Sanwo-Olu hails LIRS, seeks tax agency autonomy nationwide

Lagos State Governor Babajide Sanwo-Olu has lauded the Lagos State Internal Revenue Service (LIRS) as a pivotal engine driving the state's remarkable economic expansion. Speaking at a meeting of the Joint Revenue Board, Governor Sanwo-Olu highlighted the significant achievements in internally generated revenue (IGR), which now constitutes over 60 percent of the state's annual budget. This impressive growth, marked by a 45 percent increase in 2024 to N1.3 trillion, is attributed to deliberate reforms, sustained investment in digital tax systems, an expanded tax base, and enhanced taxpayer engagement spearheaded by the LIRS.

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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.

Governor Sanwo-Olu's commendation of the LIRS is not merely an acknowledgment of past successes but a strategic call for a nationwide replication of Lagos's fiscal model. He passionately argued for greater autonomy for tax agencies across Nigeria, emphasizing that such independence is crucial for other states to emulate Lagos's revenue generation success. The governor urged his fellow state governors to grant revenue authorities full tenure and operational freedom, warning that frequent leadership changes and political interference severely undermine efficiency and erode public trust in tax systems.

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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.

This push for autonomy is rooted in the understanding that a stable, independent tax administration is fundamental to building taxpayer confidence and ensuring consistent revenue flow. Sanwo-Olu stressed that when tax agencies are empowered to operate without undue political pressure, they can better leverage their expertise, leading to improved collection and, consequently, more visible infrastructure and social development projects. Lagos serves as a compelling case study, demonstrating how robust revenue generation, when linked to tangible development outcomes, fosters a stronger economy and enhances the quality of life for its citizens.

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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.