Sanwo-Olu Supports Federal Tax Reform, Acknowledges Losses for Lagos

Sanwo-Olu Supports Federal Tax Reform, Acknowledges Losses for Lagos

By Fly Cable News

Lagos State Governor Babajide Sanwo-Olu has expressed his backing for the federal government’s tax reform, stating that while Lagos may face some losses, the broader benefits of the reform are worth it. He emphasized that the state’s position is “extremely comfortable,” despite some resistance to the changes.

In an interview with the News Agency of Nigeria (NAN) on Wednesday at the Africa Investment Forum, Market Days 2024 in Rabat, Morocco, Sanwo-Olu highlighted the importance of the reform, noting that significant changes often come with challenges. He compared the process to making an omelette, saying, “You cannot make changes without breaking some eggs.” He encouraged people to carefully study the provisions of the reform to fully understand its goals.

Sanwo-Olu clarified that while some believe Lagos will be the major beneficiary, the state will actually experience some setbacks. However, he sees the tax reform as a global initiative that will ultimately promote better governance, greater discipline, and opportunities for all. He acknowledged that Lagos might lose in certain areas but emphasized that the reform provides a chance for a larger role in the nation’s development.

He also pointed out that Nigeria’s tax-to-GDP ratio is among the lowest globally, stressing the need for reforms to improve the country’s economic standing. Sanwo-Olu remains optimistic about the tax changes, assuring that the intention behind them is to benefit the wider society, not just a specific group.

While in Morocco, Sanwo-Olu has been actively engaging with other governors and investors, encouraging public discussions on the tax reform and urging continued engagement by the Presidential Tax Reform Committee.