How Digital Transformation Propelled LIRS Performance – Echonews Analysis
The partnership between Echonews and the Lagos State Internal Revenue Service (LIRS) has contributed to the growing visibility and performance of the revenue agency in recent years.
As a digital and online newspaper, Echonews has consistently reported the activities, reforms and innovations of LIRS, including the publication of its official advertisements.
This sustained media engagement has helped project the agency’s initiatives to a wider audience and strengthened public awareness on tax compliance.
Beyond publicity, the partnership has also supported LIRS’ efforts to reach more taxpayers and stakeholders across the state. Increased awareness of tax policies and initiatives has played a role in expanding the tax net and reinforcing the collaborative relationship between the two organisations.
The Lagos State Internal Revenue Service remained a key pillar of fiscal sustainability for the Lagos State Government in 2025, strengthening revenue mobilisation and expanding tax compliance in Nigeria’s commercial hub.
Following its historic achievement of surpassing ₦1 trillion in revenue collection in 2024, the state government set an ambitious Internally Generated Revenue (IGR) target of ₦1.4 trillion for 2025. The target reflects Lagos’ increasing reliance on internally generated revenue to finance infrastructure development, social services and broader economic growth.
Within the first quarter of 2025, Lagos recorded ₦333.2 billion in internally generated revenue, indicating a strong fiscal start to the year. Out of this figure, ₦242.6 billion was generated from Pay-As-You-Earn (PAYE) tax, underscoring the importance of payroll taxation within the state’s revenue structure.
To sustain this performance, LIRS continued to modernise its operations through digital innovations aimed at improving efficiency, transparency and taxpayer convenience. The agency upgraded its e-Tax platform and mobile application, integrating additional services such as:
1. Capital Gains Tax filing
2. Stamp duties processing
3. Integration with the Corporate Affairs Commission (CAC)
4. Geo-tagging and advanced data analytics tools
5. Expatriate tracking through integration with the Nigeria Immigration Service
These technological upgrades were designed to strengthen tax enforcement, improve compliance monitoring and expand the tax net, particularly by tracking high-net-worth individuals and businesses operating within Lagos.
LIRS also intensified compliance efforts through strategic inter-agency collaboration with several federal and state institutions, including the Corporate Affairs Commission, the Federal Inland Revenue Service, the Nigeria Immigration Service and the Nigerian Financial Intelligence Unit.
These partnerships enhanced data sharing and enabled authorities to identify previously untaxed individuals and businesses, particularly within Lagos’ vast informal and outsourcing sectors.
In addition, the revenue agency reinforced statutory tax compliance by issuing reminders to employers and individuals on the submission of annual tax returns. Employers are required to file annual returns detailing employees’ income and taxes deducted, while individual taxpayers, including business owners and professionals must submit income declarations in accordance with Nigeria’s tax administration laws. Failure to comply attracts statutory penalties.
Under the leadership of its Executive Chairman, Ayodele Subair, LIRS also received recognition in 2025 for its performance and innovation in public sector revenue administration.
Observers note that the agency’s leadership reforms, digital transformation and improved compliance framework have strengthened its reputation as one of Nigeria’s most effective subnational revenue authorities.
With a rapidly expanding population and economy, Lagos continues to depend heavily on internally generated revenue to fund its annual budget.
Analysts say sustained improvements in tax administration, digitalisation and compliance enforcement will remain critical for the state to achieve its ambitious revenue targets and reduce dependence on borrowing.
