‘It Will Transform Nigeria’s Fiscal Landscape’ – RMAFC Hails Tinubu, Denies Opposing Tax Reform Bills

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has categorically refuted claims suggesting its opposition to President Bola Ahmed Tinubu’s proposed Tax Reform Bills currently under consideration by the National Assembly.

It was reported earlier that RMAFC had “vehemently rejected” the controversial tax reform bills.

However, during a press conference held in Abuja on Tuesday, RMAFC Chairman, Dr Mohammed Shehu, characterized these allegations as “false” and “malicious” and provided clarification regarding the commission’s stance on the proposed legislation.

He emphasized that the commission is in full support of the bills and has been actively engaged in the reform process.

The tax reform proposal has generated considerable discussion in recent weeks, particularly concerning the allocation and derivation of Value Added Tax.

Shehu further noted that the RMAFC had submitted a detailed memorandum that articulates its position, which is consistent with both international best practices and President Tinubu’s vision for a more equitable and sustainable fiscal framework for Nigeria.

“We applaud President Tinubu’s strong commitment to repositioning Nigeria’s revenue base and his bold initiatives to address the country’s fiscal challenges.

“The proposed tax reform bills are a significant step towards integrating untapped revenue sources, enhancing Nigeria’s revenue-to-GDP ratio, and positioning the country favourably among nations with high fiscal performance,” Shehu said.

The RMAFC chair expressed his disappointment regarding the spread of inaccurate information and encouraged the public to ignore such misinformation.

Shehu further called upon the media to maintain high standards of journalism by disseminating only verified information, thereby supporting the nation’s ongoing fiscal reforms.

As an important figure in Nigeria’s fiscal policy, Shehu reiterated that the RMAFC’s role is to offer expert guidance on financial issues.

He highlighted the Commission’s ongoing collaboration with the National Assembly to ensure that the proposed bills are comprehensive and effective, tackling concerns like tax evasion and fostering fiscal equity.

Shehu said, “Once again, we reiterate our total support for the tax reform, which aligns with our goal of helping the President in his ongoing fiscal reforms. We acknowledge our responsibility to provide professional guidance whenever necessary and pledge to continue working tirelessly to support the President’s vision for a more prosperous Nigeria.

“It is important to recognize that the RMAFC is a critical stakeholder in Nigeria’s fiscal framework. Our mandate is to ensure an equitable revenue-sharing formula among the three tiers of government. We take this responsibility seriously and are committed to providing expert advice to support the government’s fiscal policy objectives.

“In this regard, we have been working closely with the National Assembly to provide technical input on the proposed tax reform bills. Our goal is to ensure that the legislation is robust, effective, and aligns with global best practices.”

While recognising the reform’s challenges, including its potential impact on businesses and individuals, Shehu reassured that the RMAFC is committed to engaging with stakeholders constructively to resolve these concerns.

“We believe that the proposed tax reform bills have the potential to transform Nigeria’s fiscal landscape. The bills aim to promote fiscal equity, reduce tax evasion, and increase revenue generation. These objectives are in line with the RMAFC’s mandate, and we are committed to supporting their implementation,” he added.

Shehu emphasized the importance of Nigerians staying committed to President Tinubu’s vision for a thriving Nigeria and collaborating effectively to ensure the successful execution of the tax reforms.

Additionally, he urged the media to uphold principles of truth, accuracy, and fairness in their reporting, cautioning against the dangers of disseminating false information.