In a concerted effort to bolster internally generated revenue (IGR), governors from Lagos, Sokoto, and Borno States have advocated for a transparent tax framework during the ongoing 26th Annual Tax Conference in Abuja. Emphasizing the theme of ‘Sustainable Tax Culture and Economic Roadmap for Nation Building,’ these leaders highlighted the pivotal role of an open and efficient tax administration in fostering trust and voluntary compliance among taxpayers.
Representing Lagos State, Governor Babajide Sanwo-Olu, through his Special Adviser on Taxation and Revenue, Mr. Abdul-Kabir Ogungbo, underscored the imperative of recognizing the significance of taxes in nation-building. He emphasized the importance of a tax system that not only encourages investment and job creation but also supports economic diversification, which is crucial for Nigeria’s long-term growth. He stated “Increasing IGR through a transparent tax system is crucial for our nation’s development, We must all understand the crucial role taxes play in building a better Nigeria for ourselves and for generations to come.
“The theme also emphasizes the necessity of a clear economic roadmap that takes into account the structure of our developmental ideologies, which are intended to give the government the means to meet the social needs of its constituents. As a result, we require a tax structure that encourages investment, the creation of jobs, and economic diversification.
“In order to support a business climate that supports the growth of our economy, we must look at creative ways to broaden the tax base. The good news is that Nigeria is moving in the right way already. It is admirable that there have been recent attempts to simplify state-level taxes and to integrate the expanding remote workforce into the tax system.”
Meanwhile, Governor Babagana Zulum of Borno State, voiced concerns over inefficiencies and corruption within the current tax system, advocating for sweeping reforms to address these issues. He particularly criticized the political shielding of tax evaders and called for a crackdown on corruption, both in the oil sector and governance structures.
Echoing similar sentiments, Governor Ahmad Sokoto of Sokoto State highlighted the pressing need to explore innovative approaches to revenue generation, given the economic and fiscal challenges facing governments at all levels. Stressing the importance of taxation as a key resource mobilization tool, he pledged to collaborate with the Chartered Institute of Taxation of Nigeria (CITN) to enhance IGR in Sokoto State.
Former Governor of Ogun State, Senator Ibikunle Amosun, emphasized the urgency of prioritizing IGR growth over-reliance on borrowing to fund government budgets. He cautioned against excessive borrowing amid the prevailing economic hardships, stressing the need for sustainable fiscal policies to meet the needs of Nigeria’s burgeoning population. “Our country, its constituent states, and local governments are facing immense challenges in providing basic amenities that will enhance the quality of life for their throngs of people, acceptable living standards, jobs for the increasing number of young people, infrastructure, and employment opportunities.”
On the technological front, Mr. Samuel Agbeluyi, President and Chairman of the CITN Council, emphasized the critical role of technology in revenue tracking, particularly at the subnational level. He advocated for investments in technology and human capital to harness digital platforms, including cryptocurrency, to optimize government revenue streams.
Despite these calls for tax reforms and revenue enhancements, the Presidential Fiscal Policy and Tax Reforms Committee reiterated its stance against proposing tax hikes, underscoring the importance of balancing revenue generation with socio-economic considerations.
