Lagos State Drives Transparent Procurement as New Tax Law Takes Effect

The Lagos State Government has reaffirmed its commitment to transparency and accountability in public procurement as it begins aligning its operations with the Nigeria Tax Act 2025.

Speaking at the 2025 Lagos State Public Procurement Summit on Wednesday at Adeyemi Bero Auditorium, Alausa, Ikeja, the Commissioner for Finance and Chairman of the Lagos State Public Procurement Agency’s Governing Board, Abayomi Oluyomi, said the new tax framework is set to reshape how public institutions and vendors conduct business across the state.

Oluyomi highlighted that the summit’s theme, “Understanding the Impact of the New Tax Law on the Procurement of Goods, Works, and Services,” reflects Governor Babajide Sanwo-Olu’s drive to deepen transparency, accountability, and efficiency in procurement processes.

He emphasized that the new tax regime requires enhanced vendor due diligence, digital compliance through e-invoicing, and closer collaboration between procurement and finance departments across all ministries, departments, and agencies. Understanding the reforms, Oluyomi noted, is vital for preventing procurement delays, improving contract pricing, and ensuring long-term financial sustainability in the public sector.

The Director-General of the Lagos State Public Procurement Agency, Fatai Onafowote, described the summit as a platform for stakeholders to assess the tax law’s impact on public procurement. “Through digitalization, continuous stakeholder engagement, and strict compliance enforcement, we are building a system that promotes integrity, efficiency, and competitiveness,” he said. “This summit advances our goal of aligning procurement practices with evolving fiscal and tax realities, keeping Lagos at the forefront of governance and public financial management.”

Samuel Apata, Chairman of the House Committee on Procurement, reaffirmed the Lagos State House of Assembly’s legislative support for reforms that strengthen transparency and accountability in procurement.

Meanwhile, the Forum of Directors-General of Public Procurement Agencies called for a balanced implementation of the tax reforms to ensure they strengthen rather than disrupt procurement processes nationwide.

Last week, Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, stated that Small and Medium Enterprises (SMEs) would benefit from reduced taxes starting January 2026, when the new law takes effect. Oyedele, speaking at the 24th annual conference of Women in Management, Business, and Public Service at Eko Hotel, Victoria Island, described the reforms as people-centric and not designed to burden Nigerians.