Your Excellencies, Governors of Northern Nigeria states,
I write to you with a imaginative and prescient all of us share: constructing a affluent, honest, and united Nigeria. It’s comprehensible to have issues concerning the latest Tax Reform Invoice, particularly concerning the proposed shift to a derivation-based mannequin for VAT distribution and the way it may influence Northern states.
Nevertheless, trying extra carefully at this reform reveals alternatives to profit not solely Northern states but in addition all the nation. I imagine that together with your management and help, this reform might unlock alternatives that advance the North’s development and empower its communities. I want to share some views on the imaginative and prescient and advantages of this reform.
The aim of this reform, in keeping with Dr. Zacch Adedeji, Govt Chairman, Federal Inland Income Service, backed by the Federal Authorities, is to not create new taxes or burden the on a regular basis citizen. He states, and I quote, “This reform is about taxing prosperity, not poverty.” In clearer phrases, the reform is designed to make sure that these with higher means and income contribute pretty whereas additionally lowering redundant taxes that influence small companies and native communities. This streamlined method gives simplicity, making tax compliance simpler and extra environment friendly for companies, farmers, and merchants alike, thereby permitting our native enterprises to develop with out pointless hindrances.
What does this imply for Northern Nigeria? In sensible phrases, a derivation-based VAT mannequin would redirect funds from items and providers generated regionally again into the communities that produce them. It additionally means sources collected within the North can be reinvested straight into Northern infrastructure like roads, colleges, hospitals, and different growth tasks. Such reinvestment has the ability to create an actual influence: stimulating native companies, attracting new industries, and producing extra wealth inside the area over time. This mannequin is a chance for sustained development that advantages each communities and the native financial system in a significant manner.
Prior to now, VAT income has been centralized, however this reform gives a brand new route, permitting every state to realize extra from its personal financial actions. A localized VAT mannequin values the strengths and contributions every area brings to the nation and ensures that these efforts profit native communities straight. It’s a solution to help every state’s development and permit funds collected inside a state to have a higher influence on its residents. I perceive your concern however the brand new invoice will assist in growing the area right into a affluent North when you look inward consistent with the next: One, it would strengthen North the extra to deal with a number of the issues they’ve comparative benefit of and make them stronger. Two, it would make the North to be extra inventive in growing what they’ve, as a substitute of counting on different part of the nation for progress and growth. Third, it would additionally make the North look inwards into their means and functionality to develop themselves.
Moreover, the reform seeks to determine transparency and accountability in tax administration, addressing previous inefficiencies which have created mistrust within the system. A extra clear framework assures that taxpayers can see tangible enhancements from their contributions. Dr. Zacch, once more, has mentioned, and I quote, “That is a few fairer, easier tax system that not solely empowers companies but in addition respects and values taxpayers’ contributions.”
Let’s not neglect, the Renewed Hope Agenda of President Bola Tinubu seeks to deliver transformation that empowers each area. The proposed tax reforms align with this imaginative and prescient by making a tax system that’s environment friendly, clear, and geared towards prosperity.
So, as trusted leaders, I encourage you to contemplate these reforms not just for the current however for the potential they unlock for a affluent Northern Nigeria. Collectively, together with your steerage and affect, we will pave the way in which for a Nigeria the place all areas really feel seen, valued, and pretty handled. This invoice gives a basis on which to construct a stronger North and a unified Nigeria.
Thanks.
With respect and hope for a brighter tomorrow,
Arabinrin Aderonke Atoyebi.
Arabinrin Aderonke, award-winning investigative, is the Technical Assistant, Broadcast Media to the Govt Chairman of the Federal Inland Income Service (FIRS). She writes from Abuja_
