The federal government has firmly rejected claims that the proposed tax reform bills are designed to marginalise Nigeria’s northern region, stressing that the bills are intended to foster national growth and fiscal sustainability.
Speaking on Politics on Sunday, December 8, a TVC programme, the Secretary to the Government of the Federation (SGF), Senator George Akume, described the reforms as “pro-poor” and “nationalistic.” He urged critics to assess the bills’ intent objectively instead of politicising them.
“These bills are not targeted at any section of the country,” Akume said.
“I am from the north, and I am 100% supportive of these bills. They followed a proper legislative process, from the Federal Executive Council (FEC) to the Attorney General of the Federation (AGF), and finally to the National Assembly.”
Akume highlighted several provisions of the reform that aim to benefit the most vulnerable sectors of society. Individuals earning below ₦800,000 annually, along with small businesses with revenues under ₦550 million, will be exempt from taxes. Additionally, sectors such as education and healthcare will remain exempt from Value-Added Tax (VAT).
“These provisions clearly show that the bills are designed to support the poor and encourage economic growth,” Akume explained.
The SGF also criticised the opposition for misrepresenting the purpose of the reforms.
He pointed out that many of those opposing the bills had likely not read them and were simply attacking the legislation for political gain.
“Some are arguing against these bills purely from an opposition perspective, hoping to rally support by spreading misinformation,” he said.
Akume further stressed that the reforms would ensure more equitable revenue distribution, particularly benefiting northern states and local governments. Under the new arrangement, states will receive 55% of generated revenues, while local governments will get 35%. With the northern region having a larger number of states and local governments, it stands to gain significantly from these reforms.
“States and local governments in the north will particularly benefit from the new revenue-sharing framework,” he said.
The SGF reiterated the importance of the bills in modernising the country’s tax system, which has remained largely unchanged for over five decades. He urged Nigerians to focus on the broader objectives of the reforms, including enhancing fiscal stability and promoting economic growth.
“For over 50 years, no attempt has been made to reform our tax system despite its outdated nature. These bills aim to ensure maximum value for the people and move the economy towards prosperity,” Akume stated.
While acknowledging the growing resistance to the reforms, Akume attributed it partly to ineffective communication and urged critics to raise concerns through proper channels such as public hearings, rather than resorting to protests.
“Protests do not advance the cause of peace or discourage those who support these reforms,” he said.
Reaffirming his faith in the democratic process, Akume expressed confidence that a consensus would eventually emerge to address any outstanding issues with the bills.
“Democracy allows for dialogue, and I believe the circumstances will lead to a consensus. Let’s give these bills a chance and see how they can enhance our fiscal sustainability and drive economic growth,” he concluded.