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Dr Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), has been hailed for his impact in earning the Nigeria Governors' Forum (NGF) 's vote of confidence in endorsing the Tax Reform Bills on January 16, 2025.
The FIRS boss earned this glowing tribute from Arabinrin Aderonke Atoyebi, a tax analyst who described him as "a man of steel" with unyielding resolve.
The endorsement, announced in a communiqué on Thursday, January 16, 2025, signals a transformative shift in Nigeria's fiscal landscape.
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A Bold Vision for Fiscal Equity
The four bills—the Nigeria Tax Bill, the Nigeria Revenue Service (Establishment) Bill, the Nigeria Tax Administration Bill, and the Joint Revenue Board (Establishment) Bill—aim to streamline tax collection and enhance compliance nationwide.
"This is more than just revenue collection; it's about creating a fair system that serves every Nigerian," Arabinrin Aderonke Atoyebi, a tax analyst, noted in her recent piece.
The NGF's communiqué is seen as a declaration of unity and progress, signalling a shift toward modernising Nigeria's tax system.
"We've all witnessed the difficulties of an outdated system. This reform offers a renewed sense of hope," Atoyebi added.
A revamped Value Added Tax (VAT) distribution formula is key to the reform. Under the new system, 50% of VAT revenue will be shared equally among states, 30% based on derivation, and 20% according to population.
This approach addresses long-standing concerns about fairness and equity.
"This formula reflects Nigeria's diversity while ensuring justice in revenue allocation," Atoyebi emphasised.
Navigating Challenges with Resilience
However, the journey was not without challenges. Some governors initially expressed apprehension, particularly regarding tax policies impacting