Oyedele Shows How Lagos State Can Double Tax Revenue by Taxing Skit Makers, Content Creators, Others
- Lagos state has set a tax revenue of N2.79 trillion for 2025, but Tax Reform chairman Taiwo Oyedele says it's too small
- Oyedele explained how Lagos state taxes only amount to 2% of its GDP, showing many revenue gaps
- He explained how the state government can take bold actions to double the revenue to N5 trillion
Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
Lagos state is not generating sufficient revenue to match the volume of commercial activities that happen in the state.
This is according to the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele.
While giving the keynote address titled; ‘Bridging the Revenue Gap in Lagos: Innovative Pathways to Enhanced Revenue Mobilisation’ at the official launch of the Lagos Economic Development Update (LEDU) 2025 in Lagos, Oyedele noted that given the Lagos state Gross Domestic Product (GDP), the state should be collecting more revenue to match the plans ahead.
Source: Getty Images
He explained that the revenue Lagos state collects is less than 2% of the GDP, indicating that there are gaps to be covered.
Recall that Lagos state recently became the second largest economy in Africa with a GDP of $259 billion.
Meanwhile, the LEDU 2025 projects that Lagos state GDP will grow from N54.77 trillion in 2024 to N66.47 trillion in 2025, and a 5.02% to 6.49% real GDP growth.
Oyedele added that if Lagos state will achieve the anticipated revenue of N2.79 trillion in 2025, revenue sources need to be diversified, and the state must become more attractive to foreign investors, This Day reports.
How Lagos state can generate N5 trillion tax revenue annually
Oyedele remarked that Lagos state is capable of generating up to N5 trillion revenue from taxation but advised the government not to tax businesses to death.
He said;
“A better approach to taxation is not to tax the seed, but the fruit. Let businesses grow, and tax them fairly on their successes.”
He called on the state government to widen its income tax collection net by harmonizing tax and leveraging available technology to capture more high-income earners.
Lagos state to tax skitmakers, property owners
Source: Getty Images
Oyedele also recommended that the government consider formalizing property taxation to improve revenue generation.
The tax reform chairman also urged the government to formalize revenue collection from the informal sector, including digital entrepreneurs like content creators, skit makers, and others.
He noted that this would require bold action from the state government.
Lagos state becomes second-largest economy in Africa
In related news, the number one commercial city in Nigeria, Lagos state, has attained a new position in the ranking of Africa’s economy.
This is thanks to the Dangote Petrochemical Refinery that recently started operations in the state, pushing the Gross Domestic Product (GDP) ratio up to $259 billion.
Lagos state is now second on the list of largest economies in Africa, second only to Cairo, Egypt's capital city.
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Source: Legit.ng
