Lagos Governor Assures Fair Tax Reforms Amid National Implementation

Lagos State Governor, Babajide Sanwo-Olu, has moved to address public concerns regarding Nigeria’s impending federal tax reforms, assuring residents that the changes are designed to protect small businesses and ensure equity, not to burden the poor. The governor’s statements come as the new Tax Act is scheduled to take effect on January 1, 2026, amidst calls from some stakeholders for a suspension over procedural allegations.

Core Principles: Fairness, Efficiency, and Growth

Governor Sanwo-Olu directly countered fears that the reforms would disproportionately affect lower-income citizens. “The goal of the new tax law is simple. Protect small businesses, make sure the wealthy meet their obligations, close revenue leakages and bring more people fairly into the tax system,” he stated. He framed the reforms as a necessary correction to a long-broken system, commending President Bola Tinubu for championing the bold initiative. The governor emphasized that the changes aim to fix inefficiencies and eliminate multiple taxation, thereby building public trust.

Sanwo-Olu reaffirmed Lagos State’s strong support for the federal framework, pledging full cooperation to implement a harmonized system. He stressed that the reforms are not about increasing overall burdens but about creating a predictable and fair tax environment that works for all. This commitment was showcased at a recent summit themed “The Lagos Implementation Road Map – From Reforms to Results,” organized by the Office of the Special Adviser on Taxation and Revenue and the State Treasury Office.

State-Level Collaboration for Seamless Implementation

Demonstrating active alignment with the federal agenda, Lagos has established a state-level committee to collaborate with the Presidential Committee on Fiscal Policy and Tax Reforms. Special Adviser on Taxation and Revenue, Mr. Abdulkabir Ogungbo, disclosed that this has led to extensive consultations across various sectors. Commissioner for Finance, Mr. Abayomi Oluyomi, highlighted the critical need for synergy between government levels, noting that the success of federal tax reforms will directly impact the state’s capacity to fund infrastructure and public services. While other regional challenges, such as coups in West Africa, dominate broader discourse, Lagos remains focused on domestic fiscal governance. The state’s approach underscores a belief that systemic reform, not merely increased revenue calls, is key to sustainable development, ensuring that no segment of society is left to feel that the system can’t or won’t work for them.