Nigeria tax overhaul gains traction as States back revenue harmonisation drive

Babajide Sanwo-Olu, Lagos State governor, says Nigeria’s ongoing tax reforms mark a ‘genuine shift’ and the structural overhaul needed to strengthen the country’s fiscal framework, citing new efforts to unify revenue administration and protect taxpayers’ rights.

Speaking Wednesday at the 159th meeting of the Joint Revenue Board (JRB) in Lagos, the governor highlighted the replacement of the Joint Tax Board (JTB) with the JRB as a pivotal reform.

He noted that the expanded mandate of the new body, covering harmonisation of revenue administration across federal, state and local governments, dispute resolution, and the establishment of a Tax Ombud, signals a more coordinated and accountable fiscal system.

According to him, the reforms are designed to streamline tax processes, reduce inter-governmental friction and strengthen confidence in the tax system.

He described the introduction of an independent ombudsman for taxpayers as a critical step toward improving transparency and trust.

‘These are no small achievements,’ he said, commending the leadership behind the reforms, including the presidency and the National Assembly, as well as the JRB for driving implementation.

Sanwo-Olu said Lagos would continue to support collaboration across the revenue ecosystem, positioning the state as a key partner in advancing national tax reforms.

He pointed to Lagos’ own revenue performance as evidence of the impact of institutional reforms, noting that internally generated revenue (IGR) now accounts for about 60 percent of the state’s capital expenditure. The growth, he said, has been driven by granting autonomy to the Lagos State Internal Revenue Service (LIRS), investment in technology, expansion of the tax net and improved taxpayer engagement.

The governor, who serves as an ambassador of the JRB to the Nigeria Governors’ Forum, reiterated his call for greater autonomy for state revenue authorities, arguing that operational independence and secure tenure are essential for optimal performance and stronger taxpayer confidence.

‘As your ambassador, I will continue to advocate for the independence you need to deliver effectively,’ he said.

In a keynote address delivered on behalf of the JRB chairman, Zacch Adedeji, the board praised Lagos’ revenue performance, attributing it to sustained reforms and institutional strengthening.

The board said Lagos generated more than N1.7 trillion in 2025, a 39 percent increase from N1.2 trillion in 2024, reflecting consistent progress in tax administration.

It added that the state’s revenue has been effectively deployed toward infrastructure development and social investment, including transportation, education and food security.

Earlier, Ayodele Subair, LIRS executive chairman said the JRB plays a critical role in strengthening Nigeria’s tax system, noting that the meeting comes at a pivotal moment following the enactment of new tax laws. He said Lagos’ reforms and leadership support have positioned the state as a model for subnational revenue mobilisation.

The meeting, themed ‘From Fragmentation to Coherence: Advancing Sub-National Tax Administration Through Harmonisation,’ focuses on deepening coordination and efficiency across Nigeria’s tax system.

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