Chairman of the Presidential Fiscal Coverage and Tax Reforms Committee, Taiwo Oyedele, has stated that it was attainable for Lagos State to generate as much as N1tn yearly from property tax if the potential within the sector is harnessed.
Oyedele stated this on Tuesday in his keynote speech on the Tax Reform Summit 2026 titled, ‘From Reforms to Outcomes: The Lagos Implementation Roadmap, Making a Tax Setting that Works for All’, convened by the Workplace of the Particular Adviser on Taxation and Income and the Lagos State Treasury Workplace.
Whereas emphasising the necessity for standardisation, transparency, and harmonisation of tax practices to scale back compliance prices and enhance taxpayer confidence on the subnational ranges, Oyedele highlighted the potential for tax income from properties with simply two million taxable properties in Lagos valued at N100m, producing N1tn yearly in taxes.
He stated, “A part of what you need me to talk to can also be on property as a sustainable income anchor.
Property taxation is likely one of the most underutilised but secure income sources accessible to states and native governments.
When accomplished correctly, property tax is tough to evade. It grows with city improvement, so it’s funding itself and aligns fee with seen public companies. Each naira we gather, we make investments again into the group. As you present roads, potable water and different infrastructure, the worth of these properties goes up. Residing requirements go up, and in flip, they finance much more improvement. Nevertheless, success is determined by correct property enumeration, correct valuation, clear dealing and predictable enforcement. All of these should work collectively.”
Talking additional on property tax, Oyedele asserted that information is vital to bringing in property tax: “Knowledge is vital, a reputable database of taxpayers, and never simply taxpayers. The worth of property is a part of your tax base. How many individuals are employed and incomes revenue is a part of the scale of your tax base, together with a dependable valuation for these properties. I’ve stated this earlier than, and I’ll say it once more: if simply two million properties are taxable in Lagos State for property tax functions, and they’re value a mean of N100m, and also you tax at simply 0.5 per cent of the valuation. That’s N1tn yearly invested again into the group. It might probably solely develop.”
The tax man challenged Lagos State to display management because it pertains to information and the enactment of the authorized framework for tax operations on the subnational stage.
He asserted, “One vital space for Lagos State is to display management within the high quality of knowledge for fiscal and financial planning, from the property register to fiscalisation and the taxpayer database for people. I feel that, you already know, in Nigeria in the present day, the variety of lively particular person taxpayers is underneath 10 million for the entire nation. I feel that’s the quantity we should always have for Lagos State, and I feel we have to make that attainable. We can’t obtain all of those if we don’t take note of information.
“So, what’s my name to motion? I encourage us to concentrate on how greatest to make collaborative implementation work, not whether or not we need to collaborate. That query shouldn’t be accessible anymore. As soon as we’ve got the desire, we are going to at all times discover a manner. To function a authorized framework for collaboration, the Presidential Fiscal Coverage and Tax Reform Committee, working with the Joint Income Board, has drafted a mannequin tax harmonisation legislation for the consideration and enactment by states. So, we’re glad to have our distinguished lawmakers within the room. Ekiti State, Zamfara, Anambra and Kano have handed the legislation already of their respective states, so we expect Lagos State to be the subsequent. Income assortment throughout businesses throughout the state additionally must be harmonised into the Lagos State Inner Income Service. There’s a cause why the income company is aware of the best way to gather taxes. While you ask different folks to gather income in no matter type or form, you promote inefficiency, which doesn’t assist anybody. Reform succeeds when states and native governments collaborate, and we depend on information somewhat than intuition or discretion.”
Oyedele additionally emphasised the significance of subnationals to the tax reform, saying, “We (should) leverage know-how for transparency in order that service supply shouldn’t be solely seen but in addition commensurate to taxes. Collective tax reform shouldn’t be an occasion. It’s a course of, and it requires braveness, consistency and work. Everybody was doubtful that braveness was there for any reform, like taxes. Now that that has been cleared. In closing, the way forward for Nigeria’s fiscal sustainability can be determined not solely in Abuja but in addition in states and native governments throughout the nation. Nation, if we get some nationwide taxation rights, particularly harmonisation of taxes and the way we gather them, together with property taxation, we create a secure, truthful and predictable income base that helps progress, fairness and inclusive improvement.”
