The Governor of Lagos State, Babajide Olusola Sanwo-Olu, on Tuesday reaffirmed the state’s full alignment with the Federal Government’s ongoing tax reform agenda, describing it as a bold and necessary step towards building a fair, efficient and growth-oriented fiscal system for Nigeria.
The governor made this known while delivering the keynote address as Chief Host at the Tax Reform Summit held at the Marriott Hotel, GRA, Ikeja, Lagos.
The summit was themed “The Lagos Implementation Road Map.”
Sanwo-Olu noted that Lagos State operates within a national fiscal framework and strongly supports the reforms being championed by President Bola Ahmed Tinubu, GCFR.
According to him, the reforms are aimed at simplifying Nigeria’s tax laws, reducing the multiplicity of taxes, strengthening administration, and modernising revenue collection through technology.
“These reforms are designed to create a system that supports economic growth while ensuring fairness, predictability and improved compliance,” the governor said.
Addressing concerns raised by critics who argue that the reforms would increase the burden on the poor, Sanwo-Olu dismissed such claims, stating that the reforms would instead protect small businesses, ensure that wealthy individuals meet their civic obligations, block revenue leakages and expand the tax net.
“I advise that we all read the details of these bold reforms that only an audacious, confident and experienced leader can undertake. The pains are gradually giving way to the gains,” he added, while commending President Tinubu for his leadership and courage.
The governor highlighted Lagos State’s long-standing commitment to fiscal sustainability, noting that over 70 per cent of the state’s total revenue is generated internally.
He attributed this achievement to years of institutional reforms, digitalisation and active taxpayer engagement.
As the Federal Government advances efforts to harmonise tax laws, strengthen Value Added Tax (VAT) administration, improve coordination across tiers of government and separate tax policy from administration, Sanwo-Olu said Lagos is positioning itself as a leading sub-national entity in implementing the reforms.
“Our focus is not merely compliance with new frameworks, but effective execution that delivers real value to citizens and businesses,” he stated.
He described the summit theme as timely and significant, stressing that Lagos is ready to move beyond policy discussions to practical, results-driven implementation.
According to him, tax reform in Lagos is being treated as a governance reform anchored on simplicity, transparency, digital efficiency and fairness.
Sanwo-Olu emphasised that taxation represents a social contract between government and citizens, noting that compliance increases when people trust that government is accountable and responsive.
He assured stakeholders that tax revenues in Lagos are consistently reinvested in critical sectors such as transportation, healthcare, education, security, environmental resilience and social protection programmes under the THEMES+ Development Agenda.
The governor also revealed that Lagos is strengthening its systems to support consumption-based taxation, data integration, taxpayer protection, efficient dispute resolution and a predictable tax environment capable of attracting investment and innovation.
He stressed that the success of Nigeria’s tax reform journey would depend largely on effective implementation at the state level, adding that Lagos is ready to play a leadership role through stronger intergovernmental collaboration and sustained engagement with the private sector and professional bodies.
Sanwo-Olu urged participants to ensure that the summit produces practical and actionable outcomes that align with national reform objectives while reflecting the economic realities of Lagos State.
He said, “I want to assure all stakeholders that Lagos State remains committed to a fair, transparent and growth-friendly tax system that supports sustainable development and shared prosperity. Together, we can build a tax system that works for government, businesses and citizens alike.”