By Miracle Ogunde
Nasarawa State Governor, Abdullahi Sule, has revealed how the reforms, particularly the revised Value-Added Tax (VAT) distribution formula, would ensure greater equity and fiscal balance across the country.
Sule, disclosed that the proposed tax reform bills championed by President Bola Tinubu will significantly benefit northern Nigeria.
Speaking during an interview on Politics Today on Channels TV, Governor Sule said, “These reforms are a game-changer for northern Nigeria. Under the new VAT sharing formula, 50% will be allocated for equity, 30% based on derivation, and 20% tied to consumption. This adjustment reflects a fairer system that addresses long-standing disparities.”
The Nigerian Governors Forum (NGF), which initially approached the reforms with caution, recently announced its support for President Tinubu’s proposals after securing assurances from the President’s Tax Reform Committee, chaired by Taiwo Oyedele.
According to Governor Sule, the endorsement came after thorough deliberations and adjustments to the reform framework to accommodate regional and state-specific concerns.
Governor Sule further emphasized that the NGF’s backing of the reforms demonstrates a unified effort by the governors to achieve fiscal equity while maintaining the balance between federal and state interests.
“The discussions surrounding the proposed tax reform bills are intended to uphold President Bola Tinubu’s vision rather than criticize or oppose him,” he added.
The proposed tax reform bills are now awaiting deliberation in the National Assembly, with analysts predicting intense discussions as legislators work to refine the proposals further.
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