Sanwo-Olu spoke at the State House, Marina, while hosting members of the Joint Revenue Board (JRB) for its 159th meeting, which began on Monday, April 20, 2026.

The Joint Revenue Board (JRB) formerly known as the Joint Tax Board (JTB), is made up of the Executive Chairman of the Nigeria Revenue Service (NRS), chairmen of the 36 State Internal Revenue Services and the Chairman of the Federal Capital Territory (FCT), as well as representatives of key agencies including the Federal Ministry of Finance, National Identity Management Commission, Revenue Mobilisation, Allocation and Fiscal Commission, Nigeria Customs Service, Nigeria Immigration Service and the Federal Road Safety Corps.

The governor said Lagos had continued to record significant growth in internally generated revenue due to deliberate reforms implemented by LIRS, noting that IGR now accounts for over 60 per cent of the state’s annual budget.

Sanwo-Olu disclosed that Lagos generated N1.3tn as internally generated revenue in 2024, representing a 45 per cent increase over the previous year, driven by reforms spearheaded by the LIRS.

He attributed the growth to sustained investment in digital tax systems, expansion of the tax base, and improved engagement with taxpayers.

“We can say that our internally generated revenues now account for well over 60 per cent of our budget. It has not happened by sheer luck. It is the result of years of investment in digital tax systems, a push to expand our tax net, and building trust with our taxpayers,” the governor said.

The governor, however, stressed that for other states to replicate Lagos’ success, tax agencies must be allowed to operate independently without undue political interference.

He urged state governors to grant full tenure and operational freedom to revenue authorities, warning that frequent disruptions in leadership could undermine efficiency and public confidence.

Sanwo-Olu said,

“Governors need to give revenue agencies clear space to work. They need to give them that independence. They need to give them full tenure to do their work. It should not be a situation where a governor comes and wants to disrupt the tenure of the chairman. It is only when they do all of this that the confidence of taxpayers, the confidence of workers and subordinates in the system will be enhanced. I will be pushing my brother governors again for them to understand and appreciate that it is only when they give you what you need to work that they can get the benefits of the expertise that you all have.”

The governor also said taxes paid by residents and businesses were being translated into visible infrastructure and social projects across the state, stressing that Lagos had become a model for linking revenue generation with development.

He said,

“For us, it is really about our citizens. It is about the people who have given us the trust to believe in us and to pay these taxes. My deputy and I are consistently committed to ensure that we leave this place a lot better than we met it.”

Highlighting projects funded through public revenue, the governor cited the Blue and Red Rail Lines, road expansion projects, hospitals and new universities.

He said Lagos was building a multi-modal transportation system that would combine rail, water transport and buses to improve movement across the state.

Earlier, Ayodele Subair, chairman of the Lagos State Internal Revenue Service (LIRS), said the Joint Revenue Board had become central to strengthening Nigeria’s tax system through coordination and reform implementation.

He added that the new tax laws had made coordination even more urgent.

“This meeting comes at a pivotal time following the enactment and implementation of the new tax laws. The JRB is positioning itself to support effective implementation by strengthening coordination across all tiers of government,” he said.

Subair noted that Lagos’ hosting of the meeting again after five years reflected its economic importance.

“After a five-year interval, Lagos State is once again honoured to host this important gathering. This reflects the state’s leadership as Nigeria’s economic nerve centre,” he said.

Speaking on behalf of the Chairman of the Joint Revenue Board, Zacch Adedeji, the Executive Secretary of JRB, Olusegun Adesokan, commended Lagos for its revenue performance and governance reforms.

He said, “It is no surprise that Lagos State Internal Revenue Service remains the leading subnational revenue authority in Nigeria.”

Adesokan added that Lagos’ revenue growth reflected long-term reforms.

“Prior to this, the state’s annual internal revenue was less than N94bn. But today, Lagos generates over N1.7tn annually,” he said.

He noted that the increase represented a 39 per cent rise year-on-year.

“These achievements clearly demonstrate how strong revenue performance, when effectively managed, translates into tangible development outcomes for citizens,” he said.

Adesokan further described Lagos as a benchmark for tax administration in Nigeria.

“Your sustained support for tax administration underscores the high priority you accord effective revenue administration and its critical contribution to sustainable development,” he said.

