The Presidency has clarified that the tax reform bill before the National Assembly is not aimed at disadvantaging the 19 northern states. This follows concerns from northern governors over a proposed shift to a derivation-based model for Value Added Tax (VAT) distribution.
According to a statement released on Thursday by Presidential Spokesman Bayo Onanuga, the reform is intended to foster a fairer distribution model that benefits all regions equally.
“The new proposal, as enunciated in the bill, is designed to create a fairer system that will benefit all states,” he stated.
Onanuga, serving as the Special Adviser on Information and Strategy to President Bola Tinubu, emphasized that while the administration appreciates the support of northern leaders on issues of national security, it also seeks to address any misunderstandings surrounding the tax reforms.
He stressed that the proposed policies, endorsed by President Tinubu and the Federal Executive Council, aim to modernize tax administration, improve efficiency, and eliminate redundancies within the tax system.
The reforms under consideration stem from an in-depth review of Nigeria’s tax laws and are expected to streamline tax collection, simplify compliance, and boost economic competitiveness.
As Onanuga explained, these efforts reflect a holistic approach to enhancing Nigeria’s tax landscape for the benefit of all Nigerians, not to undermine any particular region.
He further assured that the bill’s provisions, currently under review, are part of broader efforts to unify and improve tax processes across federal, state, and local levels, making it easier for taxpayers nationwide.
By supporting these reforms, the government intends to build a robust, fair, and transparent tax system that promotes economic growth and positively impacts the lives of all Nigerians.
