By Abiola Olawale
President Bola Ahmed Tinubu has commended Nigerian governors for their support towards tax reform initiatives.
The President described the development as a significant step forward in Nigeria’s fiscal policy landscape.
The commendation comes after a series of discussions and meetings, where governors have thrown their weight behind the tax reform bills submitted to the National Assembly by Tinubu.
The governors, who made this decision known on Thursday, however, proposed a new Value Added Tax (VAT) sharing formula.
The governor’s decision follows a period where there was notable resistance, particularly from northern governors, who initially opposed the tax reform bills due to concerns over regional economic impacts.
Meanwhile, following a positive reception by the governors, Tinubu declared that the development signifies an important moment for Nigeria’s fiscal policy.
This was contained in a press statement issued by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, on Friday.
The statement reads in part: “President Bola Tinubu expresses his appreciation for the Nigeria Governors’ Forum following their unanimous endorsement of the four Tax Reform Bills currently under consideration by the National Assembly.
“President Tinubu lauds the governors for their bold leadership and commitment to fostering unity among leaders nationwide, transcending regional, ethnic, and political barriers to advance Nigeria’s development.
“Thursday’s productive consultation between the Nigeria Governors’ Forum and the Presidential Committee on Tax and Fiscal Policy is a commendable example of cooperation between the Federal and State governments.
“He extends special commendations to the Chairman of the Governors’ Forum, Kwara State Governor Abdulrahman AbdulRazaq, for successfully galvanizing support among his peers for these transformative tax bills to rejuvenate the national economy and enhance Nigeria’s investment climate.
“He also commends the Progressive Governors Forum, the Northern Governors Forum, and all other groups that made the bipartisan resolution of the controversy stirred by the tax bills possible.
“President Tinubu underscores that the primary aim of the Tax Reform Bills, which is pro-poor, is to promote national interests, improve the competitiveness of Nigeria’s economy, and attract both local and foreign investments.
“He said updating the country’s outdated tax laws is essential to this endeavor.
“The President notes that the dialogue between the NGF and the Presidential Committee on Tax and Fiscal Policy Reform highlights the power of constructive conversation in resolving differences.
“President Tinubu regards the governors as vital contributors to nation-building and affirms his commitment to partnering with them to promote economic growth, national harmony, peace, and stability.
“He also encourages other stakeholders with ideas and suggestions for refining the Tax Bills to engage with the ongoing legislative process at the National Assembly.
“Finally, President Tinubu urges the National Assembly to expedite the legislative process for these crucial bills so that the country can swiftly reap the benefits of the reforms.”