Okon Okon, the executive chairman, Akwa Ibom State Internal Revenue Service, thanked Governor Sanwoolu for hosting the meeting at he highlights the positive experiences of the JRB members in Lagos, especially the Blurail train ride from Marina to Mile 2 and a visit to the Eko Atlantic City.

In a public notice, LIRS stated that the requirement is backed by Section 24(f) of the 1999 Constitution (as amended) and further reinforced by Section 13 of the Nigeria Tax Administration Act (NTAA) 2025, which mandates all taxable individuals, whether or not they have tax liabilities, to file annual returns.

According to LIRS, taxpayers are expected to complete the filing process via its e-tax platform before the deadline.

The returns must include a duly completed self-assessment form, declaration of income from all sources, details of personal reliefs, full tax computation, and evidence of tax payment where applicable.

For individuals earning income from business, trade, profession, or vocation, the agency added that audited financial statements or duly attested accounts must also be submitted.

The tax authority emphasized that compliance is mandatory, warning that failure to file returns within the stipulated timeline will attract a penalty of ₦100,000 in the first instance and ₦50,000 for each subsequent month of default, alongside other enforcement measures under the NTAA 2025.

LIRS urged taxpayers to take advantage of its digital platform and support channels to ensure timely compliance, reiterating its commitment to improving tax administration and revenue generation in the state.

This initiative, part of the T.H.E.M.E.S. PLUS agenda, is included in the government’s broader efforts to provide essential services such as affordable housing, efficient transportation, free healthcare, youth and small business empowerment programs, enhanced security, and better road infrastructure, among others.

Mr. Ayo Subair, executive chairman of LIRS, stated,

“It is standard procedure to require a Tax Clearance Certificate (TCC) to access government services. To obtain a TCC, individuals must file their annual tax returns for the applicable assessment year and ensure their tax payments are currently based on their declared income.”

He highlighted that this requirement has been in practice for a long time and aligns with Section 85 of the Personal Income Tax Act (PITA) 2004 (as amended).

It is important to emphasize that every resident of the state, whether in formal employment or not, is required by law to file annual tax returns, declaring their income and paying any taxes due.

This requirement is backed by the Nigerian Constitution, it is also the law, as stipulated in the PITA and part of the social contract between the government and residents.

The Lagos State Government is dedicated to offering quality and efficient services to its residents. As part of this mission, it mandates that all taxable individuals register with the tax authority, submit their returns, and pay applicable taxes to maintain an updated Tax Clearance Certificate (TCC).

Mr. Subair explained that tax compliance is essential for the sustainability of public programs and services.

He noted that requiring a TCC for access to free services is not a new policy but a longstanding practice intended to foster fairness and transparency in using public resources. Tax revenues help fund various public programs that benefit millions of Lagos residents. For informal sector taxpayers, who might not have detailed financial records, the government has introduced a presumptive tax of ₦10,100 (comprising ₦10,000 in annual tax and a ₦100 development levy) to facilitate their inclusion in the tax net.

To enhance convenience and streamline the process, LIRS has deployed staff and agents to markets and schools, establishing one-stop centers where individuals can obtain their TCC without needing to visit tax offices.

Flexible payment options, including installment plans, are also available, though full payment must be completed before the TCC is issued.

He also added that the TCC of guardians will be accepted from students who do not reside with their biological parents.

“The aim is fairness, accountability, and sustainability,” emphasized Mr. Subair. “This policy is not about inflicting hardship, but rather ensuring that everyone, including those in the formal sector, contributes their fair share to sustain the provision of essential services.”

By meeting their civic responsibilities, residents play a role in the growth and development of Lagos State, reinforcing the government’s commitment to enhancing the quality of life for its citizens.

The company, founded in 2019, is now being investigated by the Lagos Inland Revenue Service (LIRS) and the Economic and Financial Crimes Commission (EFCC). 

Per TechCabal, the investigations have led to the departure of several clients in 2024, including Moniepoint, Paystack, and Kobo360.

The allegations against Bento include forging tax receipts, delaying pension contributions, and other financial discrepancies. Sources familiar with the matter revealed that former clients are particularly concerned about Bento’s management of their tax and pension remittances. 

