By Chinedu Okafor, African Business Correspondent
Lagos State has the potential to generate as much as ₦1 trillion annually from property taxation if its untapped opportunities are fully harnessed, according to Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee.
Speaking at the Tax Reform Summit 2026 themed “From Reforms to Results: The Lagos Implementation Roadmap, Creating a Tax Environment that Works for All”, Oyedele stressed that property tax remains one of the most stable and underutilised revenue sources available to states and local governments.
He explained that with just two million taxable properties in Lagos, each valued at an average of ₦100 million, a modest tax rate of 0.5% could yield ₦1 trillion annually. “Property taxation is difficult to evade, grows with urban development, and directly funds public services. Every naira collected is reinvested into roads, water, and infrastructure, which in turn raises property values and living standards,” he said.
Oyedele emphasised the importance of data-driven governance, urging Lagos to lead in property enumeration, valuation, and transparent enforcement. He noted that Nigeria currently has fewer than 10 million active taxpayers nationwide, a figure Lagos alone should match given its economic scale.
He also revealed that the committee, in collaboration with the Joint Revenue Board, has drafted a model tax harmonisation law already adopted by states such as Ekiti, Zamfara, Anambra, and Kano, with Lagos expected to follow suit. “Revenue collection must be streamlined under the Lagos State Internal Revenue Service to avoid inefficiency,” he added.
Governor Babajide Sanwo-Olu, in his opening remarks, reaffirmed Lagos’ commitment to driving Nigeria’s tax reform agenda at the subnational level. He described taxation as a social contract, highlighting that compliance improves when citizens trust government accountability. “Our focus is not just compliance but execution that delivers real value. Tax revenues in Lagos are reinvested into transport, healthcare, education, security, and social protection programmes,” Sanwo-Olu stated.
Special Adviser on Taxation and Revenue, Abdul-Kabir Ogungbo, underscored the need for a standardised revenue portal across all local governments, integrated with the national Tax Identification Number system. He argued that Lagos’ budgetary estimates, currently below ₦5 trillion, are inadequate given its population and economic responsibilities. He proposed a target of ₦10–₦15 trillion annually to meet the developmental needs of over 30 million residents.
The summit concluded with a call for courage, consistency, and collaboration in implementing reforms. Oyedele reminded participants that Nigeria’s fiscal sustainability will not be decided in Abuja alone but across states and local governments, with property taxation serving as a cornerstone for inclusive growth.