In his opening remarks on the summit, the Governor of Lagos State, Babajide Sanwo-Olu, additionally reiterated that the success of Nigeria’s tax reform agenda will rely largely on efficient implementation on the state stage, with the state positioning itself as a number one sub-national driver of the reforms.
“Because the Federal Authorities advances reforms to harmonise tax legal guidelines, strengthen VAT administration, enhance coordination throughout tiers of presidency, and separate tax coverage from administration, Lagos State is positioning itself as a number one sub-national within the implementation of those reforms. Our focus shouldn’t be merely compliance with new frameworks however efficient execution that delivers actual worth to residents and companies. For this reason the theme of this summit, ‘The Lagos Implementation Street Map’, is especially vital. It alerts our readiness to maneuver past coverage conversations to sensible implementation. In Lagos, tax reform is being approached as a governance reform, anchored on simplicity, transparency, digital effectivity, and equity.
“Taxation is finally a social contract. Folks comply willingly once they belief that the federal government is accountable, accountable, and responsive. In Lagos State, tax revenues are repeatedly reinvested into transport infrastructure, healthcare supply, training, safety, environmental resilience, and focused social safety programmes, all in alignment with our THEMES+ Improvement Agenda. As nationwide reforms place larger emphasis on consumption-based taxation, information integration, and taxpayer safety, Lagos is strengthening its methods to make sure ease of compliance, environment friendly dispute decision, and a predictable tax surroundings that encourages funding and innovation.”
Sanwo-Olu affirmed that the success of Nigeria’s tax reform journey will rely not solely on laws on the federal stage but in addition on efficient implementation on the state stage.
“Lagos State is able to play its management function by aligning coverage with apply, strengthening inter-governmental collaboration, and sustaining steady engagement with the non-public sector {and professional} our bodies,” he added.
The Particular Adviser to the Lagos State Governor on taxation and income, Abdul-Kabir Ogungbo, in his convener’s speech, spotlighted the answer anticipated from the summit.
He stated, “A vital final result we due to this fact search is the institution of a standardised income portal throughout all Native Governments/LCDAs, seamlessly interfacing with state income methods and absolutely aligned with the nationwide Tax Identification Quantity framework, utilizing the Nationwide Identification Quantity because the foundational identifier inside our ecosystem. As an illustration, a taxpayer in Ketu and one other in Alimosho needs to be distinctly and uniquely identifiable inside a centralised database.
Past income assortment, this functionality allows efficient governance. When social assist or palliatives are to be distributed, the State should have the ability to precisely establish beneficiaries throughout all Native Governments/LCDAs by way of a unified and credible information system. As well as, we intention to ascertain a clear and measurable framework for income mobilisation, one which clearly defines, on a need-to-know and need-to-use foundation, what the State and the Native Governments are capable of gather. This readability strengthens accountability, planning, and efficiency monitoring throughout all tiers of presidency throughout the State.”
Highlighting the place of Lagos within the financial dynamics of the nation, Ogungbo stated the state’s annual budgetary estimates needs to be greater.
“It might curiosity us all to notice that the cumulative funds of Convention 57, mixed with the funds of the state authorities, nonetheless revolves round lower than N5tn, which is under 10 per cent of the Federal Authorities’s funds trajectory, regardless of the size of duty borne by Lagos. This duty features a disproportionate share of Nigeria’s inhabitants, financial exercise, and infrastructure demand.
Moreover, after we place the Lagos State funds projection aspect by aspect with the Federal Authorities funds, this actuality underscores the pressing want to accentuate collective efforts in the direction of reaching a sustainable income goal for Lagos State within the vary of N10tn to N15tn yearly if we’re to satisfy our developmental obligations to over 30 million residents. This example additional highlights the urgency of collectively reforming income mobilisation to match the size, complexity, and dynamism of the Lagos economic system and its wants.”
