Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, has revealed that fewer than 10 million individuals actively pay taxes across Nigeria, highlighting the country’s limited tax base and the pressing need for improved data systems at state and local levels.
Speaking on Tuesday at the Tax Reform Summit 2026 in Lagos, themed “From Reforms to Results: The Lagos Implementation Roadmap, Creating a Tax Environment that Works for All,” Oyedele stressed the role of reliable data in broadening revenue collection. The event was organised by the Office of the Special Adviser on Taxation and Revenue in partnership with the Lagos State Treasury Office.
“In Nigeria today, the number of active individual taxpayers is under 10 million for the whole country,” Oyedele stated. He added that Lagos State alone, given its population and economic activity, should ideally have a similar number of active taxpayers to support sustainable development.
Oyedele emphasised that credible databases—for properties, individual earners, and fiscal operations—are vital for effective revenue mobilisation. Without accurate data, efforts to expand the tax net remain hampered, leading to over-reliance on federation allocations by subnational governments.
He particularly spotlighted property taxation as a stable yet under-exploited revenue source for states and local governments. According to Oyedele, Lagos could generate up to ₦1 trillion annually from property taxes if properly harnessed. He illustrated this potential with a calculation: assuming two million taxable properties valued at an average of ₦100 million each, and applying a modest 0.5 per cent tax rate, the state would yield ₦1 trillion yearly.
Such funds, he noted, could be channelled into infrastructure, education, and public services, fostering a virtuous cycle of improved property values and better living standards. Success in this area, however, requires thorough property enumeration, fair valuation, transparent processes, and consistent enforcement.
Oyedele also urged Lagos to adopt a model tax harmonisation law drafted by his committee and the Joint Revenue Board, which has already been embraced by states like Ekiti, Zamfara, Anambra, and Kano. Harmonising revenue collection under bodies like the Lagos Internal Revenue Service would reduce inefficiencies and multiple taxation.
The summit aligns with the broader implementation of the Nigeria Tax Act 2025 and related reforms, set to take effect from January 2026. These changes aim to simplify the tax system, exempt low-income earners, and promote fairness while addressing inefficiencies rather than merely increasing rates.
Lagos State Governor Babajide Sanwo-Olu, in his remarks, reaffirmed the state’s commitment to the reforms, positioning Lagos as a leader in subnational implementation for economic growth and citizen benefits.
