Lagos generated N1.3 trillion in 2024 – Official

Lagos State Government has announced a record N1.3 trillion in Internally Generated Revenue (IGR) in 2024, which is a 45 per cent increase from 2023.

However, this economic surge stands in complete contrast to worsening poverty in the city’s slums, where millions still lack access to basic services.

At a ministerial press briefing in Ikeja on Monday, the Commissioner for Finance, Abayomi Oluyomi, said the state had already collected N333 billion in IGR for 2025.

He noted that N14 billion came from the Land Use Charge, reflecting a 37 per cent increase in property tax revenue.

He stated that the administration of Governor Babajide Sanwo-Olu enumerated over 800,000 properties and expanded payment options to include POS, USSD, WhatsApp, and online platforms.

Persistent poverty

Despite these advances, Lagos’ prosperity has failed to reach a large group of its population, especially in informal settlements like Makoko, Iwaya, Ilaje, Ijora Badia, and Amukoko.

A recent study of five major slums near the city’s coastline shows the persistence of multidimensional poverty that is defined not just by income, but by access to education, healthcare, sanitation, and housing.

The report used a “fuzzy set” model, developed in the 1990s to capture varying degrees of deprivation, researchers found that Makoko and Iwaya had the highest multidimensional poverty index scores, exceeding the severe poverty threshold of 0.50.

The communities are deeply deprived in areas like schooling, sanitation, and nutrition, especially Makoko, which has makeshift housing and poor infrastructure that worsen its vulnerability, while Iwaya shares similar deficits in education and health services.

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The report said that among the three measured dimensions,, including education, living standards, and health, education showed the highest levels of deprivation across all five slums. Makoko and Iwaya were the worst affected, despite some improvement in child enrolment rates.

Also, the report stated that the living standards, especially sanitation, varied by community. Amukoko had the lowest overall poverty index (0.0312), with relatively better outcomes in waste disposal and access to toilets.

However, it explained that health-related deprivations are measured by indicators such as nutrition and mortality. 

The report noted that poor waste management, especially in Makoko and Iwaya, contributed to health challenges. In these communities, waste is often dumped in waterways, and toilet facilities are limited. Yet personal hygiene habits, including the use of clean water and soap, helped moderate some sanitation-related health risks.

It said the World Bank has identified these slums for potential upgrades under a $200 million project targeting drainage and solid waste infrastructure.

Disparity

While Lagos remains Nigeria’s financial hub with a GDP (Purchasing Power Parity) estimated at $259 billion, the disparity between its revenue success and the entrenched poverty in its slums underlines the urgent need for inclusive development.

Mr Oluyomi said the state is not relying solely on IGR for infrastructure projects.

“We have identified N3 trillion worth of idle assets across the country. Lagos State Government is set to convert all identified idle assets into liquidity for funding infrastructure development through securitisation,” Mr Oluyomi stated.

He explained that nationally, Nigeria’s economy is recovering gradually, with 2025 GDP growth projections ranging from 3.0 per cent (IMF) to 3.6 per cent (World Bank), driven by the services sector and a rebound in oil production.

He said the inflation is expected to average 26.5 per cent, and the naira continues to face exchange rate volatility.

But he said Lagos remains resilient because of “Strategic reforms and financial innovations that have positioned Lagos as a leader in sub-national financial management.

Government initiative

In April, Governor Sanwo-Olu empowered about 1,700 residents of the state with life skills and resources through Micro Enterprise Support Initiative (MESI) to transform lives, foster entrepreneurship and enhance their socio-economic wellbeing.

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He stated that the initiative had not only demonstrated his administration’s commitment to addressing the root causes of poverty, but also a way to directly impact lives and deliver dividends of democracy.

“This is a deliberate bottom-up action being taken to uplift communities through a family member. The training offered a range of skills that are mostly peculiar to women, because that is the gender that is generally vulnerable.

“If a household is empowered, it will have a ripple impact on the family and the community. From the community, the impact is felt in the Local Government Area and then across the State. This is how growth is achieved from the grassroots,” he added.

He said his administration has invested close to N10 billion in various interventions aimed at supporting vulnerable residents in skill development and economic empowerment.