Sanwo-Olu Addresses Concerns Over Lagos’ Gains From Tinubu’s Tax Reform Bills

Sanwo-Olu Addresses Concerns Over Lagos’ Gains From Tinubu’s Tax Reform Bills

Lagos State Governor Babajide Sanwo-Olu has refuted claims that the state stands to benefit the most from the proposed tax reforms, emphasizing the need for Nigerians to fully understand the reforms before forming judgments…READ MORE…

During an interview with the News Agency of Nigeria (NAN) at the Africa Investment Forum Market Days 2024 in Morocco, Sanwo-Olu responded to comments made by Borno State Governor Babagana Zulum, who suggested on December 2 that the proposed value-added tax (VAT) distribution model would disproportionately favor Lagos and Rivers states.

Sanwo-Olu countered Zulum’s assertion, underscoring that the reforms are designed to create a more efficient tax system intended to benefit all states by addressing key issues in revenue generation and distribution.

He stated, “Those who are uncomfortable with the tax reform must recognize that you cannot create change without breaking some eggs. Significant changes require adjustments. I encourage people to thoroughly read and understand the reform’s provisions.

“There are many comments suggesting that Lagos will be the primary beneficiary, but that is not true. While Lagos may see some limitations in certain areas, overall, we believe this is a global initiative aimed at enhancing our governance structures.”

Sanwo-Olu continued, noting that while Lagos may encounter some losses, it will gain the opportunity to play a more significant role in the broader context of the reform. He highlighted the critical need for reform by pointing out Nigeria’s low tax-to-GDP ratio, one of the lowest in the world.

The governor expressed hope that the proposed reforms would unlock substantial opportunities for all states and non-governmental entities, assuring Nigerians that the intent of the reforms is not to disadvantage anyone but rather to create a fair and inclusive system that benefits everyone.

“I view this as a promising reform. Given Nigeria’s low tax-to-GDP ratio, several changes are necessary. We need to embrace these opportunities and reassure ourselves that the intention is not to harm anyone; rather, it aims to improve our conditions collectively.”

Sanwo-Olu, who participated in the forum alongside other governors to attract investment, revealed that he has been actively engaging stakeholders to address misconceptions about the reforms. He urged the presidential tax reform committee, led by Taiwo Oyedele, to enhance its public outreach efforts.

He acknowledged that some resistance to the reforms arises from misunderstandings but noted that increased public engagement is a positive step forward.

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