Paragraph 1: Presidential Commendation for Governors’ Endorsement of Tax Reform Bills
President Bola Tinubu expressed his profound gratitude to the Nigeria Governors’ Forum (NGF) for their unanimous endorsement of the revised tax reform bills currently under consideration by the National Assembly. He lauded their "bold leadership and commitment to fostering unity among leaders nationwide," emphasizing that their consensus transcended regional, ethnic, and political barriers, prioritizing Nigeria’s development. The President described the consultation between the NGF and the Presidential Committee on Tax and Fiscal Policy as a commendable display of cooperation between the Federal and State governments.
Paragraph 2: Recognition of Key Players in Achieving Consensus
President Tinubu extended special commendations to Abdulrahman AbdulRazaq, the Chairman of the NGF and Governor of Kwara State, for effectively galvanizing support for the bills among his fellow governors. He also acknowledged the contributions of the Progressive Governors Forum, the Northern Governors Forum, and other groups that facilitated the bipartisan resolution of the controversies surrounding the tax bills. The President emphasized that the primary objective of the bills was to promote national interests, enhance the competitiveness of Nigeria’s economy, and attract both local and foreign investments.
Paragraph 3: The Significance of Dialogue and Collaboration
The President highlighted the importance of constructive dialogue in resolving disagreements, as demonstrated by the successful discussions between the NGF and the Presidential Committee. He affirmed his belief in the governors’ crucial role in nation-building and pledged his commitment to partnering with them to foster economic growth, national harmony, peace, and stability. This cooperative approach signals a commitment to inclusive governance and collaborative policymaking.
Paragraph 4: Senator Ndume’s Dissent on the VAT Sharing Formula
Despite the widespread support for the revised tax reform bills, Senator Ali Ndume, representing Borno South Senatorial District, voiced his dissent regarding the proposed 30% derivation-based VAT sharing formula. He argued that this percentage was excessive, particularly considering the 13% derivation already allocated to oil-producing states bearing the brunt of environmental degradation. Ndume suggested that the derivation percentage should be capped at 13% or, ideally, reduced to 10%.
Paragraph 5: Calls for Broader Public Engagement and Review
While acknowledging the governors’ acceptance of the adjusted VAT sharing formula as a positive step, Senator Ndume emphasized the need for broader consultation. He urged the National Economic Council, the Northern Elders Forum, and other stakeholders to contribute their perspectives to ensure a comprehensive and inclusive approach to tax reform. Ndume advocated for public hearings to allow citizens to express their views on the tax bills, emphasizing the importance of public input in shaping policy decisions.
Paragraph 6: Recommendations for Procedural Improvement and Revenue Management
Senator Ndume called for a reduction in the 4% non-oil revenue retained by the Federal Inland Revenue Service (FIRS), suggesting a cap of 1% as an administrative tax. He criticized the current arrangement, arguing that it encouraged extravagant spending due to the substantial revenue generated. Furthermore, he urged the Federal Government to learn from the controversy surrounding the tax bills, emphasizing the need for thorough public consultation and engagement when proposing reforms that impact the public. He stressed the principle that laws are made for the people and not the other way around.
