Despite Lagging on 2025 IGR, Lagos Sets 2026 Target ₦830 Billion Higher
The Lagos State Government has raised the bar for 2026, unveiling an internally-generated revenue (IGR) target that is ₦830 billion higher than its 2025 ambition, even after falling short of that year’s goal.
According to the state’s 2026 revenue plan, the new IGR target is set at ₦3.119 trillion, a significant increase from the ₦2.289 trillion projected for 2025.
As of the third quarter of 2025, Lagos had generated about ₦1.34 trillion, representing just 58.9 percent of the full-year IGR expectation.
To meet the 2025 target, the state would have needed approximately ₦940 billion in the fourth quarter alone — a steep challenge given that no quarter so far had produced more than ₦500 billion.
Looking ahead, the 2026 plan implies that Lagos would need to generate around ₦260 billion per month to meet the new target.
Achieving this requires stronger revenue mobilisation strategies, improved tax compliance, expansion of the tax base, and more effective enforcement measures.
The decision to raise the 2026 target despite the 2025 shortfall reflects an ambitious fiscal posture and signals the state government’s continued confidence in its revenue-generation strategy.
However, the gap between aspiration and actual performance raises questions about the realism of the goal and the sustainability of such aggressive targets.
For stakeholders, investors, and residents, Lagos’ 2026 IGR target underscores both opportunity and challenge: it demonstrates the state’s intent to strengthen internally-generated revenue while highlighting the need for effective execution and consistent fiscal discipline.
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