The Senior Special Assistant to the President on Media and Publicity, Temitope Ajayi, has provided further clarity regarding the heated discussions surrounding the new tax reform bills.
On Tuesday, President Bola Tinubu directed the Ministry of Justice and the National Assembly to collaborate and address the public’s concerns about the proposed laws.
These bills have sparked debates, with significant criticism from some northern governors. While some opponents claim the reforms are unfavorable to the northern region, others fear they may worsen economic hardship for Nigerians.
To address these grievances, President Tinubu tasked the Justice Ministry to collaborate with lawmakers and resolve the contentious issues in the bills.
“The government has no hidden agenda, and the legislative process remains open to meaningful suggestions,” stated the Minister of Information and National Orientation, Mohammed Idris. He assured the public that all valid concerns would be considered before the bills are finalized.
Speaking on Wednesday, Ajayi emphasized that change often meets resistance but stressed the importance of embracing reforms for the greater good. “Fear of the unknown can hold us back, but we must not let it stop us from pursuing transformative possibilities,” he said.
Ajayi noted that much of the resistance, led by figures like Borno State Governor Babagana Zulum, comes from misconceptions about the bills’ intentions. He urged critics to study the proposals carefully, highlighting their potential to strengthen both federal and state financial systems.
At a recent town hall discussion, experts, including Taiwo Oyedele, Chairman of the Presidential Committee on Tax and Fiscal Policy Reforms, made compelling arguments for the bills, underscoring their progressive nature.
Ajayi outlined several ways the tax reforms would benefit states, including:
-
Increasing states’ share of VAT revenue by transferring 5% from the federal government’s allocation.
-
Granting states exclusive access to revenue from electronic money transfer levies.
-
Replacing outdated stamp duty laws with streamlined versions to boost state earnings.
-
Empowering states to tax Limited Liability Partnerships.
-
Granting states tax exemptions on bonds, equal to those enjoyed by the federal government.
-
Ensuring a more equitable VAT distribution model to increase states’ income.
-
Strengthening tax administration to improve collaboration and resolve disputes.
-
Allowing the Accountant General to ensure states receive taxes owed by federal institutions operating locally.
-
Creating a framework for state revenue services to operate autonomously and more efficiently.
-
Providing a legal basis for taxing lotteries, gaming, and introducing withholding tax for states’ benefit.
Ajayi concluded by stating that these reforms aim to streamline Nigeria’s tax system, promote economic growth, and empower states to generate more revenue. He urged governors to invest in infrastructure and human capital, positioning their states as hubs for business and innovation.
“These changes challenge leaders to think critically and seize opportunities to make their states thrive economically,” he said.
