Lagos State Governor, Babajide Sanwo-Olu, has assured residents that ongoing federal tax reforms is not going to harm the poor or favour the rich, however as a substitute create a fairer and extra environment friendly system.
The governor made the remark on the Lagos Tax Reform Summit in Ikeja on Tuesday.
Nigeria’s Tax Act is ready to take impact from Thursday, January 1, 2026, with some stakeholders calling for a suspension of its implementation over allegations that elements of the tax legal guidelines handed by the Nationwide Meeting had been altered within the gazetted copies.
What Sanwo-Olu is saying
Sanwo-Olu admitted considerations of residents over the act, however clarified that the reform will shield small companies.
“I do know some folks concern that these reforms will harm the poor and favour the rich. That’s merely not true. The purpose of the brand new tax legislation is easy. Shield small companies, be certain the rich meet their obligations, shut income leakages and produce extra folks pretty into the tax system.”
He counseled President Bola Tinubu for championing the reforms, describing them as daring steps to repair a system that had been damaged for too lengthy.
“These modifications should not simple. However the arduous half is already giving solution to actual progress. I commend President Tinubu for having the braveness to take these steps. It takes expertise and confidence to repair a system that has been damaged for too lengthy,” the governor added.
Lagos aligns with federal agenda
Sanwo-Olu reaffirmed Lagos’ robust help for the Federal Authorities’s tax reform framework, pledging full cooperation in implementing a harmonised and environment friendly tax system that promotes progress and equity.
“The reforms championed by the Federal Authorities should not about rising tax burdens however about fixing inefficiencies, eliminating a number of taxation and constructing belief within the system. Lagos will proceed to work carefully with federal authorities to make sure a tax surroundings that’s truthful, predictable and useful to all,” he mentioned.
The summit, themed “The Lagos Implementation Highway Map – From Reforms to Outcomes: Making a Tax Atmosphere that Works for All”, was collectively organised by the Workplace of the Particular Adviser on Taxation and Income and the State Treasury Workplace.
- Sanwo-Olu famous that the reforms would assist block income leakages, increase the tax web, scale back duplication in tax assortment, and strengthen accountability, whereas defending small companies and susceptible residents.
- He harassed that Lagos is dedicated to translating federal tax insurance policies into sensible, people-focused outcomes on the sub-national degree.
Stakeholder engagement and collaboration
Particular Adviser on Taxation and Income, Mr Abdulkabir Ogungbo, mentioned the summit demonstrated Lagos’ energetic alignment with the federal framework.
He disclosed {that a} state-level committee had been set as much as collaborate with the Presidential Committee on Fiscal Coverage and Tax Reforms, resulting in consultations throughout ministries, income businesses, monetary establishments, transport operators, and native governments.
Commissioner for Finance, Mr Abayomi Oluyomi, emphasised the significance of synergy between federal and state governments.
“The transfer from coverage to follow requires synergy throughout all ranges of presidency. The success of federal tax reforms will instantly impression our capability to fund infrastructure, ship public companies and enhance the standard of lifetime of our folks,” he mentioned.
Simplifying taxes for SMEs
Chairman of the Lagos State Inner Income Service (LIRS), Mr Ayodele Subair, mentioned the brand new framework would simplify the tax base for small and medium-scale enterprises, shield low-income earners, and scale back compliance burdens.
He added that Lagos is embedding federal tax reform ideas into its governance processes consistent with the state’s THEMES Plus improvement agenda.
Delivering the keynote handle, Chairman of the Presidential Committee on Fiscal Coverage and Tax Reform, Mr Taiwo Oyedele, mentioned the federal reforms had been designed to create a unified, clear, and environment friendly tax system throughout Nigeria.
He harassed that standardisation and harmonisation had been key to rebuilding taxpayer confidence and making certain long-term fiscal sustainability, noting that Lagos’ dedication would considerably strengthen nationwide implementation efforts.
What you need to know
Final month, a new evaluation by the Alliance for Financial Analysis and Ethics LTD/GTE had raised crimson flags over the potential financial fallout of the Nigeria Tax Act, 2025, warning that a number of provisions might erode enterprise profitability, deter traders and weaken Nigeria’s competitiveness inside Africa.
The report says the extreme improve within the Capital Good points Tax, the imposition of a brand new Improvement Levy, the uncertainty forged upon the Free Commerce Zones, and the bizarre domicile of the Single Window Commerce Platform threaten to cripple the very funding and enterprise progress that Nigeria desperately must safe its long-term financial future.
Be First to Comment