Lagos State Governor Babajide Sanwo-Olu has advocated for an expanded tax base that includes Micro, Small, and Medium Enterprises (MSMEs) and high-net-worth individuals.
This initiative aims to curb tax evasion and bolster government revenue. Speaking at the 27th Annual Tax Conference of the Chartered Institute of Taxation of Nigeria (CITN) in Abuja, Sanwo-Olu emphasised the necessity for deliberate strategies to incorporate taxpayers currently operating outside the tax system.
He highlighted a provision in the proposed tax reform bills that exempts employees earning below N800,000 annually from Personal Income Tax, cautioning that without robust implementation frameworks, such exemptions could create loopholes.
Sanwo-Olu urged state governments to proactively engage in the reform process, emphasising the importance of updating tax laws, deploying technology, and training personnel to drive compliance and accountability.
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Lagos State’s success in tax collection, achieving a N1 trillion internally generated revenue in 2024, was attributed to digital transformation, improved taxpayer experience, and the use of artificial intelligence in service delivery. The Lagos Revenue Portal has unified tax operations and simplified processes, encouraging voluntary compliance.
Additionally, Sanwo-Olu launched a N10 billion MSME support fund in collaboration with the Bank of Industry, aimed at empowering small businesses and expanding the state’s economy. He also referenced the Lagos Electricity Law enacted in December 2024, designed to reduce dependence on the national power grid and promote energy self-sufficiency.
These reforms are part of broader efforts to build Nigeria’s fiscal capacity and achieve the national target of a $1 trillion economy.
