Chairman of Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele has said that 90 per cent of Nigerians support the tax reform bills currently before National Assembly.
Gatekeepers News reports that Oyedele said this at a special town hall on tax reform bills on Channels TV where participants expressed their views on the proposed legislation on Monday.
Oyedele said the majority of Nigerians support the tax reform bills and that any contentious areas could be resolved through dialogue.
Former Speaker of House of Representatives, Yakubu Dogara criticised state Governors for inadequate consultations on laws, dismissed concerns about the timing of reforms, and underscored North’s potential to thrive without reliance on VAT.
An economist, Paul Agbaje cautioned against increasing VAT and personal income tax for low-income earners. He however commended the bill’s efforts to streamline taxes and simplify the appeals process.
Chief Executive Officer (CEO) of Global Investment, Baba Yusuf praised the reform for its fairness, data-driven approach, and benefits for northern states, urging Nigerians to study the bill independently.
Recall that President Bola Ahmed Tinubu transmitted four tax reform bills to the National Assembly for consideration in September.
The bills include Nigeria Tax Bill 2024, which aims to provide a comprehensive fiscal framework for taxation; Tax Administration Bill, designed to establish a clear legal framework to reduce disputes; Nigeria Revenue Service Establishment Bill, which seeks to replace Federal Inland Revenue Service Act with Nigeria Revenue Service; and Joint Revenue Board Establishment Bill, which proposes a tax tribunal and tax ombudsman.
State Governors however disapproved of the bills and called for their withdrawal to allow for more consultations, but the president rejected their appeal.
Oyedele noted that over 90 per cent of Nigerians support the tax reform bills National Assembly, emphasising that Presidential Committee on Fiscal Policy and Tax Reforms conducted a survey involving over 3,000 participants, including tax professionals and Chief Financial Officers, both online and offline.
He said, “Guess what? Among those who participated in person, the approval rate was 100 per cent. For those who participated online or watched the recorded session, the approval rate was 92 per cent. Even among those who only followed our updates without participating, the approval rate stood at 76 per cent. Overall, more than 90 per cent of Nigerians support these reforms.”
The committee chairman added that areas of contention could be resolved through dialogue, saying, “These bills contain over 200 transformative provisions aimed at setting Nigeria on the right path to prosperity. We should not allow one or two provisions, which can be easily discussed and agreed upon, to become bottlenecks.”
Dogara criticised state Governors for rejecting the bills, and accused them of crafting laws without adequate consultations, adding that, in some instances, state laws are written “from the living rooms of governors.”
The former Speaker dismissed the Governors’ complaints of insufficient consultation on the tax reforms, saying, “I have heard even legislators speaking as if they are spokespersons for the Governors’ Forum.”
“At the state levels, how many people do governors consult when they are making laws? In some cases, state laws are written from the living rooms of governors.”
He also urged northern leaders to rise above regionalism, sectionalism, and religious sentiments, focusing instead on actions that would benefit the country.
Addressing concerns about the timing of the reforms, he emphasised that “the right time to act is now.”
He added, “The notion of timing, as I have heard it discussed, is a tragic misconception”
“There is no future, no past—there is only now. Time itself becomes an ally of the primitive forces of social stagnation. If this is the right thing to do, then the time to do it is now, not tomorrow.”
The former Speaker argued that the North does not need Value Added Tax (VAT) to thrive if its resources are adequately harnessed.
He said, “The global market size of dairies and beef is projected to reach $2.5 trillion in the next three years. If we can capture just five per cent of this market, that would amount to $250 billion. We don’t need VAT from any state in Nigeria to survive. The North is the most endowed part of the country.”
Dogara praised President Tinubu for the establishment of Ministry of Livestock Development, describing it as a significant move for the North.
He said, “No northern leader in my lifetime has done what the President has done for the North by creating this ministry. It has immense potential to transform the region.”
The former Speaker called on northern leaders to explore and maximise the region’s resources, saying: “The North can survive. If you doubt it, look at Australia’s wealth from mining minerals. We have all the resources we need.”
Agbaje, on his part, raised concerns about the proposed tax reform bill, particularly its plan to increase Value-Added Tax (VAT) from 7.5 per cent to 15 per cent, and warned that such a move could discourage consumption and worsen Nigeria’s economic challenges.
He also addressed the bill’s proposal to raise personal income tax rates. Though he supported the upper limits, he argued that the current structure places an excessive burden on low-income earners. He suggested implementing a lower tax rate for individuals earning below a specified threshold.
The economist commended certain aspects of the bill, including its initiative to streamline the appeals process for taxpayers disputing decisions by tax authorities. He also lauded its effort to harmonise taxes by reducing the number of levies from over 60 to a single-digit figure.
Agbaje described the bill as earning a “pass mark,” noting that 90 per cent of Nigerians support it. However, he stressed the importance of addressing its shortcomings before it becomes law.
Yusuf on the other hand, expressed strong support for the proposed reform, calling it “one of the best” introduced by Tinubu.
Yusuf highlighted the reform’s focus on equity, balance, and data-driven decision-making, which he said would significantly benefit northern Nigeria.
He pointed to four key features of the bill: the exemption of vulnerable individuals from taxes, the allocation of VAT based on derivation or consumption, the promotion of value creation and innovation, and increased benefits for states like Sokoto and Kano from the revised VAT allocation.
The CEO urged Nigerians to study the bill to understand its benefits rather than relying solely on political leaders for guidance. He also called on leaders to prioritise innovation, value creation, and protecting their gains rather than resorting to rent-seeking and commission-based practices.
Additionally, Nasarawa State Governor, Abdullahi Sule called for a review of the proposed removal of Value Added Tax (VAT) from Federation Account Allocation Committee (FAAC) framework, aligning his stance with that of the Northern Governors and National Economic Council (NEC).
