Mr Ayoola Lawal, the immediate past Secretary of the APC Committee of Diaspora Chairmen, has commended the team leading Nigeria’s Value Added Tax (VAT)
By Oluwatope Lawanson
Mr Ayoola Lawal, the immediate past Secretary of the APC Committee of Diaspora Chairmen, has commended the team leading Nigeria’s Value Added Tax (VAT) reform and wider fiscal policy reforms for their foresight.
The Tax reforms team is led by the Fiscal Policy Partner and Africa Tax Leader at PricewaterhouseCoopers (PwC), Mr Taiwo Oyedele.
Recall that the team had been in the vanguard of the important efforts of reforming the nation’s tax system.
According to Lawal, immediate past chairman of APC in the Scandinavian countries, reforms are bold and necessary step in redressing long-standing fiscal imbalances and catalysing socio-economic development.
“A new VAT sharing formula for the reform provides 50 per cent on equality, 30 per cent on derivation basis, and 20 per cent on population.
“Stakeholders aver that this arrangement reflects the most balanced approach to equity, productivity, and demographic challenges.
“These recommended and accepted adjustments by the governors are a big stride toward enhancing fairness and encouraging productivity,” Lawal stated.
According to him, it is a difficult but essential reform, and the team should be praised for its dedication to the economic future of Nigeria.
He noted that the derivation component introduced, rewarding states that generated more VAT revenue, remained a forward-thinking measure by the team to encourage states to boost economic activity.
“Conversely, provision is made for safety netting of the less economically developed areas by the equal and population-based components.”
Lawal commended the maturity and nationalism flowing from the appreciation by governors of states, whose revenues would be cut back by the new scheme.
He also gave kudos to the understanding of the governors of the broader picture of the reform for national unity and progress.
“It is laudable that these governors are putting the country first, even when it comes at the cost of their instant revenue.
“Their commitment to Nigeria’s progress over regional gains is a testament to true leadership and statesmanship.”
He also expressed optimism about the reform’s potential to modernise Nigeria’s tax laws, improve transparency, and align them with international best practices.
“For instance, by such changes in law, observers argue that this will even better fiscal stability, as these can help enhance an equitable taxing system.
“The reforms are viewed as an opportunity to finance key infrastructural, educational, and health projects.
” This reform in VAT, with the fiscal policies attached to it, is a milestone in Nigeria’s economic policies.
“The reforms testify to the vision put into the change process by the President Bola Tinubu administration and speak volumes about the altruism that drives the process.
“The reforms promise regional development, reduced dependence on federal allocations, and transparent tax systems.”
He said the reform, when properly implemented, would transform the economic life of millions of Nigerians from aspirational to realities in areas of equity, opportunity, and prosperity. (NAN)
