Politics
New Tax Reforms Will Benefit All Regions Equally – Tinubu
The Presidency has clarified that the proposed tax reforms, including changes to Nigeria’s Value-Added Tax (VAT) distribution model, are intended to benefit all regions equally.
This response follows opposition from the Northern Governors’ Forum, a coalition of governors from Nigeria’s 19 northern states, who expressed concern over aspects of the reform at a meeting held on October 28.
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Bayo Onanuga, Special Adviser to the President on Information and Strategy, disclosed this in a statement released on Thursday.
Led by Governor Muhammed Inuwa Yahaya of Gombe State, the governors, supported by traditional rulers like the Sultan of Sokoto, His Eminence Muhammadu Sa’ad Abubakar III, cautioned that the proposed VAT model might disadvantage their states.
The statement reads, “While we commend the Governors and traditional rulers for supporting President Bola Tinubu over the success recorded in addressing the country’s security challenges, we consider it necessary to address the misunderstandings and misgivings around the tax reform already embarked upon by the administration.
“President Tinubu and the Federal Executive Council recently endorsed new policy initiatives aimed at streamlining Nigeria’s tax administration processes, enhancing efficiency and eliminating redundancies across the nation’s tax operations.
“These reforms emerged after an extensive review of existing tax laws. The National Assembly is considering four executive bills designed to transform and modernise Nigeria’s tax landscape.
“First is the Nigeria Tax Bill, which aims to eliminate unintended multiple taxation and make Nigeria’s economy more competitive by simplifying tax obligations for businesses and individuals nationwide.
“Second, the Nigeria Tax Administration Bill (NTAB) proposes new rules governing the administration of all taxes in the country. Its objective is to harmonise tax administrative processes across federal, state and local jurisdictions for ease of compliance for taxpayers in all parts of the country.
“Third, the Nigeria Revenue Service (Establishment) Bill seeks to rename the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS) to better reflect the mandate of the Service as the revenue agency for the entire federation, not just the Federal Government.
“Fourth, the Joint Revenue Board Establishment Bill proposes the creation of a Joint Revenue Board to replace the Joint Tax Board, covering federal and all states’ tax authorities.
“The fourth bill also suggests establishing the Office of Tax Ombudsman under the Joint Revenue Board, which would serve as a complaint resolution body for taxpayers.
“It is instructive to note that these proposed laws will not increase the number of taxes currently in operation. Instead, they are designed to optimise and simplify existing tax frameworks.
“The tax rates or percentages will remain the same under these reforms, as they focus on ensuring a more equitable distribution of tax obligations without adding to the burden on Nigerians.
“The reforms will not lead to job losses. On the contrary, they are structured to stimulate new avenues for job creation by supporting a dynamic, growth-oriented economy.
“Importantly, these laws will not absorb or eliminate the duties of any existing department, agency, or ministry. Instead, they aim to harmonise revenue collection and administration across the federation to ensure efficiency and cooperation.
“At the moment, tax administration lacks coordination among federal, state, and local tax authorities, often resulting in overlapping responsibilities, confusion, and inefficiency. Without reform, this inefficiency will persist.
“The proposed laws aim to coordinate efforts between different tiers of government, resulting in better tax resource management and greater clarity for taxpayers.
“Under existing laws, taxes like Company Income Tax (CIT), Personal Income Tax (PIT), Capital Gains Tax (CGT), Petroleum Profits Tax (PPT), Tertiary Education Tax (TET), Value-Added Tax (VAT), and other taxing provisions in numerous laws are administered separately, with individual legislative frameworks.
“The proposed reforms seek to consolidate these multiple taxes, integrating CIT, PIT, CGT, VAT, PPT, and excise duties into a unified structure to reduce administrative fragmentation.
“On the proposed derivation-based VAT distribution model, which the Northern Governors oppose, it must be stressed that the new proposal, as enunciated in the Bill, is designed to create a fairer system.
“The current model for distributing VAT is based on where the tax is remitted rather than where goods and services are supplied or consumed.
“The ongoing tax reform seeks to correct the inherent inequity in the current derivation model as a basis for distributing VAT revenue.
“The new proposal before the National Assembly outlines a different form of derivation which considers the place of supply or consumption for relevant goods and services.
“This means that states in the Northern region that produce the food we eat should not lose out just because their products are VAT-exempt or consumed in other states.
“These reforms are critical to improving the lives of Nigerians and were not put forward by President Tinubu to undermine any part of the country.
“There is no better time than now for the National Assembly to give due consideration to these bills that will overhaul our tax systems and create the revenue all the tiers of government require to fund the development our country and people urgently need.” It added
The Arewa Consultative Forum (ACF) has announced its decision to back Northern candidates in the 2027 general elections, citing the urgent need to address the worsening socio-economic and security challenges facing the region.
In a communique issued after its National Executive Council meeting in Kaduna on Wednesday, the forum expressed deep concern over the economic state of Northern Nigeria under President Bola Ahmed Tinubu’s administration, attributing the region’s struggles to flawed governance and poor policy decisions.
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The ACF criticized the Federal Government’s economic policies, describing them as detrimental to the livelihoods of Northern citizens.
According to the communique, signed by the forum’s National Publicity Secretary, Professor Tukur Muhammad-Baba, the policies have compounded the already dire economic conditions in the region.
The statement reads, “Arewa people remain at a great disadvantage, being already worse off economically compared to other parts of Nigeria. While economic reforms are indeed desirable, they should not impoverish the same people they are meant to serve. Policies must have a human face.”
