Commissioner for Finance for Lagos state, Abayomi Oluyomi, has said that the state is increasingly leveraging technology and digital platforms to strengthen revenue collection, improve efficiency and reduce corruption across government operations.
Speaking during an interview With ARISE NEWS on Thursday, Oluyomi explained that Lagos generates about 80 percent of its revenue internally, with taxes accounting for the largest share of the state’s income.
“About 80% of our revenue is generated locally, while only about 20% comes from federal transfers,” he said.
According to him, Lagos relies heavily on Pay As You Earn taxes from thousands of registered companies and employees, alongside revenues from informal taxes, levies and government service charges.
Oluyomi noted that the state has adopted several technology-driven systems to simplify tax administration and enhance compliance.
“We leverage technology in Lagos State to collect tax. We have the Lagos Revenue Portal, enterprise tax administration systems and data analytics tools,” he stated.
He explained that the state’s digital tax platforms allow authorities to track payments, organise revenue data and make projections more efficiently.
The commissioner added that Lagos has also introduced multiple payment channels, including banking platforms and digital applications, to make tax payments easier for residents and businesses.
On plans to digitise parking fee collection, Oluyomi said the initiative is aimed not only at generating revenue but also at improving traffic management and creating jobs.
“It is not majorly about revenue. It is about reorganising traffic, improving orderliness and creating employment opportunities,” he said.
He noted that the proposed cashless parking payment system would help address chaotic parking practices while improving transparency in fee collection.
Oluyomi further stated that Lagos has fully embraced e-governance, moving away from manual operations across ministries, departments and agencies.
“The era of manual operations is gone. Digital payment is what we are doing now,” he added
Addressing concerns over Lagos State’s debt profile, Oluyomi maintained that the state’s debt remains sustainable despite rising infrastructure demands.
According to him, Lagos faces a major infrastructure deficit due to its growing population and expanding economy, making borrowing necessary for development projects.
“The infrastructure deficit in Lagos is huge, and funding critical projects requires strategic borrowing,” he explained.
Oluyomi concluded that Lagos now avoids foreign currency-denominated loans because of exchange rate volatility and is instead focusing on long-term and lower-cost financing options.
He also revealed that the state is exploring asset-backed financing structures to fund infrastructure without increasing pressure on its balance sheet.
“We are packaging idle assets to support critical infrastructure financing without putting additional liabilities directly on the balance sheet,” he said.
Goodness Anunobi
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