Lagos State Governor Babajide Sanwo-Olu has reassured Nigerians that the ongoing federal tax reforms are designed to protect small businesses and low-income earners, not to burden the poor or tilt the system in favour of the wealthy. According to the governor, the reforms aim to correct long-standing inefficiencies in Nigeria’s tax framework and create a fairer, more transparent system that works for everyone.
Sanwo-Olu gave this assurance on Tuesday at the Lagos Tax Reform Summit held in Ikeja, just days ahead of the planned implementation of Nigeria’s new Tax Act, which is scheduled to take effect on January 1, 2026. The reforms have sparked public debate in recent weeks, with some stakeholders calling for a pause in implementation amid allegations that sections of the tax laws passed by the National Assembly were altered in the final gazetted copies.
Addressing these concerns directly, the governor acknowledged that apprehension among citizens and business owners was understandable, especially in an economy already grappling with inflationary pressures and high operating costs. However, he insisted that fears about the reforms disproportionately hurting the poor were misplaced.
“I know some people fear that these reforms will hurt the poor and favour the wealthy. That is simply not true,” Sanwo-Olu said. “The goal of the new tax law is simple: protect small businesses, ensure that the wealthy meet their obligations, close revenue leakages, and bring more people fairly into the tax system.”
He described the reforms as a necessary intervention to fix a tax structure that has been inefficient and fragmented for decades. In his view, the new framework focuses less on raising tax rates and more on improving compliance, eliminating duplication, and widening the tax net in a balanced way.
Sanwo-Olu also praised Bola Ahmed Tinubu for championing the reforms at the federal level, describing the effort as a bold and courageous move. He noted that meaningful reform is rarely painless, but stressed that the country is already beginning to see signs of progress.
“These changes are not easy, but the hardest part is already giving way to real progress,” the governor said. “It takes experience and confidence to fix a system that has been broken for too long, and I commend President Tinubu for taking that step.”
Reaffirming Lagos State’s alignment with the federal agenda, Sanwo-Olu pledged the state’s full cooperation in implementing a harmonised tax system that promotes economic growth, fairness, and predictability. He emphasized that Lagos, as Nigeria’s commercial nerve centre, has a strong interest in ensuring that tax reforms encourage enterprise rather than stifle it.
“The reforms championed by the Federal Government are not about increasing tax burdens,” he explained. “They are about fixing inefficiencies, eliminating multiple taxation, and rebuilding trust in the tax system. Lagos will continue to work closely with federal authorities to ensure a tax environment that is fair, predictable, and beneficial to all.”
The summit, themed “The Lagos Implementation Road Map – From Reforms to Results: Creating a Tax Environment that Works for All,” was jointly organised by the Office of the Special Adviser on Taxation and Revenue and the Lagos State Treasury Office. It brought together policymakers, regulators, business leaders, and other stakeholders to discuss how federal tax policies can be effectively translated into people-centred outcomes at the state level.
Special Adviser on Taxation and Revenue, Mr. Abdulkabir Ogungbo, revealed that Lagos has already set up a state-level committee to work closely with the Presidential Committee on Fiscal Policy and Tax Reforms. This collaboration has involved extensive consultations with ministries, revenue agencies, financial institutions, transport operators, and local governments to ensure broad-based buy-in.
Similarly, Commissioner for Finance, Mr. Abayomi Oluyomi, stressed that synergy between federal and state governments would be critical to the success of the reforms. He noted that improved tax efficiency would directly impact governments’ ability to fund infrastructure, deliver public services, and improve living standards.
On his part, Chairman of the Lagos State Internal Revenue Service, Mr. Ayodele Subair, said the new framework would simplify tax obligations for small and medium-sized enterprises, protect low-income earners, and reduce compliance costs. He added that Lagos is embedding the principles of the federal reforms into its governance processes in line with the state’s THEMES Plus development agenda.
Delivering the keynote address, Mr. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reform, said the reforms are designed to unify Nigeria’s tax system, enhance transparency, and restore taxpayer confidence nationwide.
While concerns remain, including warnings from some analysts about the potential impact of provisions such as higher capital gains tax and new levies, Lagos State officials insist that the overarching goal of the reforms is long-term economic sustainability. According to Sanwo-Olu, effective implementation and continuous stakeholder engagement will be key to ensuring that the reforms deliver growth without leaving vulnerable citizens behind.
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
