Tax revenues contributed a substantial 80.69 percent to Lagos State’s internally generated revenue (IGR) in 2023, according to a new report by civic think tank BudgIT.
This heavy reliance on tax collections underscores Lagos’ relative independence from federal allocations, making it the least dependent state on federal government handouts, the report noted.
The report also highlighted challenges tied to the recent devaluation of the naira, which has had a significant impact on Lagos’ external debt. BudgIT pointed out that the state’s external debt of $1.24 billion surged by N557.28 billion in naira terms, reflecting the increased financial burden on the state’s economy.
With tax revenue as its primary funding source, Lagos continues to lead among Nigerian states in self-sustenance, while navigating fiscal pressures brought on by currency devaluation.
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