Presidency: Tax Reform Bills Will Benefit All Regions Equally

The Presidency has refuted claims that the proposed tax reform bills currently before the National Assembly would marginalize northern Nigeria while disproportionately favoring states like Lagos and Rivers. According to a statement issued on Monday by presidential spokesperson Bayo Onanuga, the reforms aim to uplift all Nigerians, especially the disadvantaged, by simplifying tax administration and fostering a more business-friendly environment.

Clarifying Misconceptions About VAT and Federal Agencies

The concerns were triggered by remarks from Borno State Governor Babagana Zulum, who argued that the proposed Value Added Tax (VAT) sharing model could economically disadvantage northern states. Onanuga dismissed these fears as baseless, asserting that the reforms are designed to be inclusive and equitable.

“The tax reform bills will neither make Lagos and Rivers states wealthier than others nor impoverish any region,” Onanuga stated. He urged Nigerians to resist attempts to politicize the bills and create divisions along regional lines.

Addressing other misconceptions, Onanuga clarified that the reforms do not propose dismantling key federal agencies such as the Tertiary Education Trust Fund (TETFUND), the National Agency for Science and Engineering Infrastructure (NASENI), or the National Information Technology Development Agency (NITDA). Instead, these agencies will continue to operate, funded through budgetary allocations rather than tax revenues.

The Goal: Simplification and National Growth

The spokesperson reiterated that the tax and fiscal policy reforms introduced by President Bola Tinubu are primarily aimed at streamlining tax collection processes, reducing the burden on businesses, and fostering sustainable national development. “These reforms are about creating a robust and fair taxation system that benefits all Nigerians, not just a select few,” he added.

Yakubu Dogara: Northern Leaders Must Embrace Progress

Former Speaker of the House of Representatives, Yakubu Dogara, urged northern leaders to adopt a pragmatic and forward-thinking approach to the proposed reforms. Speaking during a Channels Television town hall in Abuja on Monday, Dogara called for leadership that transcends ethnic and religious biases.

“We, as Northern leaders, must set aside sentiments and focus on what the bills can achieve for the future of our region,” he emphasized.

Dogara also criticized senators who claimed there had been insufficient consultations on the bills, questioning their own legislative practices. “How many consultations do they make when passing state laws? Often, such laws are drafted in governors’ living rooms,” he remarked, stressing that the bills’ long-term impact matters more than their immediate popularity.

Empowering Subnational Governments

Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal and Tax Reforms, weighed in on the debate, highlighting that the bills are structured to empower subnational governments. According to Oyedele, these reforms will enable states to generate more revenue independently, thereby reducing over-reliance on federal allocations.

“The focus is on achieving self-sufficiency for all regions, ensuring that every state has the capacity to fund its own development,” he said.