Sanwo-Olu Refutes Claims That Lagos Will Benefit Most from Tax Reforms
Governor Babajide Sanwo-Olu of Lagos State has dismissed claims that Lagos will benefit the most from the proposed tax reforms in Nigeria.
Speaking during the Africa Investment Forum Market Days 2024 in Morocco, Sanwo-Olu encouraged Nigerians to carefully review the provisions of the reforms and refuted the idea that Lagos would be the primary beneficiary, especially in response to comments made by Borno State Governor Babagana Zulum, who had suggested that the new VAT sharing model would favor Lagos and Rivers States. Sanwo-Olu explained that the reforms would require collective effort and hard work from all states to realize their full benefits.
Sanwo-Olu stressed that while the reforms may lead to some losses for Lagos in certain areas, they will also open up greater opportunities for the state to play a more significant role in national governance. He highlighted that changes often come with challenges, but they are necessary for progress. Sanwo-Olu further pointed out that Nigeria’s low tax-to-GDP ratio, one of the lowest globally, underscores the urgent need for these reforms. He assured Nigerians that the reforms were designed to create a more equitable and efficient system, not to favor specific regions.
The Lagos governor expressed optimism about the potential of the reforms to unlock significant opportunities for both states and non-governmental actors. He emphasized that the intention behind the tax reform was to foster a fair and inclusive system that would benefit the entire nation. Sanwo-Olu called for a positive and proactive approach to the reforms, urging Nigerians to support the changes rather than resist them. He reiterated that the reforms are meant to improve the economy for all, not just for a select group of people or regions.
Sanwo-Olu also mentioned that he has been engaging with stakeholders to clear up any misconceptions surrounding the reforms. He has urged the presidential tax reform committee, led by Taiwo Oyedele, to enhance public engagement efforts to explain the details of the reforms more thoroughly. Despite some resistance to the reforms, particularly from the Northern States Governors Forum, who have expressed concerns about the impact on their region, Sanwo-Olu remains confident that the reforms will ultimately lead to a stronger and more sustainable governance and tax system for the country.
