Lagos State Governor, Babajide Sanwo-Olu has dismissed allegations that Lagos will be the primary beneficiary of Nigeria’s proposed tax reform bills.
Addressing concerns during the Africa Investment Forum Market Days 2024 in Morocco, Sanwo-Olu emphasized that the reforms aim to foster a fair and inclusive tax system for all states.
Responding to comments from Borno State Governor Babagana Zulum, who warned that the proposed Value-Added Tax (VAT) sharing model would disproportionately favour Lagos, Governor Sanwo-Olu clarified that the reforms would require collective effort and would not unduly benefit any one state.
“It’s untrue that Lagos will be the biggest beneficiary. In fact, Lagos may face some adjustments in certain areas. However, on a broader scale, the reforms present opportunities for better governance and a stronger economy for all states,” Sanwo-Olu stated.
He also stressed the urgent need for reform, citing Nigeria’s low tax-to-GDP ratio as one of the weakest globally. He reassured Nigerians that the reforms are designed to create a fairer system, not to disadvantage anyone.
The Governor further revealed ongoing stakeholder engagements, including discussions with the Presidential Tax Reform Committee, chaired by Taiwo Oyedele, to address public misconceptions about the bills.
The proposed tax reforms, introduced by President Bola Tinubu on October 3, include four key bills: the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill. These bills aim to reshape the country’s tax structure and boost revenue generation across all regions.
