Emmanuel OchayiGovernor Denies Lagos’ Dominance Over Tax Reform Bills
Governor Babajide Sanwo-Olu of Lagos State has clarified misconceptions about the recently proposed tax reform bills, denying claims that Lagos would disproportionately benefit from the reforms.
Speaking on the sidelines of the Africa Investment Forum Market Days 2024 in Morocco, Sanwo-Olu urged Nigerians to focus on the broader implications of the reforms, emphasising their potential for national growth.
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“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,” Sanwo-Olu remarked. “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 fully understand what they’re trying to do.”
His comments follow criticisms from stakeholders, including Governor Babagana Zulum of Borno State. Zulum had expressed concerns during an interview, stating that the proposed tax-sharing model in the bills could negatively impact northern states while benefiting Lagos disproportionately.
Lagos to Share Both Gains and Losses
Sanwo-Olu dismissed such claims, highlighting that Lagos would also experience losses in certain areas under the tax reform bills. However, he maintained that the overall impact would benefit governance and accountability across the country.
“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 shaved off in some places, but on a larger scale, we see it as a global thing for a better governance structure,” he explained.
He continued, “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.”
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Addressing Nigeria’s Low Tax-to-GDP Ratio
The governor underscored the urgency of reform, pointing out Nigeria’s low tax-to-GDP ratio, which is among the lowest globally. He emphasised that the proposed tax reform bills would create opportunities for states and private sector actors to improve governance and boost the economy.
“I have a positive attitude to it. I see it as a very wonderful reform. The tax-to-GDP ratio in Nigeria is one of the lowest in the world,” he said.
Sanwo-Olu reassured Nigerians that the intention behind the reforms is inclusive growth. “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,” he added.
Misconceptions and Public Engagement
The governor revealed that some resistance to the reforms stems from misunderstandings. He said he has engaged stakeholders to address these misconceptions and urged the federal tax reform committee, led by Taiwo Oyedele, to intensify its public engagement efforts.
“Not only when you make those changes, you will not be able to see the opportunities that are found in your account. The intention is to better a lot, not just for one person or one set of people. It’s for all of us, and so we should look at it this way,” Sanwo-Olu said.
Legislative Progress on Tax Reform Bills
President Bola Tinubu had previously urged the National Assembly to pass four critical tax reform bills:
- The Nigeria Tax Bill
- The Nigeria Tax Administration Bill
- The Nigeria Revenue Service Establishment Bill
- The Joint Revenue Board Establishment Bill
Sanwo-Olu called for unity in addressing these reforms, emphasising that the country stands to gain if the bills are implemented effectively.
“I see it as a global thing for better governance. All of us will play better, and we’ll be able to discipline ourselves more,” he concluded.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
