Governor Babajide Sanwo-Olu of Lagos State has voiced strong support for the federal government-led tax reform, describing Lagos’ position as “extremely comfortable” while calling for public understanding of the initiative.
Sanwo-Olu made these remarks on Wednesday during an interview with the News Agency of Nigeria on the sidelines of the Africa Investment Forum, Market Days 2024, held in Rabat, Morocco.
Acknowledging resistance from certain quarters, the governor stressed the necessity of the reform to drive progress. He remarked, “What those uncomfortable with the tax reform are not willing to accept is that there is no way of making an omelette without breaking the egg.
“You cannot make changes if the reforms are not set in. I have advised that people should take time to read the provisions of the reform very well and to fully understand what they’re trying to do.”
Addressing concerns about Lagos benefiting disproportionately from the reform, Sanwo-Olu dismissed such claims, clarifying that the state would also face adjustments.
“I’ve seen comments around. Comments like Lagos is going to be the major beneficiary. It is not true. Lagos is actually going to be shaped off in some places, but on a larger scale basis, we see it as a global thing for a better governance structure.
“All of us will play better, and we’ll be able to discipline ourselves more. One of the things that you will see is that you need to work harder for you to get the full benefit of the reform. So it’s not just an easy kill,” he stated.
Sanwo-Olu acknowledged that while Lagos might lose in some areas, it also stands to gain greater opportunities within a more disciplined governance framework.
“I have a positive attitude to it. I see it as a very wonderful reform. Tax-to-GDP ratio in Nigeria is one of the lowest in the world.
“So, there are a few things that need to happen, and like I keep saying, not only when you make those changes, you will not be able to see the opportunities that are found in your account.
“We really need to be bullish. We need to be encouraging ourselves and know that the intention is not to hurt anybody. This, I am very sure of.
“The intention is to better a lot, but not just better a lot of one person or one set of people. It’s for all of us, and so we should look at it this way,” he explained.
The governor also disclosed ongoing efforts to engage stakeholders on the tax reform, highlighting his collaboration with the Presidential Tax Reform Committee, chaired by Taiwo Oyedele.
“We’re doing that. I mean, I, on my own, I have taken it upon myself to speak to some of them and to tell the Presidential Tax Reform Committee, headed by Mr Taiwo Oyedele, to continue public engagement.
“I still spoke with him yesterday to continue that level of engagement and let us populate the salient points. Let us populate the highlight of the major highlights. I think there have just been some misgivings on lack of understanding, but I think it’s a good thing,” Sanwo-Olu stated.
Sanwo-Olu, alongside other governors, is in Morocco to attract investment at the Africa Investment Forum, underscoring the broader economic opportunities tied to the tax reform initiative.
