Sub-national tax transformation crucial for economic growth – Oyedele

The Chairman, Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele has stressed the need for the transformation of tax administration at the sub-national levels, saying it is crucial to the survival of the country’s economy. Oyedele stated this yesterday while delivering his keynote address at the Tax Reform Summit, themed: ‘The Lagos Implementation Roadmap; […]

The Chairman, Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele has stressed the need for the transformation of tax administration at the sub-national levels, saying it is crucial to the survival of the country’s economy.

Oyedele stated this yesterday while delivering his keynote address at the Tax Reform Summit, themed: ‘The Lagos Implementation Roadmap; from Reforms to Results’.

He noted that sub-nationals play pivotal roles in discharging responsibilities aimed at improving the welfare of the citizens, but added that they are financially constrained to meet various needs.

 

He added that the new tax reform is aimed at unlocking revenue generation to improve state governments’ efficiencies.

“Nigeria’s fiscal challenge is not that we do not have adequate taxes, in fact, there are too many of them and we are instantly inefficient.

“States and local governments carry the previous responsibilities for infrastructure, education and health, security and environmental management and other community services.

“Yet, their revenue base remains narrow, volatile, and overly dependent on federal transfers. This mismatch is not sustainable, that is why you see the new tax reform laws.

 

 

 

“They have been a very intentional way of ensuring that sub-nationals have more revenues. Sub-national tax transformation is therefore not just a tax to have, it is central to Nigeria’s economic survival,” he said.

 

 

 

Governor Babajide Sanwo-Olu expressed his administration’s preparedness to align with the new tax reforms.

 

 

 

He stressed that the reforms were designed to create a system that will support strong economic growth while ensuring that there’s 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 our dear President, President Bola Tinubu, who seeks to simplify the tax law, reduce its multiplicity, plan to strengthen administration, and

 

modernise revenue collection through technology and data gathering,” he said.

 

 

 

The convener who doubles as the Special Adviser to the governor on taxation and revenue, Abdul-Kabir Opeyemi added that the reforms provide a strong national framework upon which the state can innovate, adapt, and lead.

 

 

 

“Lagos State fully aligns with this vision, and this summit represents part of our structured response to that national call for reform,” he said.