North understands tax bills better, reforms will improve economy — Gov Sule

By Kunle Sanni
Abdullahi Sule, the governor of Nasarawa state, says that the northern region now has a clearer understanding of the proposed tax reform bills and their economic benefits, dispelling earlier misconceptions that the reforms would impose additional financial burdens in the region.
Governor Sule’s remarks come after the Nigeria Governors’ Forum (NGF) on Thursday officially backed the tax legislation under consideration by the National Assembly.
The NGF, in a communique issued on Thursday, proposed a revised sharing formula for Value Added Tax (VAT): 50% based on equality, 30% based on derivation, and 20% based on population.
The governors also advocated for the continuation of the legislative process to pass the tax reform bills and called for the exclusion of terminal clauses for agencies like TETFUND, NASENI, and NITDA in the sharing of development levies.
The NGF, however, described the reforms as vital to eliminating inefficiencies and fostering a fairer tax system.
Speaking after the meeting in an interview on Channels Television’s Politics Today on Thursday, Sule said northerners were initially misled into believing the reforms would introduce new taxes, a claim he firmly debunked.
“Most people in the north were sold the idea that these reforms would lead to additional taxes. Today, we can categorically state that this is not the case. There are no new taxes, and this agreement should settle any lingering concerns,” he said.
Sule also dismissed allegations of a rift between northern governors and President Bola Tinubu’s administration, saying the reforms are designed to benefit all Nigerians.
“This should put to rest any attempts to drive a wedge between the president and certain regions. The reforms are in the interest of Nigeria as a whole,” he added.
Governor Sule emphasized that the reforms go beyond VAT, touching on critical areas such as stamp duties, royalties, and the elimination of multiple taxations. He argued that these measures would make Nigeria a more attractive destination for investors.
“The bigger picture is to attract more investments into Nigeria by creating a stable and predictable tax environment. This reform is about fostering economic growth, encouraging companies to stay, and reducing inefficiencies,” he said.
Sule highlighted ongoing efforts in Nasarawa state to attract investments in sectors like mining and agriculture, adding that a harmonised tax system, coordinated between federal and state revenue services, would ensure transparency and avoid double taxation.
President Bola Tinubu submitted four tax reform bills to the National Assembly on October 13, 2024. These include the Nigeria Tax Bill, the Tax Administration Bill, and the Joint Revenue Board Establishment Bill.
The proposed laws also seek to replace the Federal Inland Revenue Service (FIRS) with the Nigeria Revenue Service.