President Bola Tinubu has called on the National Assembly to fast-track the passage of the Tax Reform Bills, emphasizing the urgency of unlocking the economic benefits embedded in the proposed reforms.
The appeal was disclosed in a statement on January 17, 2024, by Bayo Onanuga, the Special Adviser to the President on Information and Strategy.
President Tinubu lauded the Nigeria Governors’ Forum (NGF) for their unanimous endorsement of the four Tax Reform Bills currently before the National Assembly. He described the endorsement as a demonstration of bold leadership and a commitment to national unity.
“Thursday’s consultation between the Nigeria Governors’ Forum and the Presidential Committee on Tax and Fiscal Policy highlights the power of constructive dialogue in resolving differences,” the President said.
The President praised Kwara State Governor and NGF Chairman, AbdulRahman AbdulRazaq, for mobilizing governors to support the bills, and extended commendations to the Progressive Governors Forum, Northern Governors Forum, and other groups for their bipartisan approach.
Tinubu emphasized that the proposed reforms are designed to be “pro-poor,” aiming to modernize Nigeria’s outdated tax laws, improve economic competitiveness, and attract both local and foreign investments.
“The federal government is committed to fostering national interests, driving economic growth, and enhancing fiscal stability through these reforms,” the statement added.
As part of the tax reform process, the NGF endorsed a revised Value Added Tax (VAT) sharing formula: 50% based on equality, 30% based on derivation, and 20% based on population. The NGF also ruled out increasing the VAT rate or reducing Corporate Income Tax (CIT) at this time.
The decision follows deliberations between the NGF and the Presidential Tax Reform Committee, chaired by Taiwo Oyedele. Tinubu urged all stakeholders, including those with reservations, to engage constructively in the legislative process to ensure equitable outcomes.
Earlier concerns, particularly from the Northern Governors’ Forum, about a derivation-based VAT-sharing model have been addressed through consultations. The Northern Governors’ Forum, led by Gombe State Governor Muhammed Inuwa Yahaya, initially opposed the model, arguing it could disadvantage the North.
The President and the tax reform committee assured stakeholders of equitable outcomes, reiterating the need for reforms that benefit all geopolitical zones.
President Tinubu reaffirmed his administration’s commitment to partnering with governors to promote economic stability, peace, and national harmony. He urged the National Assembly to expedite the legislative process to enable the country to harness the benefits of the reforms promptly.
“Stakeholders with suggestions or ideas are encouraged to engage with the ongoing legislative process to ensure an inclusive and effective tax system,” the President said.
