Gov. Babajide Sanwo-Olu of Lagos State has said that the success of Nigeria’s ongoing tax reforms will depend largely on effective implementation at the sub-national level, adding that Lagos is ready to play a leadership role in the process.
Sanwo-Olu made this known on Tuesday at a tax reform summit held in Lagos, themed “From Reforms to Results,” where stakeholders examined practical steps for translating policy initiatives into measurable outcomes.
The governor said Lagos, widely regarded as a trailblazer in fiscal innovation and regulatory administration, could no longer rely on past achievements in the face of rapid population growth, expanding economic activities and rising competition.
“Lagos cannot rest on its past glory. In a rapidly changing economic environment, the question before us is not whether to adapt, but how to adapt most effectively,” he said.
According to him, the tax reforms are not merely aimed at increasing revenue, but at building public trust, encouraging voluntary compliance and creating a fiscal ecosystem where citizens and businesses can thrive.
“Taxation is a social contract. When government is responsible, practical and responsive, people are more willing to comply because they can see their contributions translated into infrastructure, social services and improved quality of life,” Sanwo-Olu said.
He added that Lagos would continue to deploy tax revenues towards transport infrastructure, education, security, environmental resilience and targeted social protection programmes.
The governor noted that the state consistently achieved over 90 per cent budget implementation, with capital expenditure outweighing recurrent spending.
“As national reforms place emphasis on consumption-based taxation, data integration and system efficiency, Lagos is positioning itself to ensure that implementation delivers real value to our people and our economy,” he said.
Sanwo-Olu dismissed claims that the reforms would impose additional burdens on the poor, saying the objective was to protect vulnerable groups while strengthening compliance among higher-income earners.
“Only a small percentage currently bears the tax burden. These reforms are designed to broaden the base, protect small businesses and ensure equity across the system,” he said.
Also speaking, the governor’s Special Adviser on Revenue and Taxation, Mr Abdulkabir Ogungbo, said the summit marked another milestone in aligning stakeholders with the Presidential Committee on Tax Reforms.
According to him, the committee is committed to unveiling strategies for integrating revenue administration frameworks in a renewed effort to establish an innovative, intentional and transparent system that would address multiple taxation.
Earlier, the state Commissioner for Finance, Mr Oluyomi Abayomi, described the tax reform agenda as timely and critical to sustaining Lagos’ growth trajectory.
He said the Lagos State Ministry of Finance was ready to provide coordination and leadership to translate deliberations from the summit into executable plans.
“We have moved beyond theory. The hard work now is implementation, and the ministry is prepared to drive this process in collaboration with other tiers of government, the private sector and professionals,” Abayomi said.
He expressed confidence that sustained collaboration and data-driven approaches would enable Lagos to continue leading in implementing reforms that align with national objectives while reflecting the state’s unique economic realities.