Sanwo-Olu seeks state tax agencies autonomy, commends LIRS

Babajide Sanwo-Olu of Lagos has called for greater autonomy for tax agencies nationwide, while commending the Lagos State Internal Revenue Service (LIRS) for driving the state’s revenue growth.

In a statement on Thursday in Lagos, Sanwo-Olu was quoted to have made the call while hosting members of the Joint Revenue Board (JRB) at the State House, Marina, during its 159th meeting.

He said Lagos had recorded significant growth in internally generated revenue (IGR) through sustained reforms implemented by LIRS.

According to him, IGR now accounts for over 60 per cent of the state’s annual budget, reflecting the impact of deliberate policy measures.

The governor disclosed that Lagos generated about N1.3 trillion in revenue in 2024, representing a 45 per cent increase compared to the previous year.

He attributed the growth to investments in digital tax systems, expansion of the tax base and improved engagement with taxpayers.

“We can say that our internally generated revenue now accounts for well over 60 per cent of our budget.

“It is not by chance, but the result of consistent reforms, technology deployment and building trust with taxpayers,” he said.

Sanwo-Olu, however, stressed that for other states to replicate Lagos’ success, revenue agencies must be allowed to operate independently without political interference.

He urged governors to guarantee tenure security and operational freedom for tax administrators to enhance efficiency and public confidence.

“Revenue agencies need the space to work. Stability in leadership and independence are critical to building trust and delivering results,” he said.

The governor added that taxes paid by residents and businesses were being translated into visible infrastructure and social services across the state.

He cited projects such as rail lines, road networks, healthcare facilities and educational institutions as outcomes of effective revenue utilisation.

Earlier, Chairman of LIRS, Mr Ayodele Subair, said the JRB remained central to strengthening Nigeria’s tax system through improved coordination and reform implementation.

He noted that recent tax reforms had made collaboration among revenue agencies more critical.

“This meeting comes at a pivotal time, and the board is positioning itself to support effective implementation of new tax laws across all tiers of government,” he said.

Also speaking, the Executive Secretary of the JRB, Mr Olusegun Adesokan, commended Lagos for its strong revenue performance and sustained reforms.

He described the state as a benchmark for tax administration, noting that its revenue growth reflected long-term strategic planning.

According to him, Lagos’ internally generated revenue has grown significantly over the years, demonstrating how effective tax administration can drive development.

Adesokan said the state’s achievements underscored the importance of strong institutions and policy consistency in revenue mobilisation.

In his remarks, Mr Okon Okon, Executive Chairman of Akwa Ibom State Internal Revenue Service, appreciated the Lagos government for hosting the meeting and commended the state’s infrastructure development.

He highlighted participants’ experiences on key projects, including rail transportation and urban development initiatives, as evidence of effective use of public revenue.