Lagos State Governor Babajide Sanwo-Olu has refuted claims that Lagos would be the main beneficiary of the proposed tax reforms.

In an interview at the Africa Investment Forum Market Days 2024 in Morocco on Wednesday, the governor urged Nigerians to take time to fully understand the provisions of the reforms, countering statements made by Borno State Governor Babagana Zulum.

Recall that on December 2, Zulum suggested that the new VAT sharing model would only benefit Lagos and Rivers states. Sanwo-Olu, however, refuted this claim, stating that it was untrue and emphasising that the reforms require collective effort to realise their full benefits.

“You cannot make changes if the reforms are not set in,” Sanwo-Olu said, adding, “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.”

He explained that while Lagos may experience some losses in certain areas, the state would also have greater opportunities for improvement. The governor stressed the importance of the tax reforms, pointing out Nigeria’s low tax-to-GDP ratio, which is among the lowest globally.

“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,” he 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.”

Sanwo-Olu assured Nigerians that the reforms are not designed to harm anyone, but rather to foster a fair and inclusive system that benefits all. He encouraged Nigerians to view the reforms as a collective opportunity for improvement, saying,

“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.”

The governor, who attended the forum alongside other state leaders to attract investors, acknowledged that some resistance to the reforms stemmed from misunderstandings.

He also noted that public engagement efforts were vital to clarifying misconceptions, and he urged the presidential tax reform committee, led by Taiwo Oyedele, to intensify its outreach.

In early October, President Bola Tinubu called on the national assembly to consider four key tax reform bills, which have faced opposition from the Northern States Governors Forum (NSGF), who argue the bills could negatively affect their region. (AriseNews TV)