… recorded a 29 per cent increase in overall tax revenue collections in the first half of 2026.
Lagos State recorded a 92 per cent increase in individual statutory annual tax filings between 2025 and 2026, while corporate filings rose by 11 per cent, the Lagos State Internal Revenue Service has said.
The LIRS disclosed this on Thursday at the third edition of the Lagos Chamber of Commerce and Industry’s Organised Private Sector stakeholders’ forum on emerging tax matters held in Lagos.
The forum, themed “New Tax Regime: Compliance Level and Emerging Tax Administration in Lagos State,” examined taxpayer compliance six months after the implementation of Nigeria’s new tax regime.
Representing the Executive Chairman of LIRS, Dr Ayodele Subair, the Director of Tax Audit, Folusho Mustapha, said the reforms had begun to change taxpayer behaviour and tax administration in the state.
“Statutory annual filings between 2025 and 2026 recorded an 11 per cent growth in corporate filings and a significant 92 per cent growth in individual filings,” Mustapha said.
He added that Lagos recorded a 29 per cent increase in overall tax revenue collections in the first half of 2026 compared with the corresponding period in 2025. PAYE collections rose by 36 per cent, while other revenue lines increased by 15 per cent.
Mustapha said the emerging impact of the reforms also showed that many taxpayers would either stop paying tax or pay less under the new regime. He said 54 per cent of taxpayers who paid taxes in the 2025 year of assessment had not and would not pay in 2026, while 44 per cent were expected to pay less than they did in 2025.
He said only about two per cent of the sampled taxpayers had commenced payment and were expected to pay more than their 2025 liabilities.
The Lagos tax chief explained that the figures highlighted the need for sustained taxpayer education, targeted compliance interventions and greater awareness of tax obligations and the consequences of non-compliance.
Meanwhile, LCCI President, Leye Kupoluyi, said businesses wanted a tax system that was fair, predictable, efficient and capable of supporting economic growth.
Kupoluyi said the government had a legitimate objective to increase revenue mobilisation but warned against achieving the target by repeatedly increasing the burden on existing taxpayers.
“If we repeatedly increase the burden on the same formal businesses that already pay their taxes, we risk weakening their capacity to invest, employ workers, expand production, and compete internationally. The more sustainable strategy is to expand the tax base, improve compliance, and reduce leakages,” he said.
He said the success of the new tax regime should be assessed by whether compliance had become easier, the cost of compliance had fallen, the tax base had expanded and investment confidence had improved. Not merely by the amount of revenue collected.
The new tax regime commenced on 1 January, 2026, following the introduction of four tax laws covering taxation, administration, the Nigeria Revenue Service and the Joint Revenue Board.
Kupoluyi said businesses needed greater certainty as they adjusted to the new framework, adding that frequent changes in tax rules, delayed regulations and differing interpretations could affect investment decisions.
He said, “Our message to the government is therefore simple: Broaden the base. Improve compliance. Reduce leakages. Use technology intelligently. Strengthen enforcement against evasion. Simplify compliance. And protect the productive capacity of businesses that are already compliant.”
Mustapha said LIRS would continue to strengthen digital platforms, use data to identify compliance risks and improve taxpayer services.
He said the agency would focus on simplification, engagement and collaboration with the private sector as the new tax regime evolved.
“The ultimate success of the new tax regime will not be determined by legislation alone. It will be measured by how easy it is to comply, how fairly the system is administered, how effectively legitimate concerns are resolved and how much confidence taxpayers place in the system,” he said.
