The pan-Yoruba socio-political organisation, Afenifere, has endorsed the tax reform bills amid recent pushbacks by Northern states, statesmen, and lawmakers.
President Bola Tinubu in September transmitted four tax bills to the parliament for approval. These are the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.
The bills have generated controversies since they were forwarded to the legislative arm of government. It has passed for the second reading at the Senate last week.
Northern statesmen have since advised Mr Tinubu to hold on before pushing the controversial tax reform bills, claiming it will not favour the region.
Afenifere on its part on Monday declared its support for the bills, saying it will create a fiscal system that promotes revenue generation at the top tiers of government.
The group’s Organising Secretary, Mr Abagun Omololu, highlighted that the proposed bills could offer significant economic advantages for every region, including the northern area.
“Afenifere is in support of the tax reform for its promise of economic revival. We have noted that the bills are a crucial step towards stimulating the Nigerian economy, hence with the tax system reform, we hope for improvement of revenue generation at both federal and state levels. This is essential for funding critical infrastructure and social services that will benefit all Nigerians, including those in the North.
“After due scrutiny and consideration, we agree that the proposed changes to VAT administration are designed to align revenue sharing more closely with consumption patterns, affording states to receive funding based on actual economic activity rather than historical allocations,” he said.
In a related development, the Governor of Borno State, Mr Babagana Zulum declared, while appearing on a Channels Television programme on Sunday, that the region would “lose” if the bills were passed.
“On this tax issue, there are a lot of misconceptions. We felt that the VAT provision in the tax law. Based on the calculations that we did, only Lagos and Rivers States will benefit from this scheme. We did our own research and concluded that we would lose,” Zulum said.
“Why are we in a rush? We advised the Federal Government to take a pause and expunge some of the clauses that are inimical to Northern Nigeria.
“What we are saying is that give more time, let us do a deeper consultation to understand the nitty-gritty of this tax regime before passing it into law.”
Former Vice President and a key member of the opposition Peoples Democratic Party (PDP), Mr Atiku Abubakar, called on the National Assembly to revisit and make public the resolutions of the bills.
Also, Senator Ali Ndume has been vocal about his opposition to the tax reform bills, saying that the hurry by the Presidency and some lawmakers to pass the bills was suspicious.
“Withdraw the bill, do more consultations and then bring the bill again. Why are they in a hurry? That is a big suspicion,” Ndume said during a recent interview.