In an open letter to the governors of Northern Nigeria, Aderonke, Technical Assistant to the Executive Chairman of the Federal Inland Revenue Service (FIRS), advocates for embracing the recent Tax Reform Bill, highlighting the long-term benefits it could bring to the North and the nation.
Expressing shared aspirations for a prosperous and united Nigeria, she addresses concerns about the bill’s shift to a derivation-based VAT distribution model and outlines how the reform can fuel economic growth in Northern states.
According to Dr. Zacch Adedeji, Executive Chairman of FIRS, the reform aims not to impose new taxes but to streamline existing ones, targeting “prosperity, not poverty.” By focusing on reducing tax burdens for small businesses and ensuring a fair contribution from larger entities, the reform promises simplicity and efficiency for businesses, including farmers and local traders.
Aderonke explains that under the derivation-based VAT model, funds generated from goods and services produced in the North would be directly reinvested into local infrastructure such as roads, schools, and hospitals. This approach, she emphasizes, could stimulate local business, attract industries, and create sustained growth within the region. “It’s an opportunity for states to benefit directly from their economic activities, fostering development in a way that aligns with the strengths and resources of each state,” she writes.
Historically, VAT revenue has been centralized, but this reform presents an opportunity to ensure that states retain and reinvest a portion of their generated revenue, encouraging a self-sufficient North. Aderonke notes that the model would inspire the North to harness its comparative advantages and focus on regional development, building economic resilience and independence.
The letter also addresses the reform’s commitment to transparency and accountability, promising taxpayers greater visibility into how their contributions are used. Dr. Adedeji emphasizes that the reform “creates a fairer, simpler tax system that respects and values taxpayers’ contributions.”
Highlighting the alignment with President Bola Tinubu’s Renewed Hope Agenda, Aderonke calls upon Northern governors to support the reform, stressing that their leadership could help build a unified and prosperous Nigeria. The Tax Reform Bill, she concludes, offers a critical step toward ensuring that all regions are empowered and valued within a fair and equitable system.
