Governor Babajide Sanwo-Olu has hailed the performance of the Lagos Internal Revenue Service, describing it as a critical driver of the state’s economic growth while seeking greater autonomy for tax agencies across the country.

Mr Sanwo-Olu spoke at the State House, Marina, while hosting members of the Joint Revenue Board for its 159th meeting, which started on Monday.

The JRB formerly known as the Joint Tax Board, is composed of the executive chairman of the Nigeria Revenue Service, chairmen of the 36 states’ internal revenue service and the chairman of the Federal Capital Territory, as well as representatives of key agencies including the Federal Ministry of Finance, National Identity Management Commission, Revenue Mobilisation, Allocation and Fiscal Commission, Nigeria Customs Service, Nigeria Immigration Service and the Federal Road Safety Corps.

Mr Sanwo-Olu noted that Lagos had continued to record significant growth in internally generated revenue due to deliberate reforms implemented by LIRS, adding IGR now accounts for over 60 per cent of the state’s annual budget.

He said, “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.”

The governor further disclosed that Lagos generated N1.3 trillion as IGR revenue in 2024, representing a 45 per cent increase over the previous year, highlighting the reforms spearheaded by the LIRS.

While attributing the growth to sustained investment in digital tax systems, expansion of the tax base, and improved engagement with taxpayers, Mr Sanwo-Olu stated that tax agencies must be allowed to operate independently without undue political interference for maximum performance.

Mr Sanwo-Olu urged other governors to grant full tenure and operational freedom to revenue authorities, warning that frequent leadership disruptions could undermine efficiency and public confidence.

“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.

“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,” he added.

LIRS’ chairman, Ayodele Subair, said the JRB had become central to strengthening Nigeria’s tax system through coordination and the implementation of reforms.

Noting the new tax laws had simplified coordination, Mr Subair stated, “This meeting comes at a pivotal time following the enactment and implementation of the new tax laws. The JRB is positioning itself to support effective implementation by strengthening coordination across all tiers of government.”