President Bola Tinubu instructs the Attorney-General of the Federation (AGF), Lateef Fagbemi SAN, to collaborate with the National Assembly to resolve valid concerns regarding the Tax Reform Bills currently under review.
The directive, announced by the Minister of Information and National Orientation, Mohammed Idris, underscores the president’s commitment to ensuring that critical issues are addressed before the bills become law.
The proposed reforms aim to reduce financial pressure on Nigerians while strengthening the capacity of states and local governments to drive sustainable development. Idris highlights the administration’s commitment to fiscal policies that devolve resources to subnational governments, ensuring democracy benefits citizens directly.
He clarifies that the legislative process is transparent and inclusive, refuting suggestions of any undue haste. Tinubu has instructed the Federal Ministry of Justice and relevant stakeholders to work closely with lawmakers to incorporate meaningful input and address lingering concerns.
Idris emphasizes that the reforms are designed to boost revenue generation without increasing taxes. He also points to a 2023 Supreme Court ruling on local government financial autonomy, which is expected to enhance governance at the grassroots level.
“These reforms are structured to enhance public accountability, close revenue loopholes, and ensure better management of resources across all tiers of government,” Idris states. He assures that funds conserved from these efforts will be channeled into critical sectors such as healthcare, education, transportation, and technology.
The reforms have sparked debates, particularly regarding the proposed derivation-based model for Value Added Tax (VAT) allocation. Critics from some regions argue that the changes may not favor their interests.
Under the current framework, VAT revenue is allocated as follows: 15% to the Federal Government, 50% to states and the Federal Capital Territory, and 35% to local governments. Other considerations include equality (50%) and population size (30%).
The proposed changes prioritize consumption-based distribution over collection points, with the goal of ensuring fairness and addressing long-standing inequalities.
President Tinubu encourages stakeholders to approach the discussions with mutual respect and understanding, acknowledging the diverse opinions on the matter. The administration reaffirms its dedication to reforms that promote equitable resource distribution and better governance for all Nigerians.
, Lateef Fagbemi SAN, to collaborate with the National Assembly to resolve valid concerns regarding the Tax Reform Bills currently under review.){kind=link}