June 6, 2025

On Wednesday, the President of the Senate, Godswill Akpabio, stated that the National Assembly’s decision to approve the tax reform bills submitted by President Bola Tinubu was motivated by the national interest. Through his media aide, Eseme Eyiboh, Akpabio explained that the bills were passed after thorough negotiations, extensive stakeholder consultations, and transparent deliberations that prioritized national development above partisan or regional considerations. The legislation approved includes the Joint Revenue Board (Establishment) Bill, Nigeria Revenue Service (Establishment) Bill, Nigeria Tax Administration Bill, and Nigeria Tax Bill — all key components of President Tinubu’s fiscal reform agenda under the Renewed Hope initiative. Originally presented to the National Assembly in November 2024, the bills were adopted by the Senate last week after several months of rigorous debate. “These bills form the cornerstone of the president’s economic reforms,” Akpabio said. “Once enacted, they will enhance Nigeria’s revenue collection system and reform tax administration to promote fairness and efficiency.” The legislative journey was challenging. Akpabio disclosed that early proposals, such as allowing states that generate tax revenue to retain 60% of Value Added Tax (VAT) proceeds, faced strong opposition, especially from northern lawmakers concerned about potential economic disadvantages to their region. A compromise was reached, reducing the retention rate to 30% and substituting the term “derivation” with “place of consumption,” enabling consensus. The bills also encountered resistance from some state governors and internal disagreements within the National Assembly. “There were moments of intense disagreement, even among Senate leaders,” the statement noted. “However, Senator Akpabio’s diplomacy, wisdom, and consensus-building skills were crucial in guiding the process to a positive conclusion.” The former governor of Akwa Ibom also praised his colleagues in both chambers for their support, singling out House Speaker Tajudeen Abbas for effectively rallying younger lawmakers. Additionally, governors who initially opposed the bills were commended for eventually accepting the revised terms. “Their cooperation proved pivotal,” Akpabio remarked. “By easing regional tensions and endorsing the amendments, the governors facilitated wider stakeholder acceptance.” He emphasized that the legislative process was thorough and inclusive, involving public hearings and active stakeholder engagement. The bills are now ready to be sent to the president for assent. “With two years remaining in President Tinubu’s term, this marks a significant milestone,” the Senate President concluded. “Credit is due to all who contributed to this achievement.” For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Sunmola David & CO (Chartered Accountants & Tax Practitioners) at Lagos, Ogun state Nigeria offices, www.sunmoladavid.com. You can also reach us via WhatsApp at +2348038460036.

The Imo State chapter of the Peoples Democratic Party (PDP) has condemned the state’s poor showing in the recently released Value Added Tax (VAT) data for the first quarter of 2025, which ranked Imo 35th out of 36 states, describing it as evidence of a lack of effective economic policies. In a press statement, the PDP spokesperson, Lancelot Obiaku, said the latest figures confirm the party’s previous claims that Governor Hope Uzodinma’s administration has weakened the state’s economy and hindered business and commercial activities through ineffective policies, making Imo unattractive to investors. Obiaku highlighted that Imo contributed only N2.34 billion in VAT revenue to the federation account, the second-lowest among all states, narrowly ahead of Taraba State, which contributed N2.33 billion. He expressed disbelief that Imo performed worse than other Southern states, trailing far behind Anambra State, which generated N10.73 billion, and Ebonyi State, with N7.43 billion. “VAT is a consumption tax levied on goods and services at every stage of production or distribution, paid by consumers but collected by businesses and remitted to the government through the Federal Inland Revenue Service (FIRS). The VAT ratio reflects the level of economic activity and commercial vitality of states and correlates directly with productivity and economic health,” Obiaku explained. “The PDP in Imo State believes this poor performance clearly indicates the dire state of the local business environment and economy. Many businesses are closing down, and the state has failed to attract meaningful investment under Governor Uzodinma’s ineffective leadership,” the statement added. Obiaku recalled that Imo was once the leading hospitality hub in Nigeria but lamented that insecurity has forced 70% of hotels and entertainment venues to shut down. He expressed growing concern over the state government’s lack of a coherent economic plan to reverse this decline. The party further accused Governor Uzodinma of showing little commitment to improving the economy, citing his failure to reside in the state to effectively oversee governance. “How can the economy improve when the governor shows no genuine interest in the state’s development by choosing not to live in Imo? His absence has contributed to the worsening insecurity,” the statement alleged. The PDP also criticized the governor for allegedly controlling resources meant for public welfare and undermining the autonomy of ministries, agencies, parastatals, and local government funds. “The local government system has been weakened. Even the appointed LGA chairmen lack the necessary resources to make an impact because the state government controls their allocations. “Despite receiving an average of N6.5 billion monthly in LGA allocations between January and September 2024, and N8 billion monthly from September 2024 to May 2025—totaling N162 billion in the past 16 months alone—and about N350 billion in previous years, totaling over N500 billion in the last five years, Imo has no significant economy-boosting projects to show for it,” the statement said. The PDP insisted that if there were real developmental projects and a strong economic plan, businesses would be thriving, foreign investments would be flowing in, and VAT revenues would have increased. Obiaku concluded by urging the governor to urgently formulate a solid economic policy to start reviving Imo’s economy. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Sunmola David & CO (Chartered Accountants & Tax Practitioners) at Lagos, Ogun state Nigeria offices, www.sunmoladavid.com. You can also reach us via WhatsApp at +2348038460036.