Lagos State Governor, Babajide Sanwo-Olu has addressed claims that Lagos will be the major beneficiary of the federal government’s proposed tax reform, stating that the state is already in an “extremely comfortable” position. His comments came in response to remarks by Borno State Governor Babagana Zulum, who had suggested that the new Value Added Tax (VAT) sharing model in the reform would mainly benefit Lagos State.
During an interview at the Africa Investment Forum, Market Days 2024, in Rabat, Morocco, Governor Zulum warned that the tax reform could have negative consequences for the Northern region and other parts of the country. He expressed concerns about the impact the new sharing model might have outside Lagos.
However, Governor Sanwo-Olu disagreed with Zulum’s assessment. He explained that although Lagos may experience some losses, the reforms will provide a significant opportunity for the state to play a more substantial role in the national economic landscape. He emphasized that the reforms will require everyone to work harder to realize their full potential.
Sanwo-Olu acknowledged the discomfort some people feel about the reforms, noting that change often comes with challenges. He encouraged citizens to carefully read and understand the provisions of the reform. The governor pointed out that while Lagos may lose in some areas, the broader goal of the reforms is to create a better governance structure that benefits the entire country.
Sanwo-Olu expressed his positive outlook on the tax reforms, stressing that they aim to improve governance and benefit all citizens, not just one state or group. He urged the public to see the reforms as an opportunity for collective progress, requiring effort and discipline from everyone involved.
