Lagos, Nigeria’s startup capital, made ₦1.26 trillion ($857.57 million) in internally generated income in 2024, a 54.63% improve from the ₦815.87 billion ($554.59 million) it made in 2023.
That is greater than the ₦1.24 trillion ($841.97 million) mixed IGR of 31 different states in 2024. The states embrace Edo, Akwa Ibom, Kwara, Kano, Kaduna, Bayelsa, Jigawa, Oyo, Osun, Cross River, Ondo, Katsina, Abia, Anambra, Ekiti, Niger, Plateau, Kogi, Zamfara, Nassarawa, Bauchi, Imo, Borno, Benue, Adamawa, Sokoto, Gombe, Taraba, Kebbi, Ebonyi, and Yobe.
Lagos is Nigeria’s richest state, with a labour power inhabitants of 6.43 million in 2023, dominated by these between the ages of 15 and 34 (2.7 million), making Pay As You Earn (PAYE) its most useful revenue stream. PAYE is the tax deducted straight from salaries, and it contributed ₦705.41 billion ($479.52 million) to Lagos’s income in 024, 58.62% greater than the ₦444.73 billion ($302.32 million) earned in 2023.
In contrast, the 31 states talked about above made ₦497.95 billion ($338.49 million) mixed from PAYE.
Your Lagos Tax Fingerprint
Each tax cost fuels the state’s income engine. Calculate your **estimated** annual PAYE contribution to Lagos’s ₦705 billion haul utilizing an **estimated 15% efficient tax charge**.
Your Estimated Annual PAYE Contribution:
*Disclaimer: This device makes use of a simplified 15% efficient tax charge on gross revenue for illustration. Precise PAYE is calculated utilizing the Private Earnings Tax Act (PITA) progressive bands, reliefs, and exemptions and can range.
Lagos is dwelling to over 500 startups and attracts over half of Nigeria’s startup investments. 1000’s of younger folks work in tech hubs from Yaba to Lekki, constructing merchandise, working help groups, and contributing to the state’s tax engine.
“1000’s of our youths are busy at tech hubs, utilizing know-how to resolve on a regular basis challenges. We are going to maintain encouraging them,” Lagos Governor, Babajide Sanwo-Olu, stated in Could, after Lagos was recognised by Dealroom.co, a Netherlands-based analysis agency, as Africa’s fastest-growing tech ecosystem.
The state is about to commit about 1.5% of its annual capital funds to an innovation fund because it seeks to develop its startup ecosystem.
In 2024, the state’s Commissioner for Info, Gbenga Omotoso, disclosed that about six million folks pay tax in Lagos, with 4.5 million energetic and constant, and 90% paying PAYE.
In Q1 2025 alone, PAYE already made up 73% of the ₦333.29 billion the state collected in income, in accordance with the Commissioner for Finance, Abayomi Oluyomi.
“The first contributor to IGR stays the Pay-As-You-Earn (PAYE) tax, collected by the Lagos Inland Income Service (LIRS),” in accordance with a 2025 Lagos coverage doc, which itemises how the state plans to reinforce income technology.
Regardless of this income development, Taiwo Oyedele, chairman of the Presidential Fiscal Coverage and Tax Reforms Committee, stated in March 2025 that Lagos’s income assortment continues to be lower than 2% of its GDP.
One of many pathways he instructed for growing income includes the additional enlargement of private revenue tax to the state’s digital and inventive industries.
From 2026, new tax legal guidelines in Nigeria will seize distant employees and freelancers beneath the private revenue tax internet, that means extra income for Lagos, the place many of the nation’s digital financial exercise occurs.
Mark your calendars! Moonshot by TechCabal is again in Lagos on October 15–16! Meet and study from Africa’s prime founders, creatives & tech leaders for two days of keynotes, mixers & future-forward concepts. Get your tickets now: moonshot.techcabal.com
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