Babajide Sanwo-Olu, governor of Lagos state, has refuted
claims that Lagos will benefit most from proposed tax reforms.
In an interview with NAN 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.
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