Fuelmetrics, a digital inventory management company, has accused Bento of owing ₦50 million ($108,000) in unpaid taxes and pension contributions between 2023 and 2024. “LIRS made us understand that there is an ongoing investigation on Bento and that we are not the only company affected in this scam, dating from 2023 till date,” Fuelmetrics said in an internal memo.

In response to the allegations, Bento’s CEO, Ebun Okubanjo, admitted that the company had received complaints regarding unpaid taxes. He assured that the company is addressing the issue and plans to settle outstanding obligations. 

However, Okubanjo downplayed the extent of the problem, claiming it affected “a very small percentage of Bento users, who happen to be very vocal in the tech ecosystem.” 

Even with this, sources have shown doubts about the company’s ability to manage client funds effectively, pointing to delays in remitting payments, some lasting up to ten months.

An unnamed former employee of Bento Africa alleged that Okubanjo deliberately delayed pension and tax payments despite the availability of client funds. According to the ex-employee, internal documents show that the company’s processes led to payments being delayed for long periods. 

Okubanjo, however, attributed these delays to the manual nature of Bento’s payment system and insisted that payments are made promptly once discrepancies are identified.

Despite these assurances, Bento’s internal processes have been questioned by industry experts. An HR-SaaS expert remarked, “It is uncommon to hear of payment glitches that last a calendar year,” adding that such delays suggest deeper systemic issues. Bento’s past controversies also increase doubts. 

In 2023, Okubanjo was criticised for allegedly creating a toxic work environment, leading him to step aside from people-related decisions temporarily.

Bento Africa has tried to address some of these challenges by lobbying for a direct API integration with Nigeria’s tax and pension systems, which they claim would simplify payment reconciliation. However, Okubanjo admitted that these efforts had not yet succeeded, leaving many clients frustrated.

The company’s difficulties have been compounded by an inability to provide clients with the detailed records required for reconciliation. For example, when Kobo360 spoke about missing pension payment receipts, Bento reportedly obstructed an EFCC investigation by refusing to provide the necessary records. 

The investigation revealed a shortfall of over ₦20 million in pension funds during the five years the company worked with Bento.

Bento’s CEO, however, has remained defiant. He claimed that only a few clients request regular short-term records for reconciliation and that such requests are difficult and expensive to fulfil due to the manual processes involved. 

Okubanjo also claimed that Bento’s transition towards serving small and medium enterprises (SMEs) was a deliberate move to reduce reliance on venture-backed startups, which are more vulnerable to funding downturns.

Nonetheless, with the ongoing investigations and the loss of key clients, Bento claims that it remains profitable, processing between ₦4-5 billion ($2.6 million) in salaries monthly. However, insiders remain wary of the company’s future, given the issues about its ability to effectively manage tax and pension obligations.

This requirement is in line with the Personal Income Tax Act (PITA) Cap P8 LFN 2004 (as amended).

In an official statement, Dr. Ayodele Subair, the executive chairman of LIRS, emphasized that meeting this deadline is a legal obligation.

He warned that failure to comply will result in statutory sanctions, including penalties, as prescribed by law.

Section 81 of PITA mandates employers to submit comprehensive annual returns detailing all emoluments paid to employees, including taxes deducted and remitted to relevant tax authorities.

These returns must be filed no later than January 31 each year and cover the income and taxes paid during the preceding year (2024).

Dr. Subair stressed,

“Employers must prioritize the timely filing of their annual income tax returns to avoid penalties. Submitting returns on or before the deadline ensures compliance with the law and supports accurate revenue tracking, which is essential for Lagos State’s fiscal planning and sustainability.”

To simplify the process, LIRS has transitioned to a fully digital filing system. Employers must file their annual tax returns exclusively through the LIRS e-Tax portal.

Manual submissions are no longer accepted. Mr. Subair described the e-Tax platform as secure, user-friendly, and designed to provide employers with a convenient way to manage their tax obligations.

Employers are reminded to include the Payer ID of all employees in their returns. Employees without a Taxpayer ID are advised to generate one immediately on the e-Tax platform to prevent disruptions during the filing process.

To assist employers, LIRS has deployed staff across its offices to provide guidance on using the e-Tax portal and addressing related concerns.

Employers are encouraged to act promptly to meet the deadline and ensure compliance with tax laws.

Subair received the prestigious award at the Peak Performer (TPP) Fest held at the MUSON Centre, Onikan, Lagos.

