The Managing Director of the Niger Delta Development Commission (NDDC,) Dr Samuel Ogbuku, has stated that states and Local Governments will benefit more from the new tax reform proposed by President Bola Tinubu’s administration.
Ogbuku, who spoke during an interview with newsmen in Port Harcourt, explained that the “tax reform seeks a new sharing formula in which the Federal government receives just 10% from VAT, conceding 55 per cent and 35 per cent to the state and local governments, respectively.
He commended President Tinubu for the tax reform initiative, stating: “The four tax reform bills, namely, the Joint Revenue Board of Nigeria (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024; Nigeria Tax Administration Bill, 2024; and Nigeria Tax Bill, 2024, represents a monumental shift in our fiscal landscape.”
The NDDC Chief Executive Officer appealed to Nigerians to continue supporting President Tinubu’s ‘Renewed Hope’ agenda for the country’s socio-economic growth and development.
He further explained that tax reforms would grant exemptions on certain commodities, such as food items, to avert the high cost of feeding. “Small businesses, education, health care, and low-income earners will also be granted exemptions,” he noted.
Ogbuku observed: “The new tax will reduce state government’s dependence on the Federal Government and encourage governors to look inward to generate more income for their states from their respective areas of competitive advantage.
“The tax reform bill is a practical and effective fiscal restructuring for Nigeria. No one who understands this will oppose it. President Tinubu deserves everyone’s support on this. Reforms such as this are long overdue. I wish he had started with this reform before removing subsidies and floating the naira. In any case, it’s better late than never.”
Ogbuku urged all Nigerians, especially those in public office, to engage effectively with the Tinubu administration’s economic reforms. He remarked that the initiative was the first comprehensive tax reform since Nigeria’s independence, presenting a transformative opportunity to rejuvenate small and medium enterprises and enhance the livelihoods of ordinary Nigerians.
The NDDC boss expressed optimism that the reforms would improve Nigeria’s revenue profile and create a more conducive and internationally competitive business environment supporting sustainable development.
He assured that the tax reforms would fix the economy in a way that there would be shared prosperity in the states and local governments across the country.
