Makinde seeks affordable tax policy for informal sector
Oyo State Governor, Seyi Makinde
Makinde seeks affordable tax policy for informal sector
Oyo State Governor, Seyi Makinde, on Monday, emphasised the need for a ‘humane and inclusive approach’ to taxing the informal sector.
Makinde made the remarks while inaugurating the 157th meeting of the Joint Tax Board (JTB), themed “Taxation of the Informal Sector: Potentials and Challenges,” held at the JAGZ Hotel in Ibadan, the state capital.
The governor called for empathy and strategic support in efforts to broaden Nigeria’s tax base, stressing that the government must be both strategic and compassionate in its approach.
He reiterated his administration’s commitment to balancing fiscal responsibility with inclusive economic growth, highlighting recent initiatives that have strengthened the state’s revenue generation.
While delivering his welcome address, Zacch Adedeji, Chairman of the Federal Inland Revenue Service and JTB Chairman, acknowledged Oyo State’s pioneering role in national development and tax administration.
He noted that the informal sector accounts for 92.6 per cent of Nigeria’s employed population, according to the National Bureau of Statistics, underscoring its vital role in the economy.
“The JTB, currently transitioning to the Joint Revenue Board with expanded scope and responsibilities, will continue to harmonise and modernise tax systems nationwide.
“This meeting provides a crucial platform to explore innovative and equitable ways to integrate the informal sector into the tax net without alienating or overburdening it.”
Adedeji praised the Makinde administration’s achievements in urban renewal, housing, and road infrastructure.
“While significant progress has been made in education, healthcare, transportation, housing, trade, and investment, it is commendable that this government prioritises socioeconomic growth at the grassroots level.
“We also acknowledge the positive impact on the state’s Internally Generated Revenue (IGR), with Oyo ranking among the top ten states, achieving a 2024 IGR of N65.28 billion—a 23.78% increase over 2023.”
He stressed that President Bola Tinubu’s administration is concerned about the welfare of informal sector operators, clarifying that efforts to include them in the tax net aim to organise the sector for effective economic planning rather than to impose undue taxation.
Before that, Adebowale Awakan, Executive Chairman of Oyo State Internal Revenue Service, reported that the state’s IGR has grown from N1.6 billion per month in 2019 to approximately N8.5 billion per month in Q1 2025—a 240% increase compared to the same quarter in 2021.
“We must reach the unreached and tax the sector once considered negligible. However, we must do so without provoking resistance or being perceived as anti-masses,” he added.
Olusegun Adesokan, Executive Secretary of the JTB, assured that stakeholders would thoroughly deliberate and develop robust resolutions to enhance the nation’s economy.
