Individual statutory tax filings in Lagos State surged by 92 per cent between 2025 and 2026, while corporate filings increased by 11 per cent, according to the Lagos State Internal Revenue Service.
The figures were disclosed 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,” assessed the level of taxpayer compliance six months after the implementation of Nigeria’s new tax framework.
Representing the Executive Chairman of LIRS, Ayodele Subair, the Director of Tax Audit, Folusho Mustapha, said the early data indicated that the reforms were already influencing taxpayer behaviour and the way tax administration was being conducted 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 also disclosed that Lagos generated 29 per cent more tax revenue in the first six months of 2026 than it did during the corresponding period in 2025.
According to him, Pay-As-You-Earn collections recorded a 36 per cent increase, while other revenue streams grew by 15 per cent.
However, Mustapha said the increase in filing activity had not necessarily translated into higher tax liabilities for all taxpayers under the new regime.
He said the agency’s assessment showed that 54 per cent of taxpayers who paid tax for the 2025 year of assessment had not paid and were not expected to pay in 2026.
Another 44 per cent, he said, were projected to pay less tax than they did in 2025.
Only about two per cent of the sampled taxpayers had started paying tax and were expected to record higher liabilities than their 2025 assessments.
Mustapha said the figures demonstrated the importance of continued taxpayer education, targeted compliance measures and greater awareness of tax responsibilities under the new system.
He noted that effective implementation would require taxpayers to understand their obligations, while the revenue authority would need to strengthen its efforts to identify and address areas of non-compliance.
The development also generated discussions around the effect of the new tax framework on businesses and the wider economy.
The President of the Lagos Chamber of Commerce and Industry, Leye Kupoluyi, said the private sector supported efforts to improve government revenue but stressed that the tax system must remain fair, predictable and efficient.
He warned that placing a heavier burden on businesses that already comply with their tax obligations could undermine their ability to invest, create jobs and expand their operations.
“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.
Kupoluyi argued that the performance of the new tax regime should not be judged solely by the amount of revenue generated.
He said the more important measures should include whether taxpayers found compliance easier, whether the cost of meeting tax obligations had declined, whether the tax base had expanded and whether investor confidence had improved.
The new tax regime came into effect on January 1, 2026, following the introduction of four tax laws covering taxation, tax administration, the Nigeria Revenue Service and the Joint Revenue Board.
Kupoluyi said businesses required greater certainty as they adjusted to the new framework, warning that frequent changes to tax rules, delays in regulations and conflicting interpretations could influence 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.”
On its part, LIRS said it would continue to improve its digital platforms, deploy data to identify compliance risks and strengthen services available to taxpayers.
Mustapha said the agency would place greater emphasis on simplifying tax processes, engaging taxpayers and working with the private sector as the new regime develops.
“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.
