Nasarawa State Governor, Abdullahi Sule, has described the proposed tax reform bills initiated by President Bola Tinubu as transformative, especially for northern Nigeria.
In a recent interview on Politics Today aired on Channels TV, Governor Sule highlighted the profound impact of the reforms, particularly the revised Value-Added Tax (VAT) distribution formula, which he believes will promote greater fairness and fiscal balance nationwide.
“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,” he stated.
Initially met with caution by the Nigerian Governors Forum (NGF), the reforms have now garnered the group’s full support following assurances from President Tinubu’s Tax Reform Committee, led by Taiwo Oyedele.
Governor Sule revealed that the NGF’s endorsement came after exhaustive deliberations and critical adjustments to ensure the framework accommodates the diverse concerns of states and regions.
He stressed that the collective support of the governors underscores a shared commitment to achieving fiscal equity while balancing 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 affirmed.
As the proposed reforms move to the National Assembly, analysts anticipate robust debates as legislators work to refine the proposals and address critical nuances.