Governor Babajide Sanwo-Olu of Lagos State has expressed his strong support for the federal government-led tax reform, describing the state’s position as “extremely comfortable.”
In an interview with Journalists on the sidelines of the Africa Investment Forum, Market Days 2024, in Rabat, Morocco, Sanwo-Olu emphasized the importance of the tax reform, despite resistance from some sectors. He compared the reform process to making an omelette, saying, “You cannot make changes if the reforms are not set in.”
Sanwo-Olu encouraged those critical of the reforms to take time to fully understand the provisions, insisting that the changes were designed for long-term improvements in governance. “I’ve seen comments suggesting Lagos will be the major beneficiary. That’s not true. While Lagos may lose in some areas, we view the reform as a global step towards a better governance structure,” he said.
He further clarified that the reform would not be an “easy kill,” noting that it would require hard work to reap its full benefits. The governor highlighted that the tax-to-GDP ratio in Nigeria is among the lowest in the world, underlining the need for such changes to drive economic growth and improved governance.
Sanwo-Olu acknowledged that Lagos, as the country’s economic hub, would face some losses, but also recognized that the state had a significant opportunity to play a larger role in the reformed system. “I have a positive attitude towards this reform. I see it as a wonderful initiative for better governance,” he remarked.
The governor urged Nigerians to embrace the changes, emphasizing that the reform’s intention was not to harm anyone but to benefit all citizens. He added, “We need to be bullish and encourage each other. The goal is not to better just one person or group, but to uplift everyone.”
As part of his efforts to engage with the reform, Sanwo-Olu revealed that he has been in talks with fellow governors and the Presidential Tax Reform Committee, headed by Taiwo Oyedele. He stressed the importance of continued public engagement to ensure the key points of the reform are clearly communicated and understood.
“There have been some misgivings, but I believe it’s a good thing for the country,” Sanwo-Olu concluded.
