Sanwo-Olu urges effective implementation as Lagos backs national tax reforms

Babajide Sanwo-Olu of Lagos State has said that the success of Nigeria’s ongoing tax reforms will depend largely on effective implementation at the sub-national level.

Sanwo-Olu said that Lagos was ready to play a leadership role in the implementation.

He spoke on Tuesday at a tax reform summit in Lagos State, with the theme: “From Reforms to Results”.

At the summit, stakeholders examined practical steps for translating policy into measurable outcomes.

The governor said that Lagos, regarded as a trailblazer in fiscal innovation and regulatory administration, could no longer rely on past achievements in the face of rapid population growth, expanding economic activities and rising competition.

“Lagos cannot rest on its past glory. In a rapidly-changing economic environment, the question before us is not whether to adapt, but how to adapt most effectively,” Sanwo-Olu said.

He said that the tax reforms were not merely about increasing revenue, but about building public trust, encouraging voluntary compliance and creating a fiscal ecosystem where citizens and businesses could thrive.

“Taxation is a social contract. When government is responsible, practical and responsive, people are more willing to comply because they can see their contributions translated into infrastructure, social services and improved quality of life,” he said.

Sanwo-Olu said that Lagos would continue to deploy tax revenues toward transport infrastructure, education, security, environmental resilience and targeted social protection programmes.

He said that the state consistently achieved over 90 per cent budget implementation with capital expenditure outweighing recurrent spending.

“As national reforms place emphasis on consumption-based taxation, data integration and system efficiency, Lagos is positioning itself to ensure that implementation delivers real value to our people and our economy.”

He dismissed claims that the reforms would place additional burden on the poor, saying that the objective was to protect vulnerable groups and strengthen compliance among higher income earners.

“Only a small percentage currently bears the tax burden.

” These reforms are designed to broaden the base, protect small businesses and ensure equity across the system,” he said.

Sanwo-Olu’s Special Adviser on Revenue and Taxation, Mr Abdulkabir Ogungbo, said the summit marked another milestone to work in alignment with stakeholders and the presidential committee on tax reforms.

“The committee is dedicated to unveiling strategies for the integration of revenue administrative framework in a renewed committment to establish innovative, intentional and transparent seamless system that would address multiple taxation,” he said.

Earlier, the state Commissioner for Finance, Mr Oluyomi Abayomi, described the tax reform agenda as timely and critical to sustaining the trajectory of the growth of Lagos.

He said that Lagos State Ministry of Finance was ready to provide coordination and leadership to translate deliberations from the summit into executable plans.

“We have moved beyond theory. The hard work now is implementation, and the ministry is prepared to drive this process in collaboration with other tiers of government, the private sector and professionals.

“This is more than revenue collection. It is about fostering trust, ensuring fairness and creating a system where everyone especially small businesses can prosper while those with greater capacity meet their full obligations,” Abayomi said.

He expressed confidence that, with sustained collaboration and data-driven approaches, Lagos would continue to lead in implementing reforms that would align with national objectives while reflecting the state’s unique economic realities.