Tax reform committee chair urges data-driven property taxation as Sanwo-Olu backs stronger state-level implementation
Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, says Lagos State has the capacity to generate as much as ₦1 trillion annually from property taxation if the sector is properly structured and fully harnessed.
Oyedele made the disclosure on Tuesday while delivering the keynote address at the Tax Reform Summit 2026, themed “From Reforms to Results: The Lagos Implementation Roadmap, Creating a Tax Environment that Works for All.” The summit was organised by the Office of the Special Adviser on Taxation and Revenue in collaboration with the Lagos State Treasury Office.
He described property tax as one of the most reliable yet underutilised revenue sources available to subnational governments, noting that its effectiveness depends on transparency, accurate data, and predictable enforcement.
According to Oyedele, Lagos could unlock massive revenue by focusing on just two million taxable properties with an average valuation of ₦100 million, taxed at a modest rate of 0.5 per cent.
“That alone translates to ₦1 trillion every year invested back into communities,” he said. “And the beauty of property taxation is that it grows with development.”
Property tax linked to visible public services
Oyedele explained that properly implemented property taxation creates a self-sustaining cycle of development, where revenue generated is reinvested into infrastructure, which in turn increases property values and future tax receipts.
“When done right, property tax is hard to evade,” he said. “As government provides roads, water and other basic services, property values rise, living standards improve, and those same properties finance even more development.”
However, he stressed that success depends on key fundamentals such as proper property enumeration, credible valuation systems, transparent engagement with taxpayers and consistent enforcement.
Data identified as the backbone of reform
The tax reform advocate repeatedly underscored the importance of reliable data, describing it as central to expanding Lagos’ tax base and improving fiscal planning.
“Data is critical,” Oyedele said. “You need a credible database — not just of taxpayers, but of property values, employment data and income levels. These determine the true size of your tax base.”
He noted that Nigeria currently has fewer than 10 million active individual taxpayers nationwide, arguing that Lagos alone should be able to achieve that figure if data systems are properly developed.
“We cannot achieve meaningful reform if we don’t pay attention to data,” he added.
Call for harmonised tax laws and collaboration
Oyedele challenged Lagos to lead by example in adopting harmonised tax laws at the subnational level. He revealed that the Presidential Fiscal Policy and Tax Reform Committee, working with the Joint Revenue Board, has developed a model tax harmonisation law for states.
He disclosed that Ekiti, Zamfara, Anambra and Kano have already enacted the law and expressed optimism that Lagos would follow suit.
He also advocated for the consolidation of revenue collection under the Lagos State Internal Revenue Service, warning that allowing multiple agencies to collect revenue promotes inefficiency.
“Reform succeeds when states and local governments collaborate, rely on data, and reduce discretion,” he said.
Sanwo-Olu: Lagos ready to lead tax reform implementation
In his opening remarks, Governor Babajide Sanwo-Olu reaffirmed Lagos State’s commitment to driving the success of Nigeria’s tax reform agenda through effective implementation at the state level.
He said Lagos is aligning its systems with federal reforms aimed at harmonising tax laws, strengthening VAT administration and improving coordination across all tiers of government.
“Our focus is not just compliance, but execution that delivers real value to citizens and businesses,” Sanwo-Olu said. “In Lagos, tax reform is being treated as a governance reform built on simplicity, transparency, digital efficiency and fairness.”
The governor described taxation as a social contract, noting that voluntary compliance increases when citizens trust that revenues are responsibly managed and visibly reinvested.
He said Lagos continues to channel tax revenues into transport infrastructure, healthcare, education, security, environmental resilience and social protection programmes under the THEMES+ Development Agenda.
Push for unified revenue systems and higher targets
Earlier, the Special Adviser to the Governor on Taxation and Revenue, Abdul-Kabir Ogungbo, said the summit aimed to drive practical solutions, including the creation of a standardised revenue portal across all local governments and LCDAs in the state.
He said the system would integrate seamlessly with state revenue platforms and align with the national Tax Identification Number framework, using the National Identification Number as a unique identifier.
“This goes beyond revenue collection,” Ogungbo said. “It strengthens governance, planning and the ability to accurately identify citizens for social interventions.”
Highlighting Lagos’ economic weight, Ogungbo argued that the state’s current revenue and budget size fall short of its responsibilities.
With a population exceeding 30 million and a disproportionate share of Nigeria’s economic activity, he said Lagos must aim for annual revenue targets between ₦10 trillion and ₦15 trillion to meet its development needs.
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