Being the Speech by His Excellency Seyi Makinde, Executive Governor of Oyo State at the 157th Joint Tax Board Meeting, with the theme, “Taxation of the Informal Sector; Potentials and Challenges,” on Monday, 26 May 2025 at the Jagz Hotel, Iyaganku, Ibadan
It is my pleasure to welcome you all to Oyo State for the 157th Joint Tax Board Meeting. This gathering is not only timely but also aligned with the real work we are currently doing in Oyo State and across Nigeria to improve tax systems, especially as it relates to the informal sector.
In Oyo State, we are not just talking about expanding the tax net, we are actively doing so. We recognise that the informal sector, made up of traders, artisans, commercial drivers, and small businesses, forms the backbone of our local economy. Historically under-taxed, this segment has now become a focus of strategic action.
We have taken concrete steps to bring more people into the tax net without burdening them unnecessarily. Our initiatives include:
- Mass tax education: Through consistent enlightenment programmes, we are helping informal sector operators understand that taxation is not a punishment, but a pathway to better roads, schools, and services.
- Simplified processes: By introducing digital payment channels and working closely with trade associations, we have reduced the stress and time it takes for small business owners to comply.
- Incentive-linked compliance: We are tying voluntary tax compliance to benefits such as access to empowerment schemes and credit facilities.
These measures have already led to tangible results. One of the most significant outcomes is an increase in our Internally Generated Revenue (IGR), which has risen by 295% in the past six years. This rise reflects both increased compliance and growing trust in our governance systems.
However, we know there is still more to be done. That is why I am especially hopeful about the outcome of this meeting. I look forward to hearing about:
- Further proven methods of capturing revenue from highly mobile and hard-to-track informal businesses.
- More ways to deepen partnerships with stakeholders like transport unions and market associations
- Innovations in using data and technology to track and support informal businesses without excessive bureaucracy
This forum is an opportunity to exchange ideas on how to move from intent to impact across states and sectors.
In Oyo State, we are committed to continuous improvement. We are also strengthening the capacity of the Oyo State Internal Revenue Service to manage compliance more effectively, with empathy and fairness. The future of taxation—especially of the informal sector—depends on how well we balance enforcement with understanding.
Let us use this meeting not just to talk, but to chart a course of action—grounded in the realities we face and the opportunities we must seize.
Thank you once again for choosing Oyo State to host the 157th Joint Tax Board Meeting. We are honoured to host you, and we look forward to the practical outcomes that will follow.
Thank you and God bless you.
Seyi Makinde
26 May 2025
