Lagos State Governor, Babajide Sanwo-Olu, has assured residents that ongoing federal tax reforms will not hurt the poor or favour the wealthy, but instead create a fairer and more efficient system.
The governor made the comment at the Lagos Tax Reform Summit in Ikeja on Tuesday.
Nigeria’s Tax Act is set to take effect from Thursday, January 1, 2026, with some stakeholders calling for a suspension of its implementation over allegations that parts of the tax laws passed by the National Assembly were altered in the gazetted copies.
Sanwo-Olu admitted concerns of citizens over the act, but clarified that the reform will protect small businesses.
“I know some people fear that these reforms will hurt the poor and favour the wealthy. That is simply not true. The goal of the new tax law is simple. Protect small businesses, make sure the wealthy meet their obligations, close revenue leakages and bring more people fairly into the tax system.”
He commended President Bola Tinubu for championing the reforms, describing them as bold steps to fix a system that had been broken for too long.
“These changes are not easy. But the hard part is already giving way to real progress. I commend President Tinubu for having the courage to take these steps. It takes experience and confidence to fix a system that has been broken for too long,” the governor added.
Sanwo-Olu reaffirmed Lagos’ strong support for the Federal Government’s tax reform framework, pledging full cooperation in implementing a harmonised and efficient tax system that promotes growth and fairness.
“The reforms championed by the Federal Government are not about increasing tax burdens but about fixing inefficiencies, eliminating multiple taxation and building trust in the system. Lagos will continue to work closely with federal authorities to ensure a tax environment that is fair, predictable and beneficial to all,” he said.
The summit, themed “The Lagos Implementation Road Map – From Reforms to Results: Creating a Tax Environment that Works for All”, was jointly organised by the Office of the Special Adviser on Taxation and Revenue and the State Treasury Office.
Special Adviser on Taxation and Revenue, Mr Abdulkabir Ogungbo, said the summit demonstrated Lagos’ active alignment with the federal framework.
He disclosed that a state-level committee had been set up to collaborate with the Presidential Committee on Fiscal Policy and Tax Reforms, leading to consultations across ministries, revenue agencies, financial institutions, transport operators, and local governments.
Commissioner for Finance, Mr Abayomi Oluyomi, emphasized the importance of synergy between federal and state governments.
“The move from policy to practice requires synergy across all levels of government. The success of federal tax reforms will directly impact our capacity to fund infrastructure, deliver public services and improve the quality of life of our people,” he said.
Chairman of the Lagos State Internal Revenue Service (LIRS), Mr Ayodele Subair, said the new framework would simplify the tax base for small and medium-scale enterprises, protect low-income earners, and reduce compliance burdens.
He added that Lagos is embedding federal tax reform principles into its governance processes in line with the state’s THEMES Plus development agenda.
He added that Lagos is embedding federal tax reform principles into its governance processes in line with the state’s THEMES Plus development agenda.
Delivering the keynote address, Chairman of the Presidential Committee on Fiscal Policy and Tax Reform, Mr Taiwo Oyedele, said the federal reforms were designed to create a unified, transparent, and efficient tax system across Nigeria.
He stressed that standardisation and harmonisation were key to rebuilding taxpayer confidence and ensuring long-term fiscal sustainability, noting that Lagos’ commitment would significantly strengthen national implementation efforts.
Last month, a new assessment by the Alliance for Economic Research and Ethics LTD/GTE had raised red flags over the potential economic fallout of the Nigeria Tax Act, 2025, warning that several provisions could erode business profitability, deter investors and weaken Nigeria’s competitiveness within Africa.
The report says the severe increase in the Capital Gains Tax, the imposition of a new Development Levy, the uncertainty cast upon the Free Trade Zones, and the unusual domicile of the Single Window Trade Platform threaten to cripple the very investment and business growth that Nigeria desperately needs to secure its long-term economic future.