Lagos State Governor Babajide Sanwo-Olu has assured residents that the federal tax reforms will neither burden the poor nor favour the wealthy, emphasizing that the changes aim to establish a fairer and more efficient tax system.
He made the remarks on Tuesday at the Lagos Tax Reform Summit in Ikeja.
The new Tax Act is scheduled to take effect on Thursday, January 1, 2026, though some stakeholders have urged a pause, citing concerns that certain provisions in the gazetted version of the law differ from what was passed by the National Assembly.
Sanwo-Olu acknowledged citizens’ concerns about the Act but clarified that the reform is designed to safeguard small businesses.
“I know some people fear that these reforms will hurt the poor and favour the wealthy. That is simply not true. The goal of the new tax law is simple. Protect small businesses, make sure the wealthy meet their obligations, close revenue leakages and bring more people fairly into the tax system,” he said.
He praised President Bola Tinubu for leading the reforms, calling them bold measures to repair a system that had long been flawed.
“These changes are not easy. But the hard part is already giving way to real progress. I commend President Tinubu for having the courage to take these steps. It takes experience and confidence to fix a system that has been broken for too long,” the governor noted.
Sanwo-Olu reiterated Lagos State’s full support for the Federal Government’s tax reform framework, pledging complete cooperation in establishing a harmonized and efficient tax system that fosters both growth and fairness.
“The reforms championed by the Federal Government are not about increasing tax burdens but about fixing inefficiencies, eliminating multiple taxation and building trust in the system.
Lagos will continue to work closely with federal authorities to ensure a tax environment that is fair, predictable and beneficial to all,” he said.
The summit, themed “The Lagos Implementation Road Map – From Reforms to Results: Creating a Tax Environment that Works for All,” was jointly organized by the Office of the Special Adviser on Taxation and Revenue and the State Treasury Office.
Sanwo-Olu highlighted that the reforms would curb revenue leakages, broaden the tax base, eliminate duplication in tax collection, and enhance accountability, all while safeguarding small businesses and vulnerable citizens.
He emphasized Lagos State’s commitment to turning federal tax policies into practical, people-centered results at the sub-national level.
