Sanwo-Olu Lauds Ongoing Tax Reforms, Says IGR Now Funds 60% of State’s Capital Expenditure

Ndubuisi Francis in Abuja

The Lagos State Governor, Mr. Babajide Sanwo-Olu, has applauded the ongoing tax reforms, saying they represent a genuine shift and structural overhaul Nigeria needs in its fiscal space.

Sanwo-Olu stated this yesterday, at the official opening of the 159th Meeting of the Joint Revenue Board (JRB) in Lagos.

The theme of the 159th Meeting of the JRB was, “From Fragmentation to Coherence: Advancing Sub-National Tax Administration Through Harmonisation.”

In a statement, the JRB quoted Sanwo-Olu as saying that the replacement of the old Joint Tax Board (JTB) with JRB and the expansion of the Board’s mandate to include harmonisation of revenue administration across all tiers of governments, resolution of disputes on revenue administration at the inter-governmental level, and the creation of Office of the Tax Ombudsman to promote taxpayers’ rights, were laudable structural shifts.

He said, “The replacement of the old JTB with the JRB is the kind of structural overhaul Nigeria needs to harmonise revenue administration across all tiers of government, resolve disputes relating to revenue administration at the inter-government level, and give taxpayers a credible Ombud, represent a genuine shift in Nigeria’s fiscal ecosystem.

“These are no small achievements and I commend the visionary leadership of the our President, His Excellency, Asiwaju Bola Tinubu, and the leadership of the National Assembly for the tax reforms. I also commend the JRB for your energy and the conviction you brought into bringing these reforms to life.”

 Sanwo-Olu, who declared the 159th Meeting open, said Lagos State is a partner in the ongoing reform journey and will be willing to support collaborations within the revenue ecosystem designed to serve the interest of the country. 

He noted that Lagos State Internally Generated Revenue (IGR) has improved remarkably under his administration, adding that IGR now funds about 60 percent of the State’s capital expenditure.

The governor attributed the state’s IGR growth to the autonomy of the LIRS, investment in technology infrastructure, expansion of the tax net and building trust in taxpayers through compact service delivery to the public.

 Sanwo-Olu, who identified himself as an ambassador of the JRB to the Nigeria Governors’ Forum (NGF), said he would continue to advocate for autonomy for subnational revenue authorities,  emphasising that operational independence is a necessity for the optimal performance of state internal revenue authorities.

“As your ambassador, I will push my fellow governors again to understand and appreciate that it is only when you are given what you need to work with that they can reap the full benefits of your expertise.

“I will empahsise to them that you need a clear space to work, that you need independence and full tenure to work. These are necessary to enhance the confidence of the taxpayers, that of your subordinates and the public,” he said.

In a keynote address, the JRB Chairman, Dr. Zacch Adedeji, who was represented by the Executive Secretary of the Board, Mr. Olusegun Adesokan, applauded the remarkable performance of the Lagos State Internal Revenue Service (LIRS) in annual revenue collection under the administration of Governor Sanwo-Olu and the leadership of Mr. Ayodele Subair, as Executive Chairman of the LIRS.

He attributed the IGR  feat recorded by Lagos State to sustained reforms in the state’s revenue sector.

Adedeji said, “The remarkable performance of the Lagos State Internal Revenue Service is rooted in the visionary reforms initiated by His Excellency, Asiwaju Bola Ahmed Tinubu, during his tenure as Executive Governor of Lagos State.

“In 2025, Lagos State generated over N1.7 trillion, representing a 39 percent increase compared to the N1.2 trillion generated in 2024. This reflects sustained commitment to reform and institutional strengthening.”

The JRB, he noted, was particularly pleased by the fact that Lagos State revenue is effectively deployed by Sanwo-Olu to improve the welfare of citizens through investment in infrastructure, including a multi-modal transportation system, education, and food security, among other sectors.

Earlier in his welcome remark, the Executive Chairman of Lagos State Internal Revenue Service, Mr. Ayodele Subair, said the JRB plays a vital role in strengthening Nigeria’s tax administration, adding that the 159th Meeting of the Board hosted in Lagos State came at a pivotal time after the enactment of the new tax Acts.

 Subair said the visionary leadership and support of the governor to the LIRS had enhanced service delivery, and  positions Lagos State as a model in subnational revenue mobilisation in Nigeria.