Sanwo-Olu Urges Sub-Nationals’ Commitment to Tax Reforms for Nigeria’s $1 Trillion Economy Aspiration

• Sanwo-Olu emphasized the importance of sub-nationals’ commitment to tax reform
• The governor stressed the importance of sub-nationals embracing the imminent tax law 
• Taiwo Oyedele, addressed the deep-rooted inefficiencies in Nigeria’s tax system. 

Lagos State Governor, Babajide Sanwo-Olu, has emphasized the importance of sub-nationals’ commitment to tax reform in achieving Nigeria’s goal of becoming a $1 trillion economy.

Eko Hot Blog reports that at the 27th Annual Tax Conference of the Chartered Institute of Taxation of Nigeria (CITN), Sanwo-Olu called for policy commitment by states to modify laws where necessary and invest in data analytics, technological innovation, and human capital development.

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Despite the country’s potential, Nigeria is currently collecting only 30 per cent of its potential tax revenue, leaving a 70 per cent gap. This highlights the urgent need for broader inclusion of Micro, Small and Medium Enterprises and high-net-worth individuals in the tax net to address tax evasion and boost revenue collection.

Sanwo-Olu stressed the importance of sub-nationals embracing the imminent tax law and leading the implementation drive to enhance the country’s fiscal resilience and growth.

He stated: “As we await constitutional approvals to the new tax reform bills, and earnestly looking forward to their full implementation, to my colleagues (leadership of sub-nationals), the clauses that puts a cap on income of employees at N800,000 yearly, before it can be subjected to Personal Income Tax (PIT), requires deliberate strategies to ensure taxpayers hiding under the Micro, Small and Medium Enterprises (MSMEs) and start-up sectors are brought into the tax net and intensify effort on direct assessment drive for high net worth individuals to forestall tax evasion as witnessed across the country today.”

“It is imperative that, as sub-nationals, we not only embrace but also lead the implementation drive. A policy commitment by sub-nationals to deliberately modify state laws where necessary, investment in data analytics, technological innovation, and human capital development is essential.”

Sanwo-Olu expressed confidence in the potential of strong tax culture reforms to drive sustainable economic progress and inclusive prosperity in Nigeria.

At the conference, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, addressed the deep-rooted inefficiencies in Nigeria’s tax system.

He highlighted policy loopholes, widespread abuse of waivers and incentives, and weak enforcement as major factors contributing to significant tax losses.

Oyedele advocated for the implementation of advanced tax technology to combat systemic leakages through real-time monitoring and intelligent tracking of inventories, sales, and discrepancies. He noted that these technologies could help uncover tax evasion and address the injustices faced by overburdened Nigerians due to tax manipulation.

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Lamenting the systemic failures that allow a minority to benefit while the majority suffer, Oyedele called for a more equitable and transparent tax system in Nigeria.

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