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Tinubu Excited by Governors’ Endorsement on Tax Reform Bills

President Bola Ahmed Tinubu has expressed enthusiasm and gratitude towards the Nigerian Governors’ Forum (NGF) for their unanimous endorsement of the four Tax Reform Bills currently under consideration by the National Assembly. This development marks a significant step forward in the President’s agenda to modernize and streamline Nigeria’s tax system.

In a statement released early Friday, President Tinubu lauded the governors for their “bold leadership and commitment to fostering unity among leaders nationwide, transcending regional, ethnic, and political barriers to advance Nigeria’s development.” The endorsement comes after intensive consultations between the governors and the Presidential Committee on Tax and Fiscal Policy, which President Tinubu described as “a commendable example of cooperation between the Federal and State governments.”

The Tax Reform Bills, which were sent to the National Assembly in October 2024, aim to reform the country’s fiscal policies by updating outdated tax laws, promoting equitable distribution of resources, and enhancing Nigeria’s investment climate. The proposed legislation includes measures to simplify the tax structure, reduce the burden on vulnerable citizens, and increase revenue for both federal and state governments.

Particularly notable is the governor’s proposal for a revised Value Added Tax (VAT) sharing formula, suggesting 50% based on equality, 30% on derivation, and 20% on population. This formula aims to ensure a fairer distribution of resources, with the governors advocating for no increase in VAT rates and exemptions for basic food items and agricultural inputs to protect the populace from further economic strain.

President Tinubu highlighted the importance of this collaboration, stating, “This consensus transcends regional, ethnic, and political barriers to advance Nigeria’s development.” He also commended the Progressive Governors Forum, the Northern Governors Forum, and all other groups that facilitated the bipartisan resolution of the controversies surrounding the tax bills.

The endorsement has been seen as a pivotal moment in Nigerian politics, showcasing the capacity for national dialogue and agreement on critical economic reforms. The President urged the National Assembly to expedite the legislative process for these bills, emphasizing the urgency of implementing these reforms to swiftly reap their benefits for Nigeria’s economy.

The move has been met with mixed reactions across Nigeria. While many economists and business leaders applaud the potential for increased efficiency and attractiveness for foreign investments, there are concerns about the immediate impact on consumers and small businesses. Critics argue for a careful approach to ensure that the new tax regime does not disproportionately affect the poor or lead to inflation.

Nonetheless, the unity shown by the governors in backing these bills is perceived as a strong signal of political will to drive economic reforms at a time when Nigeria faces significant fiscal challenges. This endorsement not only strengthens President Tinubu’s economic policy but also sets a precedent for future cooperation between different levels of government on national issues.

As these bills move through the legislative process, all eyes will be on the National Assembly, where the voices of both supporters and detractors will be heard. The outcome of this legislative effort could define the economic trajectory of Nigeria for years to come, highlighting the importance of the governors’ endorsement in this transformative moment.

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