Lagos Can Generate N1 Trillion Yearly from Property Tax, Says Fiscal Expert Taiwo Oyedele

Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has stated that Lagos State has the potential to generate up to N1 trillion annually by fully optimizing property tax.

He made the declaration at the Tax Reform Summit 2026, themed “From Reforms to Results: The Lagos Implementation Roadmap.” Oyedele emphasized that property tax is a stable and significantly underutilized revenue stream for state and local governments.

The N1 Trillion Formula
Oyedele presented a clear calculation: with an estimated two million taxable properties in Lagos, each valued at an average of N100 million, a tax rate of just 0.5% would yield the N1 trillion annual revenue. This income, he stressed, could be reinvested directly into community development projects.

Blueprint for Successful Reform
For this potential to be realized, Oyedele outlined key prerequisites: proper property enumeration, accurate valuation, full transparency, and predictable enforcement. He urged Lagos to become a national leader in data quality for fiscal planning, pointing out that while Lagos’s population is vast, the number of active taxpayers across Nigeria remains below 10 million.

He called for collaborative reforms, including the harmonization of all revenue collection under the Lagos State Internal Revenue Service (LIRS) to eliminate inefficiencies. The adoption of technology was highlighted as critical for ensuring transparency and demonstrating clear links between tax payments and improved public services.

Government Alignment and Ambitious Targets
Lagos State Governor Babajide Sanwo-Olu echoed the vision, stating that successful state-level implementation is crucial for Nigeria’s overall tax reform success. He framed tax reform as an essential governance reform centered on simplicity, transparency, digital efficiency, and fairness, with revenues funding the state’s THEMES+ Development Agenda in infrastructure, healthcare, education, and security.

Adding to the roadmap, the Special Adviser on Taxation, Abdul-Kabir Ogungbo, detailed plans to establish a standardized revenue portal across all 57 local governments, integrated with national identification systems to boost collection and governance.

Ogungbo underscored the scale of the challenge, noting that Lagos, despite its disproportionate economic role in Nigeria, operates on a budget under N5 trillion. He called for a collective push to achieve a sustainable annual revenue target between N10 trillion and N15 trillion to adequately meet the developmental needs of its over 30 million residents.