Sanwo-Olu refutes claims Lagos will benefit most from tax reform bills

Sanwo-Olu’s remarks counter statements made by Borno State Governor Babagana Zulum, who, during an interview on December 2, where he asserted that the proposed Value-Added Tax (VAT) sharing model in the reforms would primarily favor Lagos.

Zulum also warned in a BBC Hausa interview that the bills could harm the Northern region and other parts of the country.

Speaking to the News Agency of Nigeria (NAN) during the Africa Investment Forum Market Days 2024 in Morocco yesterday, Sanwo-Olu said the reforms require collective effort to unlock their full benefits.

He explained, “There’s no way to achieve progress without making necessary adjustments. People need to study the reform provisions to understand their implications. Contrary to claims, Lagos will not be the major beneficiary. In fact, we might face some setbacks in certain areas, but overall, these reforms are aimed at creating a better governance structure for everyone.”

Sanwo-Olu emphasized the importance of hard work to realize the reforms’ potential, noting that Lagos would also gain opportunities to play a more prominent role despite initial challenges.

He highlighted Nigeria’s low tax-to-GDP ratio—among the lowest globally—as a key reason for the urgent need for reforms.

The governor expressed optimism about the changes, assuring Nigerians that the reforms are designed to foster a fairer, more inclusive system rather than harm any particular group.

“This is a significant reform aimed at improving governance for all. The intention is not to hurt anyone but to create opportunities for everyone,” he said.

Sanwo-Olu also revealed ongoing engagement with stakeholders to address misconceptions about the reforms and urged the presidential tax reform committee, led by Taiwo Oyedele, to increase public awareness.

President Bola Tinubu had earlier submitted four tax reform bills to the National Assembly for consideration: the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.