Governor Babajide Sanwo-Olu of Lagos State has revealed that the annual budget of the state is now being funded largely by Internally Generated Revenue (IGR).
Speaking on Wednesday at the State House in Marina, Lagos, the Governor said revenue generated in the state from taxes specifically accounts for over 60 per cent of the appropriation act.
He also disclosed that in 2024, Lagos State earned over N1.3 trillion from IGR, allowing the government to provide basic amenities and others to residents.
Governor Sanwo-Olu attributed this achievement to the stable leadership at the Lagos State Inland Revenue Service (LIRS), charging his colleagues to emulate this.
“Governors need to give revenue agencies clear space to work. They need to give them that independence. They need to give them full tenure to do their work.
“It should not be a situation where a governor comes and wants to disrupt the tenure of the chairman. It is only when they do all of this that the confidence of taxpayers, the confidence of workers and subordinates in the system will be enhanced.
“I will be pushing my brother governors again for them to understand and appreciate that it is only when they give you what you need to work that they can get the benefits of the expertise that you all have,” Mr Sanwo-Olu said at the 159th meeting of the Joint Revenue Board (JRB) in the state.
The JRB, formerly known as the Joint Tax Board (JTB), is made up of the chairman of the Nigeria Revenue Service (NRS), chairmen of the 36 State Internal Revenue Services and the Chairman of the Federal Capital Territory (FCT), as well as representatives of key agencies including the Federal Ministry of Finance, National Identity Management Commission, Revenue Mobilisation, Allocation and Fiscal Commission, Nigeria Customs Service, Nigeria Immigration Service and the Federal Road Safety Corps.
Speaking further, the Governor said the 45 per cent increase in the IGR for 2024 was driven by reforms spearheaded by the LIRS, sustained investment in digital tax systems, expansion of the tax base, and improved engagement with taxpayers.
“We can say that our internally generated revenues now account for well over 60 per cent of our budget. It has not happened by sheer luck. It is the result of years of investment in digital tax systems, a push to expand our tax net, and building trust with our taxpayers,” he stated.
“For us, it is really about our citizens. It is about the people who have given us the trust to believe in us and to pay these taxes. My deputy and I are consistently committed to ensuring that we leave this place a lot better than we met it,” he added.
The chairman of LIRS, Mr Ayodele Subair, noted that Lagos’ hosting of the meeting again after five years reflected its economic importance.
“After a five-year interval, Lagos State is once again honoured to host this important gathering. This reflects the state’s leadership as Nigeria’s economic nerve centre,” he said.
On his part, the chairman of JRB, Mr Zacch Adedeji, represented by the Executive Secretary of JRB, Mr Olusegun Adesokan, commended Lagos for its revenue performance and governance reforms, noting that, “Prior to this, the state’s annual internal revenue was less than N94 billion. But today, Lagos generates over N1.7 trillion annually.”
“These achievements clearly demonstrate how strong revenue performance, when effectively managed, translates into tangible development outcomes for citizens,” he added.