By Charles Maduka
Governor Babajide Sanwo-Olu of Lagos State has called for the expansion of Nigeria’s tax base to include more Micro, Small and Medium Enterprises (MSMEs) and wealthy individuals, as part of efforts to curb tax evasion and increase government revenue.
Speaking through his Special Adviser on Taxation and Revenue, Ogungbo Abdul-Kabir Opeyemi, at the 27th Annual Tax Conference of the Chartered Institute of Taxation of Nigeria (CITN) held in Abuja, Sanwo-Olu highlighted the need for deliberate strategies to capture taxpayers currently operating outside the tax system.
He noted that a provision in the proposed tax reform bills, which exempts employees earning below N800,000 annually from Personal Income Tax, could create loopholes if not backed by strong implementation frameworks.
“There’s a need to bring MSMEs and high-net-worth individuals into the tax net. This will require a coordinated effort in direct assessment and policy enforcement to prevent further revenue loss,” he said.
The governor encouraged state governments to take a proactive role in the reform process, urging them not to rely solely on the Federal Government.
“It is crucial for sub-nationals to lead the charge and commit to updating tax laws, deploying technology, and training personnel to drive compliance and accountability,” he added.
Sanwo-Olu also used the platform to showcase Lagos State’s success in tax collection, attributing the state’s N1 trillion internally generated revenue in 2024 to digital transformation, improved taxpayer experience, and the use of artificial intelligence in service delivery.
According to him, the Lagos Revenue Portal has helped unify tax operations and simplify the process for citizens, encouraging voluntary compliance.
He also pointed to other economic initiatives, including a N10 billion MSME support fund in collaboration with the Bank of Industry and the Lagos Electricity Law enacted in December 2024, aimed at reducing dependence on the national power grid.
“These reforms are fundamental to building Nigeria’s fiscal capacity and achieving the national target of a \$1 trillion economy,” Sanwo-Olu stated.
He praised President Bola Tinubu for steering the country’s economic and tax reforms and lauded CITN for its role in promoting tax awareness and discipline across the country.
Leave a Reply