Lagos State Governor Babajide Sanwo-Olu has dismissed claims that Lagos will gain the most from Nigeria’s new tax reforms. During the Africa Investment Forum Market Days 2024 in Morocco, the governor urged Nigerians to take time to understand the reforms before drawing conclusions.

The controversy started when Borno State Governor Babagana Zulum claimed that the new value-added tax (VAT) sharing formula would mainly favor Lagos and Rivers States. However, Sanwo-Olu countered, saying, “The idea that Lagos will be the main beneficiary is untrue. Lagos will lose in some areas too. But overall, these reforms will benefit everyone and lead to better governance.”

Sanwo-Olu explained that the reforms are designed to encourage discipline and hard work among all states. “This is not a quick win for anyone. Every state must work harder to see the benefits,” he added.

The governor highlighted Nigeria’s low tax-to-GDP ratio—one of the lowest in the world—as a major reason for the reforms. He believes these changes will create new opportunities for states, businesses, and non-governmental organizations.

“These reforms are not about punishing anyone. They are about creating a fair and inclusive tax system for all,” he explained.

While admitting that Lagos might face some short-term losses, Sanwo-Olu noted that the reforms would allow the state to play a more significant role in Nigeria’s development.

Sanwo-Olu addressed resistance to the reforms, attributing it to misunderstandings. He reassured the public that the government’s intentions are fair and positive.

“Some resistance comes from misconceptions. I’ve engaged with stakeholders to clarify concerns, and I urge everyone to read and understand the details of these reforms,” he said.

The governor also encouraged the Presidential Tax Reform Committee, led by Taiwo Oyedele, to continue educating the public on the reforms’ objectives and benefits.

In October 2024, President Bola Tinubu proposed four tax reform bills to the National Assembly, including the Nigeria Tax Bill and the Joint Revenue Board Establishment Bill. However, some northern governors have opposed these reforms, arguing they could negatively impact their states.

Sanwo-Olu assured Nigerians that the reforms aim to create a balanced and equitable system. “This is not about hurting anyone. It’s about ensuring everyone benefits. We should approach these reforms with an open mind and optimism,” he concluded.