The event, which brought together key stakeholders in the public and private sectors to celebrate excellence and innovation, highlights Subair’s unwavering commitment to excellence and innovation within the public sector, sterling transformative initiatives that significantly enhance service delivery.

His leadership has been pivotal in driving transformative policies and improving service delivery within the agency.

A standout moment of the festival was the LIRS emerging as a major highlight of the event, winning four awards for its exemplary performance in revenue collection and taxpayer engagement strategies.

The agency has continually demonstrated innovation in enhancing its operations, thereby contributing significantly to the state’s economic development.

The LIRS was recognised as the ‘most outstanding revenue collection agency of the year’, most outstanding performance as women-friendly revenue collection, as well as most outstanding performance in public engagement among others.

Accompanied by the LIRS directors, Ayodele Subair, who received the five awards on behalf of the agency, dedicated them to the state governor, Mr Babajide Sanwo-Olu and the tax-paying Lagosians, saying that the awards would encourage the LIRS to perform much better as it’s always a good feeling when you have recognition for all the hard work and efforts you put into your work.

Calling on the people to support the state more by paying their taxes when due, the LIRS boss noted,

“Because a lot of people don’t even connect the dot, people feel that when they go to the US or UK, they are very happy with what they see, good roads, light, security and so much support from the government but somebody has got to pay for it and the only way we can achieve such greatness is when all of us pay our parts.

“We have a lot of ideas and innovations that we apply because nobody wants to pay tax in any part of the world. Nigeria is not different from the other parts of the world. So, we spend a lot of time in advocacy because we realise that a lot of our citizens don’t avail themselves with all the various laws and procedures.”

He noted that payment of taxes is part of a social contract between the government and citizens as it helps the government to provide efficient infrastructure and qualitative social services.

“We have to show the people where the money goes to encourage them to pay their taxes as and when due. So, we have a lot of the projects that are going on. So, nobody who lives in Lagos would deny the fact that there are a lot of groundbreaking projects going on in Lagos, so many of them – the Blue Line, the Red Line, all the good roads, security.”

The Convener of The Peak Performer Festival, TPP Fest, Dr. Abiola Salami, said the award was instituted to appreciate individuals and organisations doing great things in Nigeria.

He noted that despite the challenges facing the country, “A number of things are going right in Nigeria, and on our continent, it is not all gloom and doom.

Salami submitted,

“So when things are going right, let us say it. Of course, when things need to be improved, we should say it as well, but not by pontificating or knocking down the people who are not doing things right but by providing solutions to help them because generally, if people know better, they do better.”

According to him, TPP Fest focuses on deepening insights to help individuals and organisations thrive and succeed.

Others honoured with the Legacy Awards included Dr. Biodun Shobanjo, Chairman of Troyka and Insight Communications; Sir. Ademola Aladekomo, Chairman of SmartCity Resorts; Adire textile designer, Mrs Nike Okundaye-Davies; Mr Foluso Philips, founder, Phillips Consulting; Dr John Momoh, chairman of Channels Television, and Dr Cosmas Maduka, CEO of Coscharis Group.

To facilitate growth, expansion, wealth creation, and job opportunities, the LSETF Loan Programme offers a competitive interest rate of 9% per annum.

The initiative, which is focused on supporting local entrepreneurship and economic development, targets business owners who are registered residents of Lagos State.

Established under the Lagos State Employment Trust Fund Law of 2016, the LSETF provides financial assistance to Lagos State residents, thereby addressing unemployment challenges and promoting job and wealth creation within the region.

Initially capitalized with N25 billion over four years by the Lagos State Government, the Fund seeks additional funding from various sources, including donor partners, development agencies, corporate organizations, and individuals, to further bolster its impact on the local economy.

The LSETF Loan Programme comprises various loan categories designed to meet the diverse needs of entrepreneurs across different sectors and stages of business development:

1. TACT Loan: For residents and businesses operating within the Lagos East Senatorial District, including Epe, Ibeju-Lekki, Ikorodu, Kosofe, and Somolu, the TACT Loan offers an exceptional opportunity to access funding at an incredibly low-interest rate of 6% per annum. The loan categories range from nano loans to small and medium enterprise loans, providing financial support ranging from N10,000 to N1,000,000.

