Popular Nigerian economists and financial analysts have backed President Bola Ahmed Tinubu’s tax reform bills amid controversy the bills have garnered in the past weeks.
Recall that on October 3, 2024, Tinubu sent four tax reform bills, including the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill to the National Assembly.
However, there have been oppositions to the bills.
First, the Northern Nigeria Governors’ Forum had rejected the bill, especially on the proposed value-added tax derivation model in the Nigeria Tax Bill.
The National Economic Council also rejected the tax derivation model.
However, President Bola had insisted that the tax reform bills pass through normal proceedings at the National Assembly, whereby necessary inputs can be made.
Earlier, the chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, had explained that the tax reforms will bring about a fairer tax system in Nigeria.
This comes as the spokesperson of the House of Representatives, Akin Rotimi, told DAILY POST in an interview on Monday that the 10th National Assembly will thoroughly go through the bill to see if it is synchronised with the interests of Nigerians upon the House resumption from recess on November 19, 2024.
“The bills will be looked into thoroughly upon the House resumption from recess on November 19, 2024,” he told DAILY POST.
Why National Assembly should consider speedy passage of Tinubu’s tax reform bills – Economists
Speaking extensively on the bills in separate interviews with DAILY POST on Monday, Prof. Godwin Oyedokun, a don at Lead City University in Ibadan, and the Chief Executive Officer of SD & D Capital Management, Gbolade Idakolo, urged the National Assembly to consider the bill for speedy passage because it will boost the country’s revenue generation and broaden the tax base.
Oyedokun said the government must address three basic challenges to the bills, including the issue of economic disparities, political dynamics and its dependency on consumption.
According to him, for the tax reforms to be successful, a careful balance should be struck to ensure all regions feel fairly treated and benefits are equitably distributed.
In the long run, he said, “It is necessary for us to have the bill passed.
“The tax reform bills represent a crucial step towards revitalising Nigeria’s economy and addressing long-standing issues around tax collection and distribution.
“However, for the reforms to be successful, a careful balance must be struck to ensure that all regions feel fairly treated and that the benefits of the reforms are equitably distributed.
“Engaging stakeholders from all regions in discussions and addressing their concerns can help foster a more unified approach to tax reform in Nigeria.
“Additionally, implementing robust public education campaigns about the reforms would enhance transparency and compliance,” he told DAILY POST.
On his part, Idakolo said the shift in the tax derivation as proposed in the bill will not only increase government revenue but encourage investment in the country.
He stressed that that bill will spur states to engage in friendly businesses.
“The Northern Governors decision against the tax reforms as regards Value Added Tax VAT is about the derivation principle, which states that where the VAT is being generated will get more share of the allocation.
“This principle to me will engender competition among the States so that it will ensure that headquarters of multinational companies will be sited in their states to benefit from higher VAT.
“The whole tax reform is a very good development that would not only increase government revenue but encourage investment in the country.
“I strongly advocate a tax system that will be derivative in nature so that all states will be challenged to be business friendly.
“The National Assembly should critically look at the inherent benefits of the bill to the revenue accruals to both federal and state governments, as well as the attendant benefits to other stakeholders and give the bill a speedy passage,” he stated.
Nigerian economists back Tinubu’s tax reform bills
