By Tayo Busayo, Abuja
DAILY COURIER – Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has dismissed claims that the proposed tax reform bills before the National Assembly are designed to undermine or target any specific region of the country.
Speaking during an interactive session on Monday organized by the House of Representatives to deliberate on the tax reform bills, Oyedele assured stakeholders that the proposals are aimed at fostering equity and efficiency in Nigeria’s tax system, not divisiveness.
“There is no negative thinking about any region or anything,” Oyedele stated emphatically, urging all parties to approach the reforms with an open mind for the collective benefit of the country.
The proposed tax reform bills—submitted to the National Assembly in September by President Bola Tinubu—are part of a broader strategy to modernize and streamline Nigeria's fiscal framework. The reforms are based on recommendations from Oyedele’s committee.
The bills include:
1. The Nigeria Tax Bill 2024, which provides a fiscal framework for taxation across the nation.
2. The Tax Administration Bill, which aims to establish a clear legal structure to reduce disputes and ambiguities in tax collection.
3. The Nigeria Revenue Service Establishment Bill, which seeks to replace the Federal Inland Revenue Service Act and create a more robust Nigeria Revenue Service.
4. The Joint Revenue Board Establishment Bill, designed to introduce a tax tribunal and tax ombudsman for resolving disputes efficiently.
Despite the federal government’s assurances, some state governors, including members of the Northern Governors Forum, have raised objections to elements of the reform. They have particularly rejected the derivation-based Value Added Tax (VAT) distribution model proposed in the new tax bill. Governors have also called for broader consultations to address their concerns before proceeding with the legislative process.
Under the current VAT structure, revenue is allocated as follows: 15% to the Federal Government, 50% to the States and FCT, and 35% to Local Governments. Oyedele clarified that the proposed model would ensure states receive VAT revenues based on consumption within their territories, promoting fairness and efficiency.
Addressing lawmakers and stakeholders, Oyedele argued that the reforms are critical to overhauling Nigeria’s outdated tax system. He emphasized that the proposed changes would empower states and local governments by giving them a larger share of VAT revenues generated within their jurisdictions.
"The reforms are designed to ensure efficiency, transparency, and accountability in revenue allocation and collection," he explained. Oyedele added that modernizing tax laws through these bills would reduce disputes and provide a clearer framework for all stakeholders, fostering economic growth nationwide.
As deliberations continue in the National Assembly, the proposed tax reforms remain a critical component of the Tinubu administration’s plan to strengthen Nigeria’s fiscal landscape and deliver on promises of economic sustainability and growth.
