The pan-Yoruba socio-political organization, Afenifere, has given its endorsement to the proposed tax reform bills, emphasizing their potential to bring significant economic benefits to all regions of Nigeria, including the northern part.
Afenifere’s Organizing Secretary, Abagun Omololu, expressed the group’s support in a statement, outlining the expected positive impact of the reforms on the country’s economy.
Omololu stressed that the tax reforms could be pivotal in revitalizing the Nigerian economy, particularly in boosting revenue generation at both the federal and state levels, according to Daily Post.
He stated that the reforms are crucial for funding essential infrastructure and social services that would benefit all Nigerians, including those in the northern region. He also noted that after careful examination, Afenifere supports the proposed changes to the Value Added Tax administration, which are aimed at aligning revenue sharing with consumption patterns rather than relying on historical allocations. This shift, he added, would enable states to receive funding based on actual economic activity.
“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 in 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 funding based on actual economic activity rather than historical allocations,” he said.
Despite Afenifere’s backing, the tax reform bills have sparked controversy, with strong opposition from governors and stakeholders in the northern part of the country. In response to the tax challenges, President Tinubu inaugurated the Presidential Fiscal Policy and Tax Reform Committee, which introduced plans to replace the National Tax Policy with a more comprehensive framework titled the “National Fiscal Policy on Fair Taxation, Responsible Borrowing, and Sustainable Spending.”
This initiative led to the drafting of four bills currently under consideration by both chambers of the National Assembly: the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.
