Lagos State Governor Babajide Sanwo-Olu has renewed his call for special federal recognition for Lagos, alleging that political resistance in Abuja continues to hinder the state’s long-standing demand for a distinct constitutional status.
Sanwo-Olu made the remarks while speaking at the Financial Times Africa Summit in London over the weekend, where he discussed Lagos’s economic importance, its relationship with the Federal Government and the need for greater recognition of the responsibilities the state carries.
The governor acknowledged that President Bola Tinubu’s administration had supported Lagos through infrastructure projects and policy reforms, but argued that more could be done to address the state’s distinctive needs.
He explained that Lagos previously served as Nigeria’s federal capital before the seat of government moved to Abuja, adding that the state continues to accommodate people from different ethnic nationalities while functioning as the country’s leading commercial centre.
According to Sanwo-Olu, these historical and economic circumstances should be considered when the Federal Government makes decisions affecting the state and distributes national resources.
He said Lagos had repeatedly raised the question of special status but had encountered constitutional and political obstacles, while discussions with the Federal Government remained ongoing.
The governor’s demand is not new, as Lagos officials have previously argued that the state’s former status as the national capital and its continuing economic responsibilities justify a special arrangement.
In July 2025, the Federal Ministry of Information and National Orientation reported that Sanwo-Olu had renewed the request during a public hearing on the review of Nigeria’s 1999 Constitution, citing the burdens associated with Lagos’s former federal-territory status.
The latest comments therefore place the issue back in the national conversation over fiscal federalism, constitutional reform and how responsibilities and resources should be distributed among Nigeria’s states.
Sanwo-Olu also called for greater consideration for Lagos in the distribution of value-added tax revenue, arguing that substantial VAT collections originate from economic activities within the state.
He said the state was discussing ways to ensure that Lagos continued to receive a larger share of VAT revenue, although any change would depend on the applicable revenue-allocation framework and negotiations with relevant authorities.
VAT distribution has remained a subject of debate in Nigeria because states differ in their economic activity, population, consumption patterns and contributions to tax collection.
Supporters of Lagos’s position argue that the state’s concentration of businesses, commercial transactions and national infrastructure creates pressures that deserve recognition in fiscal arrangements.
However, determining how VAT revenue should be shared involves balancing the interests of the state where revenue is collected with the broader principles governing distribution among the federation’s constituent states.
Sanwo-Olu also highlighted federal infrastructure projects as examples of cooperation between Lagos and the Tinubu administration, particularly the Lagos section of the Lagos-Calabar Coastal Highway.
He said the approximately 70-kilometre Lagos section of the wider coastal road project was largely completed, describing the road as an important link for improving connectivity and supporting economic activity.
The governor also referenced the proposed Sokoto-Badagry Superhighway, arguing that its planned network of dams could support irrigation and agricultural production, potentially strengthening food supplies to Lagos and other areas.
On electricity, Sanwo-Olu pointed to reforms that have allowed states to take a more active role in regulating and developing their electricity markets.
He said Lagos had established its electricity regulatory commission and entered into about 22 public-private partnership agreements aimed at adding 2,000 megawatts of power generation capacity within three years.
The figures and projected capacity reflect the governor’s account of the state’s plans, with the eventual impact depending on project implementation, investment and the development of supporting electricity infrastructure.
Sanwo-Olu further expressed support for constitutional changes that would allow states to play a greater role in policing, arguing that improved local security arrangements could help create a more favourable environment for economic activity.
He said discussions on state policing were continuing and expressed hope that constitutional amendments would eventually provide a framework for states to participate more directly in security management.
The special-status proposal, VAT distribution debate and calls for state policing form part of a wider discussion about how Nigeria’s federal system should respond to differences in population, economic activity and public service demands across states.
For Lagos, the central question is whether its historical position, commercial importance and responsibilities can translate into a formal arrangement that provides additional recognition or fiscal benefits.
Any such arrangement would require a clear legal and constitutional basis, as well as agreement among the relevant political and institutional stakeholders.
Sanwo-Olu’s remarks highlight the state government’s intention to continue pursuing the issue while maintaining engagement with the Federal Government on infrastructure, taxation, electricity and security.