2. LSETF Micro Enterprise Loan: With loan amounts ranging from N50,000 to N500,000 per person, this category is available to all business owners operating and residing in Lagos State. The loan tenure spans 12 months, and applicants are required to contribute equity equivalent to 5% of the loan size.

3. LSETF Micro Enterprise Startup Loan: Aimed at empowering micro-enterprise startups in Lagos State, this loan category offers amounts ranging from N50,000 to N250,000 per person. Similar to the Micro Enterprise Loan, the tenure is 12 months, with an equity contribution of 5% of the loan size.

4. LSETF Small and Medium Size Enterprise Loan: Geared towards small and medium-sized business owners operating and residing in Lagos State, this loan category offers funding ranging from N500,000 to N5,000,000 per business. With a loan tenure of 24 to 36 months, applicants are required to contribute equity equivalent to 5% of the loan size.

How to Apply to LSETF Loan programme

The application process for the LSETF Loan Programme is designed to be straightforward and accessible to all eligible entrepreneurs.

Applicants are required to provide essential documentation, including but not limited to LASRRA ID, Tax ID (LIRS), valid government-issued identity card, Bank Verification Number (BVN), and relevant business documents.

The program encourages businesses to have been operational for at least one year, ensuring a commitment to sustainability and growth.

Mr. Ayodele Subair, the executive chairman of LIRS, conveyed this in an official statement released by the agency.

Subair emphasized that employers of labour with businesses located within Lagos State must adhere to the deadline, as failure to comply will result in penalties and other statutory sanctions outlined in section 81(3) of the Personal Income Tax (Amendment) Act 2011.

Mr. Subair reiterated that the exclusive platform for filing annual income tax returns in Lagos State is the LIRS e-Tax portal, as manual filing is no longer permissible. He urged businesses and employers to leverage the e-Tax portal for filing, citing its user-friendly, convenient, and secure nature.

“The e-Tax portal is designed for the convenience of taxpayers, making tax transactions easily accessible from the comfort of homes and offices,” noted Subair.

He emphasized that the Taxpayer ID is a mandatory requirement for all employers to file their annual income tax returns on the e-Tax portal.

Employers within the State are advised to generate a taxpayer ID (where applicable) for their employees and to file their P.A.Y.E returns through the e-Tax portal.

To facilitate compliance and address any filing-related concerns, LIRS has designated staff at its various offices to assist taxpayers in utilizing the e-Tax portal. For additional information or inquiries, taxpayers are encouraged to visit the agency’s website, follow LIRS on social media platforms: @lirsgovng, reach out via email at etaxinfo@lirs.net, or contact the LIRS customer care: 0700CALL LIRS (0700-2255-5477).

The State on June 22, 2009, enacted the Hotel Occupancy and Restaurant Consumption Law of Lagos State otherwise called Hotel Consumption Law, which imposes consumption tax at 5% on the value of goods and services consumed in hotels, restaurants and event centers within the state.

The tax base is the total cost of facilities, consumables or personal services supplied to a consumer in, by or on behalf of the hotel, restaurant or events centre.

Speaking on The Tax Talk programme monitored on TVC recently, Jimi Aina, Director, New Growth, LIRS, said while the consumption tax is a major source of revenue for the Lagos State Government, which uses the funds to provide public amenities and services such as healthcare, education, transportation, and security, owners of restaurants, hotels, event centres, etc., are obligated to register with the LIRS as collecting agents.

Aina submitted that contrary to the misconception a lot of people have about consumption tax, the state has not imposed additional taxes on restaurants, hotels and event centres, rather, consumers who purchase taxable goods or services in the state are responsible for paying the consumption tax.

The tax is already included in the price of the goods or services and is paid to the collecting agent who collects it on behalf of the Lagos State Government.

“Many people misunderstand the concept of consumption tax. It is often thought that this tax is an additional burden on hotels and restaurants, but this is not the case. In reality, it is the customers who are taxed when they dine out, attend events, or have drinks at a bar. The tax rate is five per cent. By paying the consumption tax, consumers contribute to the development and maintenance of these amenities and services.”

“According to Section 1 of the Lagos State Consumption Tax Law, consumption tax is defined as a tax on the supply of goods and services in Lagos State, which is charged and payable by the consumer.

