Admin I Friday, March 14, 2025
LAGOS, Nigeria – Chairman of the Presidential Fiscal Policy and Tax Reform Committee, Mr. Taiwo Oyedele, has revealed that Lagos can rake in ₦5trillion Internally Generated Revenue, IGR, yearly, if the right reforms, economic efficiency, competitiveness, harmonization, and transparency are devised for funding of infrastructure, education, and healthcare for her citizens.
The Tax Reform Committee chairman disclosed at the launch of the 2025 Lagos Economic Development Update (LEDU) Report, by the State’s Ministry of Economic Planning and Budget through her Economic Intelligence Department with the theme: “Lagos Economic Outlook: charting a resilient path towards sustainable future” held at the Protea-Select Hotel, CBD, Ikeja.
LEDU is a comprehensive report that provides a data-driven assessment of the state’s economic performance and outlines strategic policy directions for sustainable growth.
The Report launching was performed by the Commissioner, Economic Planning and Budget Ministry, Mr. Ope George; the Tax Reform Committee chairman, Mr. Taiwo Oyedele; Deputy Chief of Staff to Governor Sanwo-Olu, Mr. Sam Egube; President, Nigeria Economic Society (NES), Prof. Adeola Adenikinju; Director General, Development Agenda for Western Nigeria (DAWN) Commission, Dr. Seye Oyeleye; CEO of Nairametrics, Mr. Ugodre Obi-Chukwu and Permanent Secretary, Ministry of Economic Planning and Budget, Mrs Olayinka Ojo.
Others are: Commissioners, Youth and Social Development, Mr. Mobolaji Ogunlende and Basic and Secondary Education, Mr. Jamiu Tolani Alli-Balogun, Special Advisers, Taxation and Revenue, Mr Abdul-Kabir Ogungbo; Economic Planning and Budget, Mr Lekan Balogun amongst others.
Oyedele, in keynote address said, “With the right progressive reforms, economic efficiency, competitiveness, harmonization, and transparency, Lagos can generate up to ₦5 trillion annually in Internally Generated Revenue (IGR)—funding infrastructure, education, and healthcare for Lagosians.
“Lagos is not generating enough revenue to match its ambitions. Not just in comparison to other Nigerian states—but relative to similar economies across Africa and the world.”
For Lagos to reach its full potential in revenue generation, he highlighted some transformative paths such as property tax. According to him, “Lagos can generate a minimum of ₦1 trillion annually from property tax alone which can be earmarked for infrastructure, roads, schools, and sanitation and more to further enhance property values and the quality of life for Lagosians.”
He hinted that property tax could be achieved by improving land titling and ease of property transactions, encouraging compliance through rewards with policy on diligent payment of Land Use Charge (LUC), noting that readily available property valuation data would ‘make tax calculations clear, predictable, and enforceable.’
Oyedele stated further that the tax net could also be widened through personal income tax leveraging on AI-driven tax intelligence to identify high-income earners who should be contributing more to the system, adding that the informal sector should be formalized as Lagos is home to creativity and culture activities.
He urged for fair implementation of a reasonable tax regime to ensure that small businesses contribute without being overtaxed.
The Tax Reform chairman said Lagos must simplify and harmonise its tax administration to ensure predictability for businesses and individuals, noting that “Tax harmonisation is not just about revenue—it is about transparency, efficiency and ease of doing business. When businesses and citizens trust the system, they are more likely to comply.”
He averred that Lagos has the potential to be the Dubai of Africa, the Singapore of the Atlantic, the Taiwan of innovation and industry, with bold leadership, innovative thinking, and collective action needed to achieve the feat.
Earlier in his opening remarks, Mr Ope George, the Economic Planning Commissioner reiterated the State’s commitment to evidence-based policymaking and economic resilience. He emphasized that Lagos remains the economic heartbeat of Nigeria and a major driver of Africa’s prosperity but must continue to evolve its strategies in response to changing economic realities.
While highlighting key areas of focus: inflationary pressures, revenue constraints, and global market shifts, he stressed the position of strategic collaboration between government, industry leaders, and stakeholders in driving Lagos’ economic future.
The Permanent Secretary of the Ministry of Economic Planning and Budget, Mrs Olayinka Ojo in her welcome address said that the 2025 LEDU report provides critical insights into fiscal sustainability, labor market dynamics, and revenue generation while outlining interventions needed in infrastructure, energy, social protection, skills development, and climate resilience, which are integral to achieving the Lagos State Development Plan (LSDP).
