Tax Reforms: Lagos unveils revenue harmonisation framework from 65 to 9 taxes and levies

*The Lagos State Government proposes a nine single-digit taxes and levies payable for individuals and businesses, describing the move as an important step towards building taxpayers’ confidence, relieving their heavy tax burden and helping them to plan better going forward

Isola Moses | ConsumerConnect

In line with constitutional provisions and the Nigeria’s new Tax Acts, the Lagos State Government’s Office of the Special Adviser on Taxation and Revenue has proposed a single-digit nine taxes and levies payable for Lagosians and businesses in the cosmopolitan state.

ConsumerConnect reports the Lagos Government’s move is regarded as part of ongoing efforts at creating a tax ecosystem that works for both individuals and businesses.

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It is also a veritable avenue to clarity tax-related matters before the new tax laws become effective from January 1, 2026.

Abdul-Kabir Opeyemi Ogungbo, Special Adviser to Governor Babajide Sanwo-Olu of Lagos State on Taxation and Revenue, disclosed this while speaking Tuesday, December 23, 2025, at a two-day tax reform summit.

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Ogungbo, at the summit with theme: “The Lagos Implementation Roadmap”, affirmed that businesses have complained bitterly over the multiplicity and duplicity of taxes, and the proposed harmonisation will address this problem in the state.

The Special Adviser to the Governor also stated: “A single hospitality outfit is being visited by over 16 revenue-generating bodies at a go; things like this must stop.”

On Lagos revenue harmonisation framework

Unveiling the Lagos State revenue harmonisation framework, the Special Adviser to Governor on Taxation and Revenue said the proposed nine taxes will include income tax, stamp duties, property tax, road tax and haulage levy.

According to Ogungbo, others are economic development levy, harmonised levy (covering shops, slaughter slab fee, motor parks, domestic animal fee, bicycles, trucks, canoes, wheelbarrows and carts, liquor licences, TV/radio fees and any other levy payable to the local government), user charge (covering marriage, birth and death registration fees, naming of street fees, signage and mobile advertisements, sewage and refuse disposal fees, burial ground permit fees, religious places establishment fees and wharf landing charge) and daily ticketing (covering all market levies, including transporters’ tickets).

As regards the overarching objective of the effort, he stated this would aid taxpayer data centralisation and harmonise revenue operations across Lagos State and Local Government Areas (LGAs).

Ogungbo further revealed that the agency would set up a technical committee, and develop a legal framework to guide the integration before sharing the harmonisation checklist with stakeholders.

Besides, the propose revenue harmonisation framework would be integrated and deployed.

The Office as well noted the revenue agencies would be trained repeatedly on implementation.

Sanwo-Olu: Harmonised revenue framework to improve taxpayers’ confidence

In his address on the occasion, Governor Sanwo-Olu, represented by

Lawal Pedro (SAN), Lagos State Attorney-General and Commissioner for Justice, said the conversation with stakeholders would help businesses and residents be aware of what to expect in the New Year.

The governor harmonised confirmed that the taxes would become effective 2026.

He equally said the tax instruments should ensure full compliance.

The Lagos Governor urged transparency, and similar harmonisation at the national level, so that what applies in Lagos, for instance, applies everywhere else all over the Federation.

The governor noted: “The expected outcome of this summit is to have improved taxpayers’ confidence that will command voluntary compliance, because it is only when taxpayers pay tax that the different arms of government can begin to talk about distribution.

“We also want to broaden our tax base, increase internally generated revenue (IGR) and, if not totally eliminate, at least reduce multiplicity of taxes and levies as much as possible.”

Speaking at the summit also, Ayodele Subair, Executive Chairman of the Lagos State Internal Revenue Service (LIRS) described the event as an important step towards building taxpayers’ confidence, relieving the heavy tax burden on individuals, businesses, and helping them to plan better going forward.

Task of reducing Lagos payable taxes from 65 to nine

Revealing that the proposed harmonisation seeks to trim the current Lagos State taxes from 65 to nine, he said this will go a long way in relieving pressures on businesses while also addressing multiplicity and duplicity of levies.

He assured that a major thrust of the ongoing tax reform is to alleviate poverty, especially with regard to food, accommodation and transportation, which he said are three key factors that affect every individual and drive inflation.

Adding that most of the abovementioned were exempted from VAT before, he said by 2026 they will be zero-rated, meaning no sales tax will be paid when these categories of services are bought or paid for.

He said with the current formula being proposed, everyone, including the farmer that grows the food in the farms, benefits intrinsically, unlike what obtains currently.

The summit also featured technical presentations and discussions from relevant government agencies, with Ogungbo noting that they intend to carry all the local governments and councils along to ensure full compliance, especially at that level.

Chairperson, Conference 57 Lagos, Abdullahi Sesan Olowa, vowed that the issue of duplicity of taxes will be tackled right from the grassroots, and he intends to ensure full compliance when the harmonised taxes come into effect.

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