Former Lagos State Governor, Akinwunmi Ambode, has identified poor investment in technology as the primary reason for the low Internally Generated Revenue (IGR) recorded by many states across Nigeria. He made this revelation during the annual dinner and awards ceremony of the Chartered Institute of Taxation of Nigeria (CITN), held over the weekend.
The Critical Role of Technology in Revenue Generation
Drawing from his firsthand experience as both the Accountant General and Governor of Lagos State, Ambode provided a detailed account of how the state achieved a remarkable improvement in its IGR. He stated that Lagos accomplished this feat by heavily investing in technology and data systems, which are now critical components for the success of the new tax laws.
Ambode, who chaired the event, emphasized that the use of technology to gather accurate data is non-negotiable for any state serious about boosting its internal revenue. He pointed out that when citizens see clear results from tax payments, such as improved public services and infrastructure, the challenge of expanding the tax net is significantly reduced.
Call for Federal Government and CITN Collaboration
For the new tax reform to yield better outcomes, Ambode urged the Federal Government to ensure it has the adequate human resources to manage collections, prospects, and public enlightenment. He specifically advised the government to actively engage the CITN to act as public relations advocates.
This partnership, he believes, is essential to take the new reform to the next level of public acceptance and engagement. "My interest is in the increased collection that will catalyse development in my community," Ambode said. "The tax reform should result in more money for the states and local councils, which will in turn drive genuine changes and development in these places."
Other Voices on the New Tax Reform
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, also spoke at the event. He confirmed that the new tax laws are designed to create an efficient and equitable system. A key feature will be progressive taxation, ensuring people pay according to their financial abilities, thereby protecting the poor.
Furthermore, the President and Chairman of the CITN Governing Council, Innocent Ohagwa, announced that the new tax reform Acts are set for full implementation starting January 1, 2026. He declared that the Institute's task is far from over, stating, "It is just the beginning." He called on tax professionals to leverage their expertise to drive the reform from paper to practice through continuous advocacy and support.
