Governor Babajide Sanwo-Olu of Lagos State has debunked assertions that Lagos will disproportionately benefit from the proposed tax reform bills.
Speaking on the sidelines of the Africa Investment Forum Market Days 2024 in Morocco, Sanwo-Olu urged Nigerians to carefully study the provisions of the reforms before drawing conclusions.
His remarks come in response to comments by Borno State Governor Babagana Zulum, who recently claimed on Channels Television and in an interview with BBC Hausa that the proposed Value-Added Tax (VAT) sharing model in the tax reform bills would primarily favor Lagos, potentially to the detriment of Northern Nigeria and other regions.
Sanwo-Olu dismissed such claims, emphasizing that the reforms are designed to strengthen governance and create a more balanced system nationwide.
“It’s incorrect to say Lagos will be the major beneficiary,” he said. “In fact, Lagos may experience some losses in certain areas. However, the overall goal is a globally competitive governance structure that benefits everyone. To fully realize the reforms’ advantages, all stakeholders will need to work harder.”
The governor explained that Nigeria’s current tax-to-GDP ratio is among the lowest in the world, making reform essential to unlocking economic opportunities.
“Reforms often require difficult decisions,” Sanwo-Olu said. “As I’ve said, you cannot make an omelette without breaking eggs. These changes are not about favoring Lagos or any specific region but about fostering a fairer, more inclusive system for all.”
He expressed optimism about the reforms’ potential to improve governance and economic growth across Nigeria while dispelling fears of regional bias.
“I have a positive outlook on these reforms,” he said. “They are intended to uplift everyone, not harm anyone. Public engagement is crucial to dispel misconceptions, and I’ve encouraged the tax reform committee to intensify efforts in this regard.”
The tax reform bills—comprising the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and Joint Revenue Board Establishment Bill—were submitted to the National Assembly by President Bola Tinubu on October 3.
Sanwo-Olu called on Nigerians to approach the reforms with an open mind, emphasizing the need for collaboration and understanding to ensure their successful implementation.
