Sanwo-Olu Backs Federal Tax Reform, Calls for Public Understanding

Governor Babajide Sanwo-Olu of Lagos State has expressed strong support for the federal government’s tax reform, describing the state’s position on the matter as “extremely comfortable.”

Speaking on Wednesday during an interview with the News Agency of Nigeria (NAN) at the Africa Investment Forum, Market Days 2024, in Rabat, Morocco, Sanwo-Olu emphasized the necessity of the reforms, despite resistance from some quarters.

“What those opposing the tax reform fail to understand is that there is no way to make an omelette without breaking eggs,” he said. “Reforms require change, and while uncomfortable, they are necessary. I encourage everyone to thoroughly read and understand the provisions of the reform before forming opinions.”

Addressing claims that Lagos State would disproportionately benefit from the reform, Sanwo-Olu dismissed them as misconceptions. “It is not true. Lagos will face some drawbacks in certain areas. However, from a broader perspective, we see it as an opportunity to improve governance structures across the board,” he explained. “This reform demands more discipline and harder work from everyone to reap its full benefits—it’s not an easy win.”

The governor acknowledged that while Lagos may lose out in some aspects, it would also gain greater opportunities to play a larger role in the country’s economic landscape. “I have a positive outlook on this reform. It is well-intentioned and aims to create a better system for everyone, not just a select few.”

Sanwo-Olu also highlighted Nigeria’s low tax-to-GDP ratio, noting the urgency of addressing this gap through effective reforms. “We need to be proactive and optimistic. The aim of this reform is not to harm anyone but to uplift the collective good,” he said.

During his visit to Morocco, where he is engaging with other governors and investors at the Africa Investment Forum, Sanwo-Olu shared that he had been actively discussing the reform with stakeholders. He revealed ongoing conversations with the Presidential Tax Reform Committee, led by Mr. Taiwo Oyedele, urging continued public engagement to address misunderstandings about the reform.

“I have been speaking with stakeholders and encouraging the committee to intensify its outreach and clearly communicate the highlights and benefits of the reform. The resistance largely stems from a lack of understanding, but I believe this is a positive and necessary step forward,” Sanwo-Olu concluded.