Driven largely by internally generated revenue, Lagos earned ₦1.69 trillion in six months and spent over 91 per cent of it, with sharp contrasts in capital funding across key sectors, including health, education and the environment.
The Lagos State Government generated ₦1.685 trillion in revenue in the first six months of 2026, with internally generated revenue (IGR) accounting for nearly seven out of every ten naira earned during the period.
A review of the state's second-quarter 2026 Budget Performance Report shows that the government also spent ₦1.539 trillion during the same period, representing 91.3 per cent of the total revenue realised.
The figures show Lagos's continued reliance on internally generated revenue to finance government activities, while maintaining a near-even balance between recurrent and capital spending.
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The report shows IGR contributed ₦1.166 trillion, representing 69.2 per cent of the total revenue earned between January and June.
The state's share of the Federation Account Allocation Committee accounted for ₦501.09 billion, making it the second-largest source of revenue.
Other revenue sources included an ₦1.6 billion opening balance carried over from 2025, ₦4.91 billion from aids and grants, ₦9.87 billion realised from loans and borrowing receipts, and ₦1.94 billion classified as other capital receipts.
PREMIUM TIMES earlier reported that in the first quarter of 2026, Lagos State earned ₦807 billion in revenue, surpassing Nigeria's subnational peers.
Spending profile
According to the report, Lagos spent ₦1.539 trillion over the six months.
Of that amount, recurrent expenditure accounted for ₦767.15 billion, while ₦772.64 billion was released for capital projects.
The capital allocation marginally exceeded recurrent spending, indicating sustained investment in infrastructure and other development projects.
Capital releases across key sectors
The budget performance report shows wide disparities in capital releases across sectors.
The environment sector recorded one of the strongest performances, receiving ₦83.83 billion, equivalent to 53.5 per cent of its capital budget.
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Health received ₦49.59 billion, representing 31.9 per cent of its capital allocation.
Education, however, recorded lower performance, with ₦14.9 billion released, representing 26.8 per cent of its capital budget for the period.
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