Monthly IGR grew By 7,400% In 22 years – Lagos
The Lagos State Government said on Monday that its Internally Generated Revenue grew by 7,400 per cent between 1999 and 2021.
The Governor, Mr Babajide Sanwo-Olu, disclosed this at the 149th Joint Tax Board Meeting in Lagos.
According to a statement, the JTB is a quarterly conference of chairmen of inland revenue service from the 36 states of the federation and the FCT to appraise performance and deliberate on tax issues at various levels of government across the country.
Sanwo-Olu, who was represented by the Commissioner for Finance, Mr Rabiu Olowo, said Lagos remained the largest contributor to national non-oil revenues, by way of corporate income taxes, Value Added Tax, customs duties, and port charges, among others.
He said: “This is to be expected from the subnational entity that is the most populous in the country and is also the biggest commercial hub. However, in the subsequent re-distribution of resources, we do not see any reflection of the contribution of Lagos State.
“Our share in this redistribution fails to take into account the demographic and infrastructural burdens and pressures that accompany being the economic nerve-centre of the nation.”
He said the state, under the leadership of Asiwaju Bola Tinubu, commenced a transformational reform of its internal revenue process, within the ambit of the law.
He said, “The result is that since 1999 the Lagos Inland Revenue Service has undergone the most extensive tax administration reforms of any subnational government in Nigeria.
“I am pleased to let you know that Lagos State has grown its IGR from N600m monthly in 1999 to over N45bn monthly as of today, an astounding increase of 7,400 per cent. It all began with ensuring the foundational autonomy of the LIRS, which the Lagos State Revenue Administration Law, 34 2006 helped achieve.”
The Executive Chairman of LIRS, Mr Ayodele Subair, said the tax models applied in major countries of the world with a high level of compliance had been difficult to replicate in Nigeria.
He said, “However, effort is being made by all tax authorities to improve on the ease of doing business and simplification of tax administrative processes which will in turn significantly advance the tax compliance levels within the country.
“In order for the government to provide the necessary infrastructures to aid growth and development, there has to be co-operation by all stakeholders which would in turn occasion a shift in the way and manner by which tax is administered and ultimately sustain or increase tax revenue for the state.”