Lagos State Governor Babajide Sanwo-Olu has defended President Bola Tinubu’s tax reforms.

This is as he says the new tax law is designed to boost sub-national governments’ revenue capacity while easing the burden on the poor.

Sanwo-Olu spoke at a two-day Tax Reform Summit organised by the Lagos State Government in Ikeja, where he said the success of the reform would depend largely on how effectively states implement the new framework.

This is according to a Tuesday statement, titled “New Tax Law Designed to Boost Sub National Govts’ Revenue Needs,” and signed by the Special Adviser to the Governor on Media and Publicity, Mr. Gbeyoga Akosile.

“The success of the tax reform journey will depend not only on legislation at the federal level, but on effective implementation at the state level,” the governor said, adding that Lagos was already repositioning itself ahead of the law’s expected take-off in January.

He disclosed that Lagos had begun readjusting its revenue portal in readiness for the harmonisation of the new tax law, stressing that the state would “play its leadership role by aligning policy with practice, strengthening inter-governmental collaboration, and maintaining continuous engagement with the private sector and professional bodies.”

Sanwo-Olu dismissed criticisms that the reforms would worsen inequality, insisting that the framework was aimed at simplifying Nigeria’s tax system and improving fairness.

“The new tax laws initiated by Mr. President are fundamentally designed to create a system that supports economic growth at sub national level while ensuring fairness, predictability and improved compliance.

“Contrary to its critics’ baseless assumptions, the new tax law will protect small businesses and ensure that the rich fulfill their obligations to the society. It will block leakages and expand the tax net,” he said.

The governor urged Nigerians to support the reforms rather than oppose them, describing the initiative as bold and necessary.

“Instead of making futile attempts to undermine the progress, we must give kudos to President Tinubu for taking the bold steps he is taking, considering the fact that the pains are gradually giving way for the gains.

“We will welcome a system that will reduce multiplicity, strengthen administration and modernise revenue collection through technology. Only an audacious, confident and experienced leader can make these bold reforms,” Sanwo-Olu said.

The governor said the national tax reforms aligned with Lagos State’s long-standing approach to public finance, noting that the state faced “unique development pressures that demand sustainable, internally-driven revenue solutions.”

According to him, the summit signalled Lagos’ readiness to move from policy debates to execution.

“Lagos State is positioning itself as a leading sub-national in the implementation of these reforms. Our focus is not merely compliance with new frameworks, but effective execution that delivers real value to citizens and businesses,” he said.

Earlier, Commissioner for Finance, Mr. Abayomi Oluyomi, said the new tax framework presented Lagos with both a challenge and an opportunity to deepen fiscal innovation.

“The success of the tax reform is intrinsically tied to the synergy between the State and our 57 Local Governments. We must harmonise our efforts, eliminate duplication, and present a unified, taxpayer-friendly front. We must ensure data-driven implementation.

He added that, “Property enumeration, digital mapping, and the integration of the Payer ID with the National TIN are not academic exercises. They are practical, technical steps we must master,” Oluyomi said.

Guest speaker and Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, said quality data would be critical to the success of the new tax regime.

Under the framework, he explained, the Federal Government would provide policy direction and harmonisation, while states and local governments would handle implementation, administration and service delivery.

Oyedele said standardisation would move Nigeria away from “fragmented, discretionary and opaque tax practices,” adding that Lagos must rise to the challenge and pilot solutions for other states.

“In Nigeria today, the number of active tax paying individuals is under 10 million for the whole country. If our people are committed to their tax obligations, that is the number we should have for Lagos State alone based on the population of active workers,” he said.

Also speaking, Chairman of the Lagos Inland Revenue Service, Mr. Ayodele Subair, said the agency had finalised a targeted awareness programme to educate residents on the new tax law.

“A structured reform implementation programme was subsequently established to guide coordinated execution, digital alignment and institutional capacity building,” Subair said, adding that sensitisation had been phased to align with national guidance from the Presidential Committee on Fiscal Policy and Tax Reforms.

The summit, hosted jointly by the Office of the Special Adviser on Taxation and Revenue and the State Treasury Office, was themed “Tax Reform Summit: The Lagos Implementation Road Map.”