How Lagos is preparing for Tinubu’s new tax regime – Sanwo-OLu

Governor Babajide Sanwo-Olu has said the success of Nigeria’s ongoing tax reforms will depend largely on effective implementation at the sub-national level, stressing that the new tax law is designed to strengthen states’ revenue capacity while protecting low-income earners.

Sanwo-Olu spoke on Tuesday at the Tax Reform Summit organised by the Lagos State Government, held at the Marriott Hotel, Ikeja. The two-day summit, themed “Tax Reform Summit: The Lagos Implementation Road Map,” was jointly hosted by the Office of the Special Adviser on Taxation and Revenue and the State Treasury Office.

The governor disclosed that Lagos State has begun readjusting its revenue portal in preparation for the harmonisation of the new tax law expected to take effect in January, adding that the state is ready to align policy with practice and strengthen inter-governmental collaboration.

He said Lagos remains fully aligned with the tax reform agenda of President Bola Ahmed Tinubu, noting that the reforms aim to simplify the tax regime by reducing multiplicity, strengthening administration and modernising revenue collection through technology.

Dismissing criticisms that the reforms would burden the poor, Sanwo-Olu said the new tax framework would protect small businesses, ensure that the wealthy meet their obligations, block leakages and expand the tax net.

“The new tax laws initiated by Mr President are fundamentally designed to create a system that supports economic growth at the sub-national level while ensuring fairness, predictability and improved compliance,” he said. “Contrary to baseless assumptions, the new tax law will protect small businesses and ensure that the rich fulfil their obligations to society.”

The governor added that Lagos’ approach to public finance—anchored on simplicity, transparency, digital efficiency and fairness—positions the state as a leading sub-national player in the implementation of the reforms.

Also speaking, Commissioner for Finance, Mr Abayomi Oluyomi, said the new tax framework presents both a challenge and an opportunity to build a more efficient and equitable tax system capable of sustaining Lagos’ economic growth. He emphasised the need for synergy among the state’s 57 local governments and data-driven implementation.

“Property enumeration, digital mapping and integration of the Payer ID with the National TIN are practical steps we must master,” Oluyomi said, adding that transparent, data-backed property valuation is key to unlocking revenue potential.

Guest speaker and Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, said quality and accurate data would be central to the success of the new tax regime. He explained that while the Federal Government would provide policy direction and harmonisation, states and local governments would handle implementation and administration.

Oyedele noted that Nigeria currently has fewer than 10 million active taxpayers nationwide, adding that Lagos alone should be able to attain that figure given its working population.

Chairman of the Lagos Inland Revenue Service, Mr Ayodele Subair, said the agency has concluded plans for a targeted awareness programme to educate residents on the new tax law, alongside a structured reform implementation programme to ensure coordinated execution, digital alignment and capacity building.