President Bola Ahmed Tinubu’s administration has clarified that the proposed tax reform bill is designed to benefit all regions in Nigeria, including the North, and is not intended to marginalize any state. This assurance was given by Bayo Onanuga, Tinubu’s Special Adviser on Information and Strategy, following concerns from the Northern Governors’ Forum regarding a new VAT derivation model in the bill currently before the National Assembly.
During their recent meeting on October 28, the Northern Governors’ Forum, led by Gombe State’s Governor Muhammed Inuwa Yahaya, voiced their opposition to the derivation-based VAT distribution model. The forum’s meeting also included traditional rulers, with the Sultan of Sokoto, Muhammadu Sa’ad Abubakar III, present.
In response, Tinubu’s spokesperson explained that the tax reforms aim to streamline and modernize Nigeria’s tax system, without increasing existing tax rates. Instead, they intend to eliminate redundant taxes and simplify compliance for businesses and individuals across the nation.
Key provisions of the reform include a unified structure for Company Income Tax, Personal Income Tax, and VAT, along with the establishment of a Joint Revenue Board and an Office of Tax Ombudsman to resolve taxpayer complaints. Notably, the bill proposes that VAT distribution be based on the location of goods and services consumption rather than where taxes are remitted. This change seeks to ensure that all states, including those in the North that produce VAT-exempt goods, receive a fairer share of revenue.
Emphasizing the reforms’ potential to drive economic growth and job creation, Onanuga highlighted that they would streamline tax administration and promote cooperation between federal, state, and local authorities. He stressed that these changes are intended to benefit all Nigerians, supporting national development and equity in revenue distribution.
News Editor