Northern Governors Oppose Tinubu’s Tax Reform Bills Over Perceived Misunderstandings

Speaking to journalists in Lagos on Tuesday, Egoh urged the governors to seek further clarification on the provisions of the bills rather than opposing them outright.

Egoh noted that opposition from some Northern governors stems from a lack of understanding of the bills. He explained that the reforms aim to simplify tax collection and streamline tax laws nationwide, ultimately benefiting all states.

“Some governments in the north condemned President Tinubu’s tax bill because they do not understand it,” Egoh said. “Some of the governors said that it will make their states poorer. However, the purpose of the tax reform bills is to ease tax collection, unify existing tax laws, and ensure more revenue is generated across the states.”TOP SECRET REVEALED! WATCH THE DOCUMENTARY THAT HAS BEEN HIDDEN FOR YEARS ON HOW ASO ROCK WAS BUILT, AND THE SECRET POWER BEHIND IT, WHY IT HARD FOR POWER HANDLERS TO BUILD THE COUNTRY.

Egoh highlighted that the reforms would boost revenue collection, allowing more funds to be distributed to states and invested in capital projects. He pointed out that the proposed changes would result in less money being remitted to the federal government, with a larger percentage going directly to the states.

He argued that if implemented correctly, no state would become poorer under the new system. “What worries some governors about the reform is that Lagos State will get more money due to its high revenue collection. However, this should not matter because Lagos does not benefit from petroleum derivation funds,” Egoh explained.

He added, “Lagos State’s budget is the highest in the federation because of its strong internally generated revenue (IGR), which surpasses the combined revenue of 10 states. Other states should work harder to improve their IGR. The same tax principles apply across all states.”

Egoh emphasized the importance of economic activity in driving tax revenue. “The more economic activity a state has, the more VAT it will collect. This reform should motivate state governments to invest in their local economies to increase VAT collections,” he said.

According to Egoh, the proposed system would allocate over 60 percent of VAT revenue to the states, with the balance going into the federated account for equitable distribution. He also pointed out disparities in economic and population dynamics among states, citing examples like Ekiti and Ebonyi, which might collect less VAT compared to states like Kano with larger populations and economic activities.

“Every state has its unique economic strengths. For example, there are significant agricultural products in the north from which VAT can be generated,” he added.

Egoh urged state governments to support President Tinubu’s vision for tax reform, describing it as a pivotal step toward national development. “Let’s give Mr. President a chance to change the narrative and drive progress in the country through better VAT collection and revenue distribution,” he said.TOP SECRET REVEALED! WATCH THE DOCUMENTARY THAT HAS BEEN HIDDEN FOR YEARS ON HOW ASO ROCK WAS BUILT, AND THE SECRET POWER BEHIND IT, WHY IT HARD FOR POWER HANDLERS TO BUILD THE COUNTRY.

The former lawmaker’s remarks come as debates over the proposed tax reforms continue, with stakeholders across the country weighing in on their potential impact on Nigeria’s economy....Tap To Read The Full Story Here.