All states will benefit from the planned tax reform, according to Mr. Bayo Onanuga, Special Adviser to the President on Information & Strategy. The Northern Governors’ Forum (NGF) forum was used to respond to the stance of the governors of Nigeria’s 19 Northern States. The new derivation-based model for value-added tax (VAT) distribution in the new tax reform measures before the National Assembly has drawn criticism, according to the forum’s chairman, Governor Muhammad Inuwa Yahaya of Gombe State.
President Tinubu and the Federal Executive Council recently endorsed new policy initiatives aimed at streamlining Nigeria’s tax administration processes, enhancing efficiency, and eliminating redundancies across the nation’s tax operations. The National Assembly is considering four executive bills designed to transform and modernise Nigeria’s tax landscape. The first is the Nigeria Tax Bill, which aims to eliminate unintended multiple taxation and make Nigeria’s economy more competitive by simplifying tax obligations for businesses and individuals nationwide. The second is the Nigeria Tax Administration Bill (NTAB), proposing new rules governing the administration of all taxes in the country. The third is the Nigeria Revenue Service (Establishment) Bill, seeking to rename the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS) to better reflect the mandate of the Service as the revenue agency for the entire federation, not just the Federal Government.
The fourth bill proposes the creation of a Joint Revenue Board to replace the Joint Tax Board, covering federal and all states’ tax authorities. The Office of Tax Ombudsman under the Joint Revenue Board also suggests establishing the Office of Tax Ombudsman under the Joint Revenue Board, which would serve as a complaint resolution body for taxpayers.
Onanuga stated that the proposed laws will not increase the number of taxes currently in operation but are designed to optimize and simplify existing tax frameworks. The tax rates or percentages will remain the same under these reforms, focusing on ensuring a more equitable distribution of tax obligations without adding to the burden on Nigerians. The proposed laws aim to coordinate efforts between different tiers of government, resulting in better tax resource management and greater clarity for taxpayers.
All states will gain from the proposed tax change, according to Mr. Bayo Onanuga
