Lagos State Governor Babajide Sanwo-Olu has called on stakeholders to approach the Federal Government’s proposed Tax Reform Bills with constructive engagement, describing the reforms as essential to overhauling Nigeria’s fiscal framework. Speaking at the Africa Investment Forum, Market Days 2024, in Rabat, Morocco, the governor pointed out the critical need for modernization to ensure long-term economic growth and stability.
Governor Sanwo-Olu addressed growing concerns from various quarters about the impact of these reforms, describing the proposals as a transformative initiative designed to foster an inclusive and efficient tax system. He explained that the reform’s focus extends beyond short-term advantages, aiming instead to establish a sustainable and balanced economic foundation for the future.
Acknowledging fears about Lagos State potentially benefiting disproportionately, the governor dismissed such notions as misconceptions. He clarified that while the reforms may bring short-term adjustments for Lagos, their overarching aim is to create equity across states. “These reforms are designed to establish a level playing field,” Sanwo-Olu explained. “Although Lagos may encounter some immediate setbacks, the long-term opportunities far outweigh the challenges. This is a necessary evolution for national growth, not a strategy for regional dominance.”
Governor Sanwo-Olu also drew attention to Nigeria’s alarmingly low tax-to-GDP ratio, which ranks among the lowest in the world. He emphasized the critical importance of addressing this issue to ensure fiscal sustainability and economic competitiveness. According to him, the current system fails to adequately support public services and investments. “We cannot continue on this trajectory. Without meaningful reforms, Nigeria risks stalling its economic potential,” he remarked.
Despite the potential challenges posed by the new framework, the governor expressed confidence in Lagos State’s ability to adapt and thrive. He described the reforms as an opportunity to reinforce Lagos’ leadership role in driving national economic progress. “This is about more than Lagos; it’s about setting an example of resilience and innovative governance for the rest of Nigeria,” Sanwo-Olu stated.
