Sanwoolu refutes claims Lagos will benefit most from tax reform bills
The Governor of Lagos State, Babajide Sanwo-Olu, has denied claims that Lagos will benefit most from proposed tax reform bills.
Sanwo-Olu urged Nigerians to take time to understand the provisions of the reform bills, refuting claims that Lagos would be the primary beneficiary.
PUNCH Online reports that the Governor of Borno State, Babagana Zulum, during an interview on Channels Television on December 2, said the proposed Value-added Tax sharing model in the tax reform bills would only benefit Lagos State.
Also, in an interview with BBC Hausa last Friday, Zulum warned that the bills could have devastating consequences for the Northern region and other parts of the country.
However, In an interview with NAN on the sidelines of the Africa Investment Forum Market Days 2024 in Morocco on Wednesday, Sanwo-Olu said the reforms would require everyone to work harder to realise their full benefits.
He said, “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.
“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. One of the things you will see is that you need to work harder to get the full benefit of the reform. So it’s not just an easy kill.”
Speaking further, Sanwo-Olu stated that 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.
The governor, however, 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. The tax-to-GDP ratio in Nigeria is one of the lowest in the world,
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 said he has actively engaged stakeholders to clarify the misconceptions about the reforms, adding that 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 Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service Establishment Bill and the Joint Revenue Board Establishment Bill.
(PUNCH)
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