Lagos Sees 92% Jump in Tax Filings After Reform

Nigerians are filing their taxes in record numbers, and the reason isn't more enforcement but smarter policy design.

Lagos State recorded a 92% surge in individual tax filings between 2025 and 2026, just six months after Nigeria launched its new tax regime. Corporate filings also climbed 11%, signaling a dramatic shift in how citizens engage with the tax system.

The Lagos State Internal Revenue Service shared the milestone at a business stakeholders forum on Thursday. Revenue collections rose 29% in the first half of 2026 compared to last year, with individual income tax collections up 36%.

What makes these numbers remarkable is that many taxpayers are actually paying less or nothing at all under the new system. About 54% of previous taxpayers no longer owe taxes in 2026, while 44% will pay reduced amounts. Only 2% face higher bills than before.

The reforms prioritize expanding the tax base over squeezing existing payers. Dr. Ayodele Subair's team designed the system to catch more people in the formal economy while easing burdens on compliant businesses.

The Ripple Effect

Business leaders are noticing the difference. Leye Kupoluyi, president of the Lagos Chamber of Commerce and Industry, praised the approach but urged continued focus on broadening the base rather than repeatedly taxing the same formal businesses.

"The more sustainable strategy is to expand the tax base, improve compliance, and reduce leakages," Kupoluyi told forum attendees. He emphasized that success should be measured by whether compliance became easier, not just by revenue totals.

The government introduced four new tax laws in January 2026, covering taxation, administration, and revenue service operations. Digital platforms now help identify compliance gaps while simplifying filing processes.

LIRS officials say they'll keep strengthening digital tools and collaborating with businesses as the system evolves. The agency recognizes that taxpayer confidence matters as much as collection rates.

Early results suggest Nigeria may have cracked a puzzle that frustrates many developing economies: how to grow tax revenue without crushing business growth or driving people underground. The 92% jump in individual filings shows what happens when reform actually reduces friction instead of adding it.