Babajide Sanwo-Olu, governor of Lagos state, has refuted claims that Lagos will benefit most from proposed tax reforms.
Speaking on the sidelines of the Africa Investment Forum Market Days 2024 in Morocco on Wednesday, Sanwo-Olu urged Nigerians to take time to understand the provisions of the reforms, countering claims that Lagos would be the primary beneficiary.
On December 2, Babagana Zulum, governor of Borno state, said the proposed value-added tax (VAT) sharing model in the tax reform bills will only benefit Lagos and Rivers states.
Refuting the claim, Sanwo-Olu said the statement is untrue, adding that the reforms would require everyone to work harder to realise their full benefits.
“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 said.
“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 to fully understand what they’re trying to do.
“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 a shaped-off in some places, but on a larger scale basis, we see it as a global thing for a better governance structure.
“All of us will play better and we’ll be able to discipline ourselves more. Some of the things that you will see is that you need to work harder for you to get the full benefit of the reform. So it’s not just an easy kill.”
According to Sanwo-Olu, while Lagos state may face some losses in certain areas, it will also gain greater opportunities to play a more significant role.
He stressed the urgent need for reform, pointing out Nigeria’s low tax-to-GDP ratio, which ranks among the lowest globally.
‘TAX BILLS WILL UNLOCK SIGNIFICANT OPPORTUNITIES’
The governor expressed optimism that the proposed reforms would unlock significant opportunities for all states and non-governmental actors.
He reassured Nigerians that the reforms are not intended to hurt anyone but to foster a fair and inclusive system that benefits everyone.
“I have a positive attitude to it. I see it as a very wonderful reform. Tax-to-GDP ratio in Nigeria is one of the lowest in the world,” the governor said.
“So, there are a few things that need to happen, and like I keep saying, not only when you make those changes, you will not be able to see the opportunities that are found in your account.
“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.
“The intention is to better a lot, but not just better a lot of one person or one set of people. It’s for all of us, and so we should look at it this way.”
Sanwo-Olu, who attended the forum alongside other governors to attract investors, said he has been actively engaging stakeholders to clarify misconceptions about the reforms.
The governor said he has personally urged the presidential tax reform committee, led by Taiwo Oyedele, to intensify its public engagement efforts.
He also acknowledged that some of the resistance to the reforms stems from misunderstandings but noted that public engagement is a positive development.
On October 3, President Bola Tinubu asked the national assembly to consider and pass four tax reform bills.
The four bills are the Nigeria tax bill, the Nigeria tax administration bill, the Nigeria Revenue Service establishment bill and the joint revenue board establishment bill.
The Northern States Governors Forum (NSGF) opposed the bills, claiming it will negatively impact their region.
Privacy5 years ago
News5 years ago
News4 years ago
News5 years ago
Opinion5 years ago
News5 years ago
Sports4 years ago