Sanwo-Olu: New Tax Law Designed to Boost Sub National Govts’ Revenue Needs

• Answers critics, says Tinubu’s tax reform will relieve the poor

•Oyedele: Quality data central to the success of new tax framework

The success of President Bola Ahmed Tinubu’s tax reform journey will depend not only on legislation at the federal level, but also on the effective implementation of the new tax law at the sub national level, Lagos State Governor Babajide Sanwo-Olu said on Tuesday.

Sanwo-Olu disclosed Lagos had been readjusting its revenue portal in readiness for the harmonisation of the new tax law expected to take effect in January, stressing the state would effectively play its role in aligning the policy with practice and strengthen inter-governmental collaboration.

Sanwo-Olu spoke at the Tax Reform Summit organised by the Lagos State Government. The two-day event holding at Marriott Hotel in Ikeja, is jointly hosted by the Office of the Special

Adviser on Taxation and Revenue and the State Treasury Office, with the theme: “Tax Reform Summit: The Lagos Implementation Road Map”.

The governor said Lagos had been operating within a national fiscal framework, noting that the State remained fully aligned with the ongoing tax reform initiated by the Tinubu administration.

Sanwo-Olu dismissed critics who argued that the reforms would put more burden on the poor and further strengthen the hand of the rich, pointing out that the new tax law sought to simplify the nation’s tax regime by reducing multiplicity, strengthening administration, and modernising revenue collection through technology.

He said: “The new tax laws initiated by Mr. President are fundamentally designed to create a system that supports economic growth at sub national level while ensuring fairness, predictability and improved compliance.

“Contrary to its critics’ baseless assumptions, the new tax law will protect small businesses and ensure that the rich fulfill their obligations to the society. It will block leakages and expand the tax net.

“Instead of making futile attempts to undermine the progress, we must give kudos to President Tinubu for taking the bold steps he is taking, considering the fact that the pains are gradually giving way for the gains.

“We will welcome a system that will reduce multiplicity, strengthen administration and modernise revenue collection through technology. Only an audacious, confident and experienced leader can make these bold reforms.”

“The success of the tax reform journey will depend not only on legislation at the federal level, but on effective implementation at the state level.

“Lagos is ready to play its leadership role by aligning policy with practice, strengthening inter-governmental collaboration, and maintaining continuous engagement with the private sector and professional bodies.”

Sanwo-Olu said the national tax reforms resonated with Lagos’ “long-standing approach” to public finance, noting that the State faced unique development pressures that demand sustainable, internally-driven revenue solutions.

The summit’s focus, the governor said, signaled the state’s readiness to move beyond policy conversations to practical implementation.

He said the approach adopted by the Lagos State Government towards the new tax framework was to encourage governance reform anchored on simplicity, transparency, digital efficiency and fairness.

“Lagos State is positioning itself as a leading sub-national in the implementation of these reforms. Our focus is not merely compliance with new frameworks, but effective execution that delivers real value to citizens and businesses,” Sanwo-Olu said.

Commissioner for Finance, Mr. Abayomi Oluyomi, noted that Lagos remained a trailblazer in fiscal innovation and revenue administration, but the new tax framework presented both a challenge and an opportunity to build a tax system that would not only be more efficient but also equitable and conducive to sustain the state’s economic growth.

The Commissioner said: “The success of the tax reform is intrinsically tied to the synergy between the state and our 57 Local Governments. We must harmonise our efforts, eliminate duplication, and present a unified, taxpayer-friendly front. We must ensure data-driven implementation.

“Property enumeration, digital mapping, and the integration of the Payer ID with the National TIN are not academic exercises. They are practical, technical steps we must master.

“A fair, transparent, and data-backed property valuation system is fundamental to unlocking the sector’s full potential and achieving our ambitious revenue targets.”

Guest speaker and chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, noted that quality and accurate data was crucial to the effective implementation of the tax law.

In the new tax regime, Oyedele said the federal government would provide policy direction and harmonisation, while the states and local government would carry out implementation, administration and service delivery.

He said the standardisation of the tax system would lead the country away from fragmented, discretionary and opaque tax practices.

Lagos, he said, must take up the challenges thrown at it by the new tax framework and pilot solution which other sub-nationals could emulate.

“In Nigeria today, the number of active tax paying individuals is under 10 million for the whole country. If our people are committed to their tax obligations, that is the number we should have for Lagos State alone based on the population of active workers,” Oyedele said.

Chairman of Lagos Inland Revenue Service (LIRS), Mr. Ayodele Subair, said the revenue collection agency had finalised a targeted awareness programme to educate Lagosians on the new tax law.

He said: “A structured reform implementation programme was subsequently established to guide coordinated execution, digital alignment and institutional capacity building.

“Sensitisation has been deliberately phased, allowing national guidance from the Presidential Committee on Fiscal Policy and Tax Reforms to provide a consistent baseline.”