Oyedele, Sanwo-Olu: Successful Tax Reform Implementation Depends on States, LGs’ Collaboration

James Emejo in Abuja and Dike Onwuamaeze in Lagos

The Chairman, Presidential Fiscal Policy and Tax Reform Committee, Mr. Taiwo Oyedele, and the Governor of Lagos State, Mr. Babajide Sanwo-Olu, have identified effective collaboration at the subnational levels as key to successful implementation of Nigeria’s tax reforms laws.

They stated this yesterday in Lagos, in their various speeches at the Lagos State’s Tax Reform Summit with the theme “The Lagos Implementation Roadmap: From Reforms to Results.”

Oyedele, in his keynote address, focused on the roles of local and state governments in the implementation of the new tax laws and the need for a standard, fair, and transparent valuation system for property tax. 

He said: “The future of Nigeria’s fiscal sustainability will be decided not only in Abuja, but in states and local governments across the country.

“If we get subnational taxation right, especially harmonisation of taxes and collection, including property taxation, we create a stable, fair, and predictable revenue bases that support growth, equity, and inclusive development.” 

He added: “The federal government provides policy direction and harmonisation; the states and local governments provide implementation, administration, and service delivery.”

He, therefore, said, “we must move away from fragmented, discretionary, and opaque tax practices to a harmonised tax system that reduces compliance costs, improves taxpayer confidence, and limits abuse and arbitrariness.”

Oyedele pointed out that, “Nigeria’s fiscal challenge is not that we do not have adequate taxes but that there are too many taxes that we administer inefficiently,” adding that “states and local governments carry the heaviest responsibilities for infrastructure, education and health, security and environmental management and other community services, yet their revenue base remained narrow, volatile, and overly dependent on federation transfers, is a mismatch and not sustainable.

“Subnational tax transformation is, therefore, not just a nice-to-have. It is central to Nigeria’s economic survival.”

Oyedele identified property taxation as one of the most stable revenue sources available to states and local governments.

“When done properly, property tax is difficult to evade, grows with urban development and aligns payment with visible public services.

“However, its success depends on proper property enumeration, accurate valuation, transparent billing and predictable enforcement,” he said.

In his address, Sanwo-Olu said the success of Nigeria’s tax reform would depend not only on legislation at the federal level but on effective implementation at the sub-national levels.

He added: “No matter how well it is done at the federal, it is its effective implementation at the sub-national level that will make it a success.

“So, Lagos State is ready to play its leadership role by aligning policy with practice and strengthening its inter-governmental collaboration and maintaining a continuous engagement with the private sector and professional bodies.”

He further said Lagos State was positioning itself as a leading sub-national in the implementation of this tax reform.

“Our focus is on effective implementation that will deliver real value for our state and our people,” he added.

The governor assured all stakeholders that Lagos State remained committed “to a fair, transparent and growth friendly tax system that support sustainable development and shared prosperity.

“Together we can build a tax system that works for government and work for businesses and certainly will work for its citizens.”

The Lagos State Commissioner of Finance, Mr. Abayomi Oluyomi, said the state government’s goal was beyond mere revenue collection and was about earning public trust, fostering voluntary compliance and creating fiscal ecosystem where every business and citizen could thrive.

The Executive Chairman, Lagos Internal Revenue Service (LIRS), Mr. Ayodele Subair, in his presentation titled “The Lagos State’s Tax Story for 2026,” said that the enactment of the Nigeria Tax Act 2025 and related reform laws alongside recent constitutional clarifications represented a defining moment for sub-national governments.

Subair said these reforms provided clearer delineation of taxing powers, revenue lines and administrative responsibilities across federal, state and local government tiers.

He said: “For Lagos State, these reforms are not merely legal adjustments; they are an opportunity to recalibrate revenue administration, address long-standing inefficiencies and strengthen fiscal sustainability in alignment with the state’s development ambitions.”

The Chairman of Ibeju Lekki Local Government Area, Mr. Abdullahi Sesan Olowa, said the local governments in the state have realised that there must be strong collaboration between the local and state governments.

Olowa, who is also the chairman of the conference of local governments/councils chairmen in Lagos State, said: “We have observed that innovatively as local governments we will be able to drive higher internally generated revenue, which will drive a very strong collaboration between the local and state governments.”