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The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has underscored the importance of transforming tax administration at the sub-national level, describing it as critical to Nigeria’s economic sustainability.
Oyedele made the remarks while delivering a keynote address at the Tax Reform Summit themed “The Lagos Implementation Roadmap: From Reforms to Results.” He noted that while states and local governments play a central role in delivering services that improve citizens’ welfare, they are often financially constrained in meeting these obligations.
According to him, the ongoing tax reforms are designed to unlock revenue generation and enhance efficiency at the state level. He observed that Nigeria’s fiscal challenge is not the absence of taxes but the proliferation of inefficient and poorly administered ones.
“States and local governments shoulder significant responsibilities, including infrastructure development, education, healthcare, security, environmental management, and other community services,” Oyedele said. “Yet, their revenue base remains narrow, volatile, and overly dependent on federal transfers. This imbalance is unsustainable.”
He explained that the new tax reform laws are deliberately structured to expand revenue opportunities for sub-national governments, adding that transforming sub-national tax systems is not optional but essential to the country’s economic survival.
Governor Babajide Sanwo-Olu of Lagos State also reaffirmed his administration’s readiness to align with the new tax reforms, stressing that the changes are aimed at fostering strong economic growth while promoting fairness, predictability, and improved compliance.
“Lagos State operates within a national fiscal framework, and we are fully aligned with the ongoing tax reform agenda of President Bola Tinubu,” Sanwo-Olu said. “The reforms seek to simplify tax laws, reduce multiplicity, strengthen administration, and modernise revenue collection through technology and data-driven processes.”
The convener of the summit and Special Adviser to the governor on taxation and revenue, Abdul-Kabir Opeyemi, noted that the reforms provide a solid national framework for states to innovate and lead.
He added, “Lagos State fully aligns with this vision, and this summit represents part of our structured response to the national call for tax reform.”
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