Lagos State Governor, Babajide Sanwo-Olu, has dismissed assertions that Lagos would disproportionately benefit from Nigeria’s proposed tax reforms. Speaking at the Africa Investment Forum Market Days 2024 in Morocco, Sanwo-Olu urged Nigerians to thoroughly understand the reforms and their intent.
The governor countered comments made by Borno State Governor, Babagana Zulum, who earlier suggested the VAT sharing model would primarily favor Lagos and Rivers states. Sanwo-Olu emphasized that the reforms aim to create a balanced and equitable system for all regions.
“You cannot make changes without breaking some eggs,” he said, underscoring the collective effort required to implement the changes. He acknowledged that while Lagos may incur some losses in specific areas, the reforms would also open greater opportunities for development.
Sanwo-Olu highlighted Nigeria’s low tax-to-GDP ratio, one of the lowest globally, as a critical issue the reforms intend to address. “This reform is not designed to harm anyone but to create a fair and inclusive system that benefits everyone,” he explained.
He urged Nigerians to view the reforms as a collective opportunity for growth, stressing that public engagement is essential to dispel misconceptions. He also called on the Presidential Tax Reform Committee, led by Taiwo Oyedele, to intensify awareness campaigns.
The tax reform proposals, introduced in October by President Bola Tinubu, have faced opposition from the Northern States Governors Forum, who fear the changes may disadvantage their region. However, Sanwo-Olu remains optimistic, describing the reforms as a necessary step toward equitable economic progress.
The forum, attended by state leaders to attract global investors, served as a platform for Sanwo-Olu to advocate for the reforms, encouraging Nigerians to embrace the broader benefits they offer for national development.