The forum noted that the North faces chronic food insecurity, limited educational and vocational opportunities for youth, and a heavy reliance on small-scale economic activities.
“Livelihoods are currently dependent on micro activities. The region faces acute and chronic food insecurity; its youths lack education and skills training. Daunting as these may be, they can be reversed. The time to think big is now,” the communique emphasized.
The ACF also addressed the pervasive insecurity in the North, warning that the situation has begun to erode public confidence in the government.
“Security is an irreducible minimum of human existence. In this regard, insecurity in its various manifestations remains the most worrisome challenge of Arewa people, that has even started to corrosively undermine the authority of government,” the forum stated.
It condemned the government’s response to the crisis, arguing that the Federal Government has failed to meet its primary duty of safeguarding lives and property.
“That those whose responsibility it is to provide security will be saying they are doing their best is unacceptable,” the communique said. “The minimum duty of government is to safeguard life and property, and doing anything less is a failure.”
The ACF faulted what it described as the “flawed leadership selection process” under the Tinubu administration, claiming it has elevated individuals without the requisite competence or experience to key positions.
It urged the Federal Government to “review, reassess, reevaluate, and re-order the direction of its economic policies with a view to giving it the needed human face.”
Looking ahead to the next general elections, the ACF pledged its support for Northern politicians who demonstrate a clear commitment to addressing the region’s challenges and fostering national development.
“Notwithstanding the parlous state of Arewa’s glaring economic conditions, the policies of the current Federal Government have continued to make matters much worse,” the communique stated.
The National Chairman of the All Progressives Congress (APC), Abdullahi Ganduje, has urged Ondo State Governor Lucky Aiyedatiwa to prioritize completing ongoing projects and avoid leaving any abandoned during his second term in office.
Ganduje made the call on Wednesday at the APC’s national secretariat in Abuja after the Independent National Electoral Commission (INEC) presented Certificates of Return to Aiyedatiwa and his deputy, Adelami Olaide.
Governor Aiyedatiwa’s re-election was marked by a sweeping victory in all 18 local government areas of the state during last Saturday’s governorship election.
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Ganduje praised the outcome, describing it as a testament to the people’s confidence in the APC-led administration.
“I am happy about the landslide result. The election is not the effort of the elite and middle class alone; it is also through the effort of the grassroots,” Ganduje said. “Out of 203 wards, APC won 202, losing only one ward. This is a victory embraced by all.”
Ganduje highlighted the importance of continuity and urged the governor to leverage his experience from the previous administration led by the late Rotimi Akeredolu.
“As a deputy, you knew how projects were started by your late governor. You were part of it, also as a governor for 10 months, and now as a re-elected governor. For the next four years, you will continue,” he said.
“You know the terrains, geography, and physical landscape of all 18 local government areas. Use these insights to carve out projects that will improve the lives of the Ondo people.”
Meanwhile, Ondo APC Chairman, Ade Adetimehin, commended Ganduje’s leadership and strategic direction, which he credited for the party’s success in the election.
He also expressed gratitude to President Bola Tinubu for his unwavering support for Aiyedatiwa’s candidacy, despite internal opposition from some party stakeholders.
“We have finally killed PDP in Ondo,” Adetimehin declared. “Most of the leaders of that party have defected to the APC. With the landslide victory in this election, it is clear to the whole world that there is no PDP in Ondo.”
He further described Ganduje as a mentor whose leadership had been instrumental in uniting the party and ensuring victory at the polls.
Governor Aiyedatiwa, who succeeded Akeredolu and completed his tenure before securing re-election, has pledged to focus on delivering on his mandate and completing critical projects in his second term.
The Independent National Electoral Commission (INEC) has formally issued certificates of return to Ondo State Governor-elect Lucky Aiyedatiwa and his deputy, Olayide Adelami, following their victory in Saturday’s governorship election.
The presentation ceremony took place on Wednesday at INEC headquarters in Abuja, where the commission’s National Commissioner for Ondo State, Kunle Ajayi, handed over the certificates.
Biztellers reports that Aiyedatiwa, the candidate of the All Progressives Congress (APC) and incumbent governor, emerged victorious in the election, securing 366,781 votes to defeat his closest rival, Agboola Ajayi of the Peoples Democratic Party (PDP), who garnered 117,845 votes.
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The results were announced in Akure on Sunday by the Returning Officer, Professor Olayemi Akinyemi, Vice-Chancellor of the Federal University, Lokoja.
Election observers described the polls as peaceful and credible, commending INEC for improved logistical arrangements.
The event was attended by top APC officials, including the party’s National Chairman, Abdullahi Ganduje, Ogun State Governor Dapo Abiodun, and other party members.
Ganduje hailed the outcome as a triumph for democracy in Nigeria.
“Since 1999, we have been enjoying democracy, and we always fine-tune it to ensure it is fair, free, and decent, so that it is the vote of the people that counts,” Ganduje said.
PDP Rejects Results
Despite widespread praise for the conduct of the election, the PDP has rejected the outcome, describing it as fraudulent. Its candidate, Ajayi, vowed to challenge the results in court.
Aiyedatiwa Pledges Better Leadership
Speaking after receiving his certificate of return, Aiyedatiwa expressed gratitude to the people of Ondo State for renewing his mandate.
“The mandate you have just renewed via your huge votes across 18 LGAs where we won convincingly has placed a burden on me to serve you better than I did before now,” he said.
Aiyedatiwa initially assumed office in December 2023 following the death of his predecessor, Rotimi Akeredolu.
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