The Governor of Lagos State has called for the expanded inclusion of Micro, Small and Medium Enterprises (MSMEs) and high-net-worth individuals in Nigeria’s tax system to tackle widespread tax evasion and improve revenue collection. Speaking through his Special Adviser on Taxation and Revenue, the governor delivered this message at the 27th Annual Tax Conference of the Chartered Institute of Taxation of Nigeria (CITN) in Abuja.
He pointed to a provision in the ongoing tax reform bills that exempts employees earning below N800,000 annually from personal income tax as a gap that needs to be addressed. According to him, this exemption, if not matched with deliberate enforcement strategies, could lead to further evasion by those hiding under informal and start-up sectors. He stressed the importance of intensifying direct assessments on wealthy individuals to stem the growing trend of tax avoidance.
The governor also urged state governments to take the lead in implementing the tax reforms rather than waiting for direction from the federal level. He called for updated tax laws, greater use of technology, investment in data analytics, and human capital development to fully realize the benefits of the reforms.
Highlighting Lagos State’s own efforts, the governor credited the state’s internally generated revenue (IGR) milestone of N1 trillion in 2024 to digital reforms and a citizen-centric tax system. He noted that by using digital platforms and artificial intelligence tools such as chatbots, as well as integrating data analytics through the Lagos Revenue Portal, Lagos has made tax compliance more convenient and transparent for residents.
He also cited other initiatives such as the N10 billion collaboration with the Bank of Industry to support MSMEs, and the passage of the Lagos State Electricity Law in December 2024 aimed at promoting energy independence and reducing reliance on the national grid.
In reaffirming his support for ongoing fiscal reforms, he described them as vital to Nigeria’s ambition of reaching a $1 trillion economy. He commended President Bola Tinubu for his leadership in tax and economic reforms, and lauded CITN for its sustained commitment to building a stronger tax culture across the country.
