Sanwo-Olu Advocates for Tax Reform to Encompass MSMEs and Wealthy Nigerians

At the 27th Annual Tax Conference of the Chartered Institute of Taxation of Nigeria held in Abuja, Lagos State Governor Babajide Sanwo-Olu, through his Special Adviser on Taxation and Revenue, Ogungbo Abdul-Kabir Opeyemi, emphasized the need to expand Nigeria’s tax net to cover MSMEs and high-net-worth individuals. This move aims to curb the growing menace of tax evasion and increase government revenue.

The governor pointed out a significant gap in the new tax reform bills awaiting constitutional approval, which exempts employees earning below N800,000 per annum from paying Personal Income Tax. “The clause(s) that puts a cap on income of employees at N800,000 per annum, before it can be subjected to Personal Income Tax, requires deliberate strategies to ensure taxpayers hiding in the MSME and start-up sectors are brought into the tax net and intensify effort on Direct Assessment drive for high net worth individuals to forestall the trend of tax evasion as witnessed across the country today,” he said.

Sanwo-Olu called on sub-national governments to not only embrace but lead the reform implementation, urging policy commitments to update laws, adopt technology, and invest in data analytics and human capital development. He cited Lagos’s success in generating N1 trillion internally in 2024, attributing it to digital reforms and a citizen-friendly tax system that encourages voluntary compliance.

The governor highlighted Lagos’s innovative use of AI chatbots, data analytics, and the Lagos Revenue Portal to improve tax administration. He also mentioned the N10 billion MSME funding partnership with the Bank of Industry and the Lagos State Electricity Law, which promotes energy self-sufficiency.

Sanwo-Olu concluded by stressing the importance of these fiscal reforms for Nigeria’s economic growth and the $1 trillion economy target, commending President Tinubu’s leadership.