Nasarawa State Governor, Abdullahi Sule, has stated that governors who have expressed strong reservations about the proposed Tax Reform Bills would reconsider their stance given adequate information and consultations.
Governor Sule made this assertion during a brief presentation at the Town Hall Conversations on the proposed legislation held in Lafia.
Present at the event were former Speaker of the House of Representatives, Hon. Yakubu Dogara; the Chief Executive Officer of Global Investments and Trade Company, Baba Yusuf; the Chairman of the Presidential Committee on Fiscal Policy and Tax Reform, Mr. Taiwo Oyedele; and other stakeholders.
Checks revealed that the Forum of Governors from the North has been at the forefront of opposition to the Bills, claiming they are detrimental to the region’s economic interests.
Governor Sule maintained that had the Chairman of the Presidential Committee initiated extensive consultations and clarifications earlier—particularly regarding the contentious issue of the VAT sharing formula among tiers of government—the governors would not have adopted a hardline stance.
He said, “I have listened to clarifications made on perceived misgivings by the Governors’ Forum and other critical stakeholders about the Tax Reform Bills and am now inclined to support the proposed reforms, particularly in eliminating multiple taxation.
“Some of us who are governors today were, in the recent past, key players in companies that generate and pay significant VAT to government coffers.
“We clearly understand the lopsidedness in VAT proceeds sharing, which these reforms aim to correct.
“Specifically, if Mr Taiwo Oyedele had earlier informed the governors that a new model of 60% VAT distribution for better equity is part of the reform, as he clarified at this Town Hall Conversation, there wouldn’t have been much disagreement from the onset.
“This conversation, happening now, is what the Governors’ Forum requested before progressing with the Bills for consideration at the National Assembly.”
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Earlier, in his remarks, Mr Oyedele dismissed insinuations that some provisions of the Tax Reform Bills aim to liquidate public agencies like the National Agency for Science and Engineering Infrastructure (NASENI) and the Tertiary Education Trust Fund (TETFUND).
He explained that the focus of the legislation is wealth redistribution through the exemption of vulnerable groups from personal income tax while shifting the tax burden to those earning up to ₦1.5 million annually.
According to him, the proposed reforms will address the contentious issue of VAT distribution with a new formula driven by equity and shared prosperity.
He said, “The current formula for sharing VAT among states is based on 20% derivation, 50% equality, and 30% population.
“The reform proposes a new derivation model that attributes VAT to the place of supply and consumption rather than the current model, which attributes VAT to the state where it is remitted, thereby favoring states with company headquarters.
“Furthermore, under the new model, derivation will account for 60% of VAT distribution, promoting equity and discouraging states from seeking to administer VAT as a state tax.
“Such a move would result in lower revenue for all tiers of government and impose a higher burden on businesses.”
In his remarks, Hon. Yakubu Dogara, the former Speaker of the House of Representatives, refuted claims that the Bills would impoverish the North. Instead, he argued that, if passed into law, they would generate $250 billion for the Northern region in the coming years through livestock and mineral resource exploration.
He said he had read the four Bills and found them to be well-intended for economic revival and wealth creation for Nigerians.
Dogara cautioned Northern leaders, particularly governors, against resorting to ethnic and religious sentiments.
He said, “The time is always ripe to do right. The time to carry out the proposed tax reforms based on the four Bills I have personally read is now, not tomorrow.
“For us in the North, the proposed reforms challenge us to look inward and leverage the $2.5 trillion global livestock market through the newly created Ministry of Livestock.
“By prudently managing resources and tapping into the livestock market, experts project that the North could earn about $25 billion from the $2.5 trillion global livestock market in the near future.”
Similarly, the Chief Executive Officer of Global Investment and Trade Company, Mallam Baba Yusuf, described the reform Bills as visionary and vital for reviving the nation’s economy through competitive revenue generation and distribution.
“I’ve read the Bills; they are well-envisioned for the country and Nigerians.
“Nigerians, particularly those of us from the North, should read the Bills themselves and not rely on misinformation about the planned reforms,” he said.
