Lagos Governor Babajide Sanwo-Olu refutes claims that Lagos will benefit the most from proposed tax reforms. He stresses the need for a collective effort to ensure the reforms unlock opportunities for all states, addressing misconceptions and emphasizing the urgency to improve Nigeria's low tax-to-GDP ratio.
Lagos State Governor, Babajide Sanwo-Olu, has denied claims that Lagos will be the primary beneficiary of the proposed tax reforms. Speaking during the Africa Investment Forum Market Days in Morocco on December 5, 2024, Sanwo-Olu addressed rumors circulating about the tax reform bills. He countered statements made by Borno State Governor Babagana Zulum, who claimed that the new value-added tax (VAT) sharing model would only benefit Lagos and Rivers states.
Sanwo-Olu urged Nigerians to thoroughly review the provisions of the reforms, explaining that the changes will require a collective effort from all states to realize their full benefits. While acknowledging that Lagos may face some losses in certain areas, he emphasized that the reforms are designed to bring about a more equitable system that benefits everyone. He stressed that the low tax-to-GDP ratio in Nigeria, one of the lowest globally, calls for urgent reform to improve governance and unlock new opportunities for all states.
Sanwo-Olu expressed optimism that the tax reforms would drive positive change, urging Nigerians not to view the changes as detrimental but as a step toward improving the country’s financial system. The governor also revealed his efforts to engage with stakeholders, clarifying misconceptions and promoting the importance of public engagement to ensure the reforms are well understood and widely accepted.
The tax reform bills were introduced by President Bola Tinubu, with support from several governors, despite resistance from the Northern States Governors Forum.
