Lagos State Governor Babajide Sanwo-Olu has dismissed claims that Lagos would disproportionately benefit from the proposed national tax reforms.
Speaking on Wednesday at the Africa Investment Forum Market Days 2024 in Morocco, Mr Sanwo-Olu countered earlier statements by Borno State Governor Babagana Zulum who suggested that Lagos and Rivers States stood to gain the most under the new VAT-sharing model.
Sanwo-Olu emphasised the need for a thorough understanding of the reforms, urging Nigerians to approach them with an open mind.
He argued that the changes aim to benefit all states collectively, not just a select few.
In his remarks, Sanwo-Olu stated: “You cannot make changes if the reforms are not set in. 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.”
He acknowledged that while Lagos might experience some losses in specific areas, the state would also gain opportunities for economic improvement.
“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 said.
The governor pointed out Nigeria’s low tax-to-GDP ratio, which, at less than 10%, is among the lowest globally. He described the reforms as a necessary step to create a more equitable and efficient tax system.
Sanwo-Olu called on Nigerians to view the reforms as a collective opportunity for progress, stressing: “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.”
He urged the presidential tax reform committee led by Taiwo Oyedele to intensify public engagement efforts to dispel misunderstandings and build support for the reforms.
The governor’s comments come amid opposition to the reforms from the Northern States Governors Forum (NSGF) which has raised concerns about their potential impact on the northern region.
