The Lagos State Internal Revenue Service (LIRS) has been given a N1.4 trillion tax target revenue to enable the government implement its fiscal policies aimed at promoting socioeconomic growth. For a state that has been in the forefront of revenue generation rivalled only by the Federal Government, analysts believe the target is indeed realistic.
The LIRS’s mission is to provide accurate, fair, and timely information to the state’s residents, business community, and government agencies. Its vision is to be a respected, efficient, transparent, and effective internal revenue agency.
In January, Governor Babajide Sanwo-Olu signed the ₦3.366 trillion 2025 appropriation bill into law, and then stated that the budget aims to address infrastructure, economic diversification, and other critical sectors in the state. He assured that the state government would live up to the responsibility of delivering governance that is ‘respectful of and responsive to the people at all times’.
Of the total projected ₦2.342 trillion from total internally generated revenue, the LIRS is expected to bring into the coffers N1.4 trillion. Under Mr. Ayo Subair as the Chairman of LIRS, the agency has made commendable progress by reaching that milestone.
Analysing the trajectory of LIRS over the past five years reveals a consistent growth pattern with their revenue earnings showing a steady upward trend. Interestingly, last year, the agency surpassed its target well ahead of the set date. At a public forum in the fourth quarter of last year, Subair said that the service met its revenue target for the first nine months of the year 2024.
According to data obtained from the National Bureau of Statistics (NBS), the LIRS generated approximately N815.86 billion in revenue during 2023, representing the highest Internally Generated Revenue (IGR) among all states. The total IGR for Nigeria in 2023 was N2.43 trillion out of which the Lagos State contribution alone amounted to 33.6%.
Apparently justifying the target for the 2025 fiscal year, the Chairman of the state House of Assembly Joint Committee on Economic Planning and Budget, Hon. Saad Lukman Olumoh said the essence of powering development projects using internally generated revenue is for the government to do more without taking loans.
Olumoh, who spoke at a public forum in Lagos recently, said: ‘At this year’s budget signing ceremony, I expressed to Mr. Governor that Lagos State has reached a remarkable level of excellence in revenue generation. Our agency, the LIRS has become the first subnational body to exceed the N1 trillion mark. I am confident that they can achieve even greater results’.
He said the state government has made capital expenditure a priority, highlighting that a significant portion of the funds allocated for infrastructure and long-term economic growth will be sourced from the revenue target achieved by LIRS.
Expatiating, Olumoh said that the approach of targeted spending combined with fiscal caution implies a strategy crafted to support growth while safeguarding macroeconomic stability.
On what he considers the main achievements for 2024 fiscal year, the lawmaker said: ‘The activities of the state government are based on an agenda we refer to as the “THEMES PLUS’ agenda. Mr. Governor, Babajide Sanwo-Olu introduced this agenda for his second term. The components of this agenda encompass transportation, infrastructure development, health, poverty alleviation, and education.
‘In 2024, particularly within the House of Assembly, we have examined the policies of the new administration. It is essential to recognise that our esteemed leader and the “city boy”, as we affectionately call him, President Bola Ahmed Tinubu, assumed office in 2023. His policy framework introduced the Renewed Hope Agenda, which serves as the foundation for our initiatives in the country. The core message was that we cannot persist in our traditional methods; otherwise, we risk the financial insolvency of the nation.
‘Consequently, he implemented several policy reforms, particularly concerning fuel subsidy removal, the deregulation of the foreign exchange market, and various other measures aimed at enhancing Nigeria’s global competitiveness. These changes have had a widespread impact, affecting both individuals and the government alike. As a result we have a lot of infrastructural projects, roads, bridges that are being constructed’.
He said the government took a very prudent decision to set aside some money for economic shocks as well as diversification.
As to how the revenue target would be achieved, the state’s Commissioner for Economic Planning and Budget, Mr. Ope George and his counterpart in Finance, Abayomi Oluyomi said the state government plans to implement some strategies.
According to George, the LIRS is expected to contribute 63 percent (N1.4 trillion) of the projected IGR, while other Government Ministries, Departments, Agencies, and MDAs will generate about 37 per cent (N830.177 billion).
The revenue target, he emphasised, would be achieved by deepening revenue and increasing the tax net by deploying technology, economic intelligence, data gathering and analysis, among other initiatives.
‘We believe huge revenue-generating opportunities exist in the informal sector, tourism, real estate, transportation, and trade.
‘The deficit of ₦398.662 billion is projected to be funded by Internal, External Loans, Bond Issuance and others’, George stated.
According to the commissioner, the deficit funding Sources Provided are External Loans, N28.751 billion; Internal Loans, N203.831 billion; Bond Issuance, N150.000 billion; and others, N16.080 billion.
Just like in other sectors of governance, Lagos is leading from the front in revenue generation.
