and Federal Transfers: ₦626.137 billion. This revenue projection sets a monthly target of ₦247.331 billion for the state.
According to George, the Lagos Internal Revenue Service (LIRS) is anticipated to contribute 63% (₦1.4 trillion) of the Internally Generated Revenue, while various government ministries, departments, and agencies (MDAs) are expected to generate the remaining 37% (₦830.177 billion). The government aims to achieve this by expanding the tax base using technology, data intelligence, and strategic economic policies.
“We see significant revenue opportunities in the informal sector, tourism, real estate, transportation, and trade,” he added.
Despite these efforts, the state anticipates a budget deficit of ₦398.662 billion, which it plans to cover through External Loans: ₦28.751 billion, Internal Loans: ₦203.831 billion, Bond Issuance: ₦150 billion, and Other funding sources: ₦16.080 billion.
The total budget expenditure of ₦3.367 trillion is divided into Recurrent Expenditure: ₦1.296 trillion (38%) and Capital Expenditure: ₦2.071 trillion (62%). The recurring expenses include Personnel Costs: ₦401.120 billion, Overhead Costs: ₦799.511 billion, and Debt Charges: ₦95 billion. George noted that the personnel cost has increased by ₦146.003 billion compared to 2024 due to the planned salary increment aimed at cushioning the effects of inflation and subsidy removal.
The budget is distributed across various sectors as follows: General Public Services N398,368,579,418, Public Order and Safety N91,472,518,204, Economic Affairs N162,467,077,787 Environment N 75,842,862,616, Housing and Community Amenities N26,000,691,418, Health N173,847,292,450, Recreation, Culture and Religion N37,782,405,139, Education N166,310,716,148, and Social Protection N32,805,054,933.
The budget earmarks substantial funds for road, transport, and housing projects across Lagos. Key projects include the construction and rehabilitation of Samuel Ekundayo/Toga Road, Badagry; Abaranje Road, Alimosho; Adamo-Akanun-Agunfoye Lugbusi Roads, Ikorodu; and Ikeja GRA road network (Oba Dosunmu Road, Sasegbon Street, etc.). It also includes the rehabilitation of the Lekki-Epe Expressway (Phase IIA – 18.6 km), Opebi Link Bridge to Maryland, Lagos-Badagry Expressway, and the construction of the Lekki-Epe (Orisa) Bridge. Urban renewal studies for the Fourth Mainland Bridge are also planned.
Other major infrastructure projects include the completion of the Abule Egba and Ajah Bus Terminals, construction of the Iyana-Ipaja Bus Terminal, expansion of the Lagos Rail Mass Transit System from Mile 2 to Okokomaiko, and development of the 68 km Green Line Rail from Marina to the Lekki Free Trade Zone. The state also plans to complete 13 new jetties and upgrade existing ones to enhance water transportation.
The government is also investing in housing development, with the completion of 444 housing units at Sangotedo Phase 2, 420 units at Ajara-Badagry, 136 units at Ibeshe 2 and Epe, and the construction of Egan Phase 2 and 3.
To support youth development and sports, the state will complete stadia in Ikorodu, Badagry, Epe, Ifako-Ijaiye, Ketu, Ibeju-Lekki, Sari Iganmu, and Ajeromi, along with the construction of a permanent National Youth Service Corps (NYSC) camp.
George emphasized that the ‘Budget of Sustainability’ is not just a fiscal document but a framework aimed at providing economic stability, environmental sustainability, and social equity, ensuring that Lagos remains prosperous for future generations.
The 2025 budget is structured around five key pillars: infrastructure and environmental sustainability, economic diversification, social inclusion and human capital development, governance, and institutional reforms.