Potential candidates for the 2027 Lagos State governorship, including former Deputy Governor Babajide Hamzat, have clashed over the state’s approach to taxation, job creation, and urban infrastructure during a BusinessDay town hall event.
The debate focused on the tension between the state’s need for aggressive revenue generation and the growing burden of multiple taxation on small and medium enterprises (SMEs) in Nigeria’s commercial nerve centre.
Opposition candidates argued that the current fiscal regime is stifling entrepreneurship, demanding greater accountability in how public funds are utilised to improve basic services. They contended that the state’s reliance on high tax yields without a corresponding increase in the quality of infrastructure has hindered private sector growth.
The All Progressives Congress (APC) representatives defended the existing reforms, asserting that the current revenue strategies are essential for funding the massive infrastructure projects required to sustain a megacity of over 20 million people.
Hamzat and other rivals pledged to offer better deals for residents, focusing on a shift toward more sustainable economic models that balance state revenue requirements with the survival of local businesses.
Taxation and the Small Business Climate in Lagos
Central to the discussion was the operational framework of the Lagos State Internal Revenue Service (LIRS). Critics at the town hall highlighted that while Lagos generates the highest internally generated revenue (IGR) of any Nigerian state, the distribution of these funds into tangible community assets remains uneven.
The candidates discussed the necessity of simplifying the tax code to prevent the proliferation of illegal levies, which often act as a hidden tax on traders and manufacturers. Several aspirants proposed a digital overhaul of the collection system to ensure transparency and reduce leakages.
Beyond fiscal policy, the debate shifted to the acute shortage of affordable housing and the decay of primary healthcare facilities. The candidates acknowledged that these gaps create an economic drag, as workers spend a disproportionate amount of their income on rent and private health services.
On employment, the aspirants clashed over the effectiveness of current vocational training schemes. While the ruling party pointed to existing job creation initiatives, the opposition argued that these programmes are often ceremonial and fail to address the structural unemployment facing Lagos youth.
The discussion also touched upon women’s inclusion in the state’s economic planning, with several candidates promising to implement specific credit facilities and grants to support female-led startups and SMEs.
Data from the National Bureau of Statistics frequently highlights Lagos as a primary driver of national GDP, making the state’s regulatory and tax environment a matter of national economic significance.
The event concluded with a consensus among the rivals that the 2027 contest will be decided by the ability of candidates to present a viable roadmap for reducing the cost of living while maintaining the state’s investment attractiveness.
The next phase of the political cycle is expected to see these candidates transition from general pledges to detailed policy documents, as they seek to secure the backing of the state’s influential business community and professional associations.
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