“Consumers who purchase taxable goods or services in Lagos State are responsible for paying consumption tax. The tax is included in the price of the goods or services and is paid to the collecting agent who collects it on behalf of the Lagos State Government,” he said.

Speaking further, the New Growth Director said while collecting agents (restaurants, hotels and event centres) have the responsibility of collecting these taxes from consumers and remitting to the LIRS, it’s also important to factor in the deadline for remittances.

He explained; “According to the Lagos state consumption tax law, the remittances must be made not later than the 20th day of the month following the month of collection. For example, consumption tax collected in September must be remitted to the LIRS on or before the 20th of October.

Aina noted that there are legal implications to non-remittances by collecting agents who failed to remit consumption tax collected from consumers to the LIRS within the prescribed time.

“Where a Collecting Agent fails to make a return or remittances as and when due, LIRS may make an estimate of the total amount due and such estimate shall become due not later than 21 days of service of such a notice.

“Failure to remit the tax collected within the stipulated time will attract a 10% penalty of an amount not remitted plus interest at 5% above the prevailing Monetary Policy Rate of CBN of Nigeria. Such collecting agent may also face sanctions including closure of business and prosecution,” he submitted.

According to the LIRS, the monthly filing of returns on sales using UCL 2 form must be accompanied by a report stating:

• The total amount of payments made for all chargeable transactions during the preceding reporting period.
• The amount of consumption tax collected by the agent during the reporting period.
• Any other information required by LIRS to be included in the report.

Every collecting agent is required to keep, maintain and preserve such records, books and accounts in respect of all transactions chargeable under the Law as hotels, restaurants and other businesses affected by this Law are required to register with LIRS and keep records of Evidence of registration as a Collecting Agent.

The President of the anti-corruption crusade group, Paulycap Nnabuogor, said in a press statement, that the initiative which subjects the operations of LIRS to public scrutiny, will promote openness, accountability and ultimately enhance citizens’ participation in governance, boosting their trust in the activities of a sensitive agency of government.

Nnabuogor said the anti-corruption group is convinced that the initiative is targeted at strengthening and re-invigorating frontiers in the fight against fraud and corruption and puts both the management and the staff of the agency on their toes to deliver their statutory roles in compliance with the global best practices.

He said, “We are not particularly surprised that the Lagos State government chose the LIRS as a pilot scheme for its Speak Up programme because of the reforms the Subair-led management of the revenue agency had carried out internally to boost its operations and enhance the capacity of its workforce. Undoubtedly, this initiative shows that the activities of civil society organisations like ours are beginning to bear fruit and Nigeria is the ultimate winner.

“Before the birth of the Whistle-Blower Initiative, we were aware of the efforts of the LIRS management to promote accountability within the system and the importance Subair particularly attached to the welfare of his staff. Our findings show that the LIRS maintained the payment of performance allowances to the staff, and doesn’t joke with the prompt release of other pay including wardrobe allowances, particularly to the staff at both the legal and relationships units all geared towards enhancement of performance.

“More so, we found out that the decision to introduce a computer-based test for promotion, which is handled by independent assessors, has encouraged high-fliers within the system to grow rapidly and underlined why the agency has maintained its status as the best-performing tax collecting board in the country. Subair’s Award of Recognition by the Joint Tax Board of Nigeria is a testimony of his achievements as the agency has always met its revenue target even during the COVID-19 pandemic.”

Meanwhile, Subair restated the commitment of the LIRS management to the welfare of its staff, strengthened by the belief that a motivated workforce will lead to greater productivity.

He said.” We take our workforce’s welfare and career development as a key metric in our journey to consistently deliver our statutory role as a revenue agency.  In 2019, we approved a 70% salary increase for staff from Assistant Revenue Manager and below, and a 50% increase for Revenue Manager and above. This is the most significant salary review in the Agency to date. A total of 3,608 members of staff were promoted between 2017 to 2021 and all our staff do not pay for standard medical services.

“We also ensure that performance bonuses are paid to all staff, based on clearly defined and documented processes while Union dues are remitted timely and correctly with all other statutory deductions such as pensions.”

He added that the consequential adjustment of salaries has been agreed upon in principle and payment modalities are currently being worked out by management, stressing that all are geared toward ensuring that the agency serves the people of Lagos State effectively.