The presidency has clarified that the proposed tax reform bills will not harm the northern region or benefit only Lagos and Rivers. Bayo Onanuga emphasized that the reforms aim to improve Nigeria’s economy and quality of life, with no impact on key agencies like TETFund, NASENI, and NITDA.
The presidency has responded to claims that the proposed tax reform bills would negatively impact northern Nigeria, asserting that no provision in the bills will impoverish the region. Bayo Onanuga, the presidential spokesperson, issued a statement on Monday clarifying that the reforms will not result in greater wealth for Lagos or Rivers states at the expense of other regions.
In October, President Bola Tinubu submitted four tax reform bills to the National Assembly: the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill. While northern governors have expressed concerns about the new VAT-sharing model in the Nigeria Tax Administration Bill, which allocates 55% of VAT to states, the presidency has emphasized that the reform aims to improve the economy for all regions.
The proposed VAT sharing model, with a greater focus on derivation, would allocate 60% of VAT revenue to states and local governments based on derivation, a formula that has drawn criticism from northern stakeholders, who argue that it benefits southern states like Lagos and Rivers.
Onanuga rejected the claims, noting that the bills are designed to boost Nigeria’s economy and quality of life, particularly for disadvantaged groups. He also clarified that key agencies like TETFund, NASENI, and NITDA would not be eliminated under the reforms. The presidency further criticized political figures who have spread misinformation about the tax bills.
