Lagos State Governor Babajide Sanwo-Olu has assured residents and enterprise homeowners that Nigeria’s newly gazetted tax reforms are designed to guard small companies and weak residents, to not place further burdens on low-income earners. Governor Sanwo-Olu spoke on the Lagos Tax Reform Summit held in Ikeja on Tuesday, the place he reaffirmed Lagos State’s sturdy assist for the continuing federal tax reform agenda.
Sanwo-Olu stated some members of the general public feared that the brand new tax system would favour the rich on the expense of abnormal individuals, however he maintained that these issues had been misplaced.
“I do know some individuals concern that these reforms will harm the poor and favour the rich. That’s merely not true. The purpose of the brand new tax regulation is straightforward: shield small companies, make sure that the rich meet their obligations, shut income leakages, and convey extra individuals pretty into the tax system,” he stated.
The governor counseled President Bola Tinubu for championing the reforms, describing them as daring steps towards fixing a tax system he stated had been “damaged for too lengthy.” Sanwo-Olu emphasised that the reforms are not about rising tax burdens, however about eliminating a number of taxation, increasing the tax base, and making certain a extra clear and environment friendly system.
Sanwo-Olu additionally reiterated Lagos State’s dedication to working carefully with federal authorities to implement the reforms in a means that promotes development, equity, and predictability. He famous that Lagos, as certainly one of Nigeria’s main financial hubs, is positioning itself to translate coverage into actual worth for residents and companies.
On the summit organised by the Workplace of the Particular Adviser on Taxation and Income and the State Treasury Workplace, officers mentioned methods to harmonise income administration with the Federal Authorities’s fiscal targets. Sanwo-Olu underscored that the reforms will assist block income leakages, cut back duplication in tax assortment, and strengthen accountability.
Consultants say certainty and readability in tax coverage are key to encouraging compliance and attracting funding particularly for micro, small and medium enterprises (MSMEs) that depend on predictable fiscal frameworks to plan operations, entry finance, and scale their companies. Earlier reform proposals embrace quite a few exemptions and reliefs for low-income earners and small companies, resembling company revenue tax exemptions for enterprises beneath particular thresholds and expanded tax reliefs for people.
Sanwo-Olu’s remarks come amid wider debate over the brand new tax regime, which is ready to take impact on January 1, 2026. Whereas some stakeholders have raised issues about elements of the gazetted regulation, state leaders like Sanwo-Olu argue that broad stakeholder engagement and efficient implementation will likely be important to delivering anticipated advantages to residents and companies alike.
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