Chairman of the Presidential Fiscal Policy and Tax Reform Committee, Taiwo Oyedele, and Lagos State Governor, Babajide Sanwo-Olu, have stressed that Nigeria’s tax reforms will only succeed if state and local governments play an active role in implementation.
They made the remarks in Lagos at the Lagos State Tax Reform Summit themed “The Lagos Implementation Roadmap: From Reforms to Results.”
Delivering the keynote address, Oyedele said the effectiveness of the newly enacted tax laws would be determined largely outside Abuja, noting that subnational governments sit at the centre of revenue mobilisation, service delivery, and taxpayer engagement.
According to him, Nigeria’s fiscal sustainability depends on how well states and local governments harmonise tax administration, particularly in areas such as property taxation. He argued that while the federal government provides policy direction, execution rests squarely with subnational authorities.
Oyedele warned that fragmented and opaque tax practices across states and councils have undermined efficiency, increased compliance costs, and weakened public confidence. He called for a unified tax framework that promotes fairness, transparency, and predictability.
He added that Nigeria’s challenge is not the absence of taxes but poor administration of numerous levies, stressing that subnational governments carry significant responsibilities in infrastructure, education, healthcare, security, and environmental management, yet rely heavily on unstable federation allocations.
Property tax, he said, remains one of the most reliable revenue sources for states and councils when properly administered, noting that its effectiveness depends on accurate property data, fair valuation, transparent billing, and consistent enforcement.
In his remarks, Sanwo-Olu said the passage of tax reform laws at the federal level was only the first step, adding that outcomes would ultimately depend on how states and local governments implement the reforms.
He said Lagos State was positioning itself as a leading example by aligning policy with practice, strengthening intergovernmental cooperation, and maintaining engagement with the private sector and professional bodies.
“Our priority is implementation that delivers tangible value to residents and businesses,” the governor said, reaffirming the state’s commitment to a fair, transparent, and growth-oriented tax system.
Lagos State Commissioner for Finance, Abayomi Oluyomi, said the government’s tax strategy was focused on building public trust, encouraging voluntary compliance, and creating a fiscal environment that supports economic growth.
Also speaking, Executive Chairman of the Lagos Internal Revenue Service, Ayodele Subair, described recent tax reforms, including the Nigeria Tax Act 2025, as a turning point for subnational governments. He said the reforms clarified taxing powers and administrative responsibilities across the three tiers of government.
Chairman of Ibeju-Lekki Local Government, Abdullahi Sesan Olowa, said local councils in Lagos had recognised the need for closer collaboration with the state government, noting that innovative revenue strategies at the grassroots level would strengthen internally generated revenue and fiscal cooperation.
