Sanwo-Olu denies claims Lagos will benefit most from Tax Reform Bills

Sanwo-Olu denies claims Lagos will benefit most from Tax Reform Bills

Babajide Sanwo-Olu, the governor of Lagos State, has rejected that the proposed tax reform laws will benefit Lagos the most.

Sanwo-Olu urged Nigerians to take the time to grasp the reform legislation’s provisions, rejecting allegations that Lagos will be the principal beneficiary.

According to a report, the Governor of Borno State, Babagana Zulum, stated in an interview with Channels Television on December 2 that the proposed Value-Added Tax sharing scheme under the tax reform measures will primarily benefit Lagos State.

Furthermore, in an interview with BBC Hausa last Friday, Zulum cautioned that the laws could have disastrous effects for the Northern area and other parts of the country.

Sanwo-Olu, speaking to NAN on the sidelines of the Africa Investment Forum Market Days 2024 in Morocco on Wednesday, said the reforms would need everyone to work harder to get the full advantages.

He said, “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.

READ ALSO:

• Senate won’t back down on Tax Reform Bills – Akpabio
• Trial of Auxiliary for attempted murder, armed robbery stalled
• Police clash with motorcycle riders in Lagos

“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.

“I have 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 you will see is that you need to work harder to get the full benefit of the reform. So it’s not just an easy kill.”

Sanwo-Olu went on to say that while Lagos state may suffer certain losses in certain areas, it will also gain additional opportunity to play a larger role.

He emphasised the urgent need for reform, citing Nigeria’s low tax-to-GDP ratio, which is among the lowest in the world.

However, the governor expressed confidence that the planned reforms will create enormous opportunities for all states and non-governmental entities.

Sanwo-Olu told Nigerians that the reforms are not intended to harm anyone, but rather to create a fair and inclusive system that benefits everyone.

READ ALSO:

• NAF airstrikes hit bandit camps in Zamfara, many notorious leaders killed
• 2027 presidency: Goodluck Jonathan’s posters flood Kano
• Over 500 terrorist leaders eliminated in one year – DHQ

“I have a positive attitude toward it. I see it as a very wonderful reform. The 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.”

Sanwo-Olu stated that he has aggressively engaged stakeholders to clear up misconceptions regarding the reforms and that he has personally asked the presidential tax reform committee, led by Taiwo Oyedele, to increase its public engagement activities.

He also acknowledged that some of the opposition to the reforms originates from misunderstandings but emphasised that public participation is a healthy trend.

On October 3, President Bola Tinubu directed the national assembly to review and enact four tax reform bills: the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.