LASG promises procurement transparency under new tax regime

The Lagos State Government has reaffirmed its commitment to transparent and accountable procurement practices as it begins aligning with the Nigeria Tax Act 2025.

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

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

He explained 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.

According to him, understanding the reforms is crucial for preventing procurement delays, improving contract pricing accuracy, and ensuring long-term financial sustainability in the public sector.

The Director-General of the Lagos State Public Procurement Agency, Fatai Onafowote, said the summit provided a platform for stakeholders to assess the implications of the new tax law on public procurement.

Onafowote said, “Through the digitalisation of procurement processes, continuous stakeholder engagement, and strict enforcement of compliance, we are building a system that promotes integrity, efficiency, and competitiveness.

This summit is another step forward in aligning our procurement practices with evolving fiscal and tax realities — ensuring that Lagos continues to set the pace in governance and public financial management.”

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

Also, the Forum of Directors-General of Public Procurement Agencies called for a balanced implementation of the tax reform to ensure it strengthens rather than disrupts procurement processes nationwide.

Last week, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, said Small and Medium Enterprises would pay less tax beginning January 2026, when the new law takes effect.

Oyedele, speaking at the 24th annual conference of Women in Management, Business, and Public Service held at the Eko Hotel, Victoria Island, Lagos, said the reforms are people-centric and not designed to burden Nigerians.

culled from punch