Lagos is one of the most important cities in Nigeria and Africa. As the commercial capital and the economic hub of West Africa it generates about 30% of Nigeria’s GDP. As a mega-city, which requires development that is commensurate to its status, there is an enormous demand on the leadership of the state to design economic policies that will constantly guarantee an increase in the resources available at its disposal for the growth of the state .
To drive that, Governor Babajide Sanwo-Olu’s administration kicked off with a THEMES agenda for the state which later metamorphosed into THEMES+, meaning that resources will be expended to develop sectors like Traffic Management and Transportation, Health and Environment, Education and Technology, making Lagos a 21st century Economy, Entertainment and Tourism as well as Security and Governance and Inclusion which are the pillars of the agenda. The agenda will require that Lagos generates enough revenue to be able to meet the demand of the focal sectors, hence the need to set a revenue target that is realistic and achievable without over taxing the citizens.
Understanding the assignment, Sanwo-Olu and his team put in place a competent leadership to oversee the Lagos State Internal Revenue Service (LIRS), complemented by a motivated work force to effect an efficient tax collection system driven by technology, enforcing compliance backed by the law and implementing transparent business friendly tax policies.
As the internally generated revenue drive improved, the government was able to balance taxation with economic stimulus by prioritising spending on projects with a high rate of social reform in order to mitigate the potential adverse effects of tax hikes on economic growth. The government has been able to strategically allocate resources to sectors that yield significant social benefits such as transportation, education, construction, health care, creative economy, tourism, and agriculture in its yearly budget to stimulate economic activities, create employment opportunities and improve the wellbeing of Lagosians.
Having targeted N1.251 trillion in internally generated revenue, plus total federal transfer of N596 billion in 2024, LIRS recently announced that it surpassed the N1 trillion target given to it by the government, confirming Fitch rating forecast that Lagos’ operating revenue will increase by about 9-10% in 2023 – 2027 as the state has witnessed a steady increase in Internally Generated Revenue (IGR) from N500 billion in 2021 to over N1 trillion in 2024. It is indeed a milestone for a state that in the last 6 years has experienced different economic disruption which has adversely affected its projected growth but has shown resilience through creative economic blueprint and this has attracted commendation from well meaning Lagosians .
Former Chairman of the state House of Assembly Committee on Economic Planning and Budgeting, Hon. Lukman Sa’ad Olumoh, alongside former Chairman of the House Committee on Finance, Hon. Femi Saheed, lauded LIRS and its Executive Chairman, Mr. Ayodele Subair, for their exemplary leadership and dedication to enhancing the state’s revenue performance. Olumoh described the achievement as a testament to the dedication and expertise of the LIRS team. He emphasised that the state has set a benchmark in revenue collection, serving as a model for other states to emulate. Representing the Ajeromi-Ifelodun Constituency I in the Assembly, he praised Subair for fostering a culture of efficiency and innovation within the agency, which has significantly contributed to its success.
During the 2024 budget signing ceremony, Olumoh conveyed to the governor that the state has reached an exceptional level in revenue generation. He acknowledged LIRS’ historic achievement of surpassing the N1 trillion mark and expressed confidence in the agency’s ability to exceed future targets. He further urged the state government to sustain its support for LIRS, emphasising that continued improvements in revenue collection could reduce reliance on external borrowing.
Olumoh further said: ‘You cannot expect remarkable results without placing the right people in key positions. LIRS is managed by a team of highly skilled professionals. While it operates as a government agency, its structure and operations reflect global best practices. The agency has evolved into a world-class institution, moving from Good Shepherd’s House to the state-of-the-art Revenue House. A visit to its facilities will reveal an environment that fosters excellence. Under the leadership of Mr. Ayodele Subair, a visionary and dedicated professional, LIRS has achieved remarkable success. The agency’s work culture and improved operational environment have been instrumental in reaching this milestone’.
Looking ahead, Olumoh noted that, based on LIRS’s consistent performance, the revenue target for 2025 has been set at N1.4 trillion. He assured that as Lagos’s economy continues to expand and more employment opportunities are created, this growth in revenue collection would not impose additional burdens on residents but rather result from enhanced tax compliance and structured reforms.
‘LIRS has demonstrated steady growth over the past five years. We have set a revenue target of N1.4 trillion for 2025, and I am confident that the agency can surpass this goal. Lagos State has the capacity to generate over N4 trillion in internal revenue without negatively impacting its residents’, he added.
He also highlighted the role of upcoming tax reforms at the federal level, noting that the Joint Tax Board would ensure a well-structured tax administration system. He reassured the public that no adverse fiscal policies would be introduced, emphasising that the focus remains on improving compliance and fostering a positive tax culture.
In a formal congratulatory letter addressed to Subair, Saheed, who represents Kosofe II Constituency, commended the LIRS team for their dedication, resilience, and strategic approach to revenue collection. He reiterated the Assembly’s commitment to providing the necessary legislative support to enable the agency to achieve even greater success.
‘I extend my heartfelt congratulations to you and your forward-thinking management team for surpassing the N1 trillion revenue mark in 2024. My colleagues and I commend your resilience, transparency, and commitment to excellence. Your achievements bring immense pride to Lagos State, and I am confident that 2025 will be even more rewarding. As a key revenue agency, we remain dedicated to supporting your efforts in achieving greater milestones’, the letter stated.
With this historic achievement, LIRS continues to reinforce its position as a leader in revenue generation, setting new standards for tax administration in Nigeria. As the revenue continues to grow, the government will also be able to meet its obligations to Lagosians by providing options in intermodal transportation, free primary healthcare and maternal health care, improved education, food security, empowerment schemes, stimulating both creative and digital economy and making sure that no one is left behind .
In Lagos your tax indeed works for you!
