…As Oyedele Says Northern Governors Were Consulted On Tax Reform
By Charles Ebi
Bishop Mathew Hassan Kukah, founder of the Kukah Centre, has expressed optimism that the tax reform bills introduced by President Bola Tinubu’s administration could curb financial mismanagement by Nigeria’s elites .
Speaking on Channels Television, the cleric urged the Federal Government to ensure the reforms contribute to national development.
Kukah highlighted the potential of the reforms to address systemic dysfunction and inefficiencies in the country, calling for constructive engagement to implement them effectively.
He stressed that Nigeria’s wealth should no longer be squandered by elites at the expense of ordinary citizens.
“These reforms should end the narrative of Nigerians living in a richly endowed country but remaining spectators to the irresponsibility of elites who mismanage our resources”, he said.
Kukah described the bill as a step toward improving fiscal management and fostering the nation’s growth.
The tax reform bills, which have been submitted to the National Assembly, have faced criticism across the country. Some argue they disproportionately target northern regions, while others fear they will impose an excessive burden on citizens already grappling with poverty.
Kukah emphasized the need for the government to improve communication about the reforms to build public trust and understanding.
“Nigerians need to be convinced there is light at the end of the tunnel”, he said, adding that government spokespersons should focus on clearly articulating the purpose and expected outcomes of the reforms.
He also noted that frustrations among citizens, exacerbated by widespread poverty, must be addressed with urgency.
“The government must respond to the massive impoverishment in the country. People are frustrated, and they need assurance that these reforms will bring tangible benefits”, Kukah added.
The Bishop advised the administration to avoid trading blames or lamenting the state of the nation inherited from previous government.
“By now, Nigerians are tired of hearing excuses. Leaders must focus on solving problems and ensuring progress”, he said.
Kukah commended the government’s efforts, such as plans to revive the Port Harcourt Refinery, but reiterated the importance of clear timelines and actionable strategies to rebuild public confidence.
Meanwhile, the Chairman, Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has said that governor’s from the Northern region can not deny that they were not consulted by the committee on the controversial Tax Reform Bill.
Oyedele said this during a Town Hall meeting on Tax Reform Bills organised by Channels TV.
The tax expert made the comment following disapproval of the Value Added Tax component of the reform by Northern elites.
The Northern elites including governors and some lawmakers are opposing the bills, citing it short changed the North and favours Lagos State. Senator Ali Ndume and, most recently, the Governor of Borno State, Babagana Umara Zulum are among the critics of the bills.
The Nigeria Tax Administration Bill under Section 77, proposes a reduction of VAT distributable to the federal government from 15% to 10% . The bill also concedes 55% to state governments and 35% to the local government councils.
On sharing modality, it recommends that 60% shall be distributed on the basis of derivation consistent with Section 22(12) of the Bill.
The new VAT provision aims to redistribute VAT based on consumption metrics.
In defence, Oyedele said, “This is not rushing at all. We consulted. We had one session with the governors forum. They won’t say we didn’t consult them. They’re saying we need to consult more, which we agree with. Because since then, we never end. Even after passing the bills, we must continue to consult.
“We had two sessions with the National Economic Council. We had almost a whole day with the finance commissioners from all over Nigeria. We’ve had at least four sessions with the head of the internal revenue service from all the 36 states plus the FCT.
“We’ve reached out to six geopolitical zones. We identified one governor per zone to go and meet them where they are with their cabinet and discuss. We did some of that.
“Some of them did not have time for us. We work for more than six months. We always welcome opportunities to engage, but it is not correct to say that we did not consult”.
On the establishment of the Nigeria Revenue Service by repealing the Federal Inland Revenue Service ,FIRS, Act and empowering the new establishment as the only revenue collector, Oyedele said it is designed for effective revenue collection.
He said, “In fact, the entire revenue we are collecting in Nigeria today is less than 20% of what South Africa revenue service is collecting. We do not lack capacity in Nigeria.
“We are not introducing new taxes. So the clear answer to your question is, we have not recommended, we have no such powers, it was not within our mandate, the scrapping of any agency.
“So this is never about an individual, it’s about the institution. And if you look around the world, start from Africa, Ghana revenue authority, Canada revenue service, South African revenue service, go outside Nigeria, HM Revenue & Customs ,HMRC, in fact, in many countries, those revenue agencies collect social security.
“If you go to Rwanda, and you want to do your driver license, is the revenue authority that collected, why? Because they have been set up to collect revenue. So they have the system, they have the structure, they have the training, they have the experience, they have the capacity.
“What we are doing in Nigeria is, at the federal government level, we have over 60 agencies of government with revenue targets. First, they’re distracted from their primary mandate, many of them forget why they were set up, and they are chasing revenue to the detriment of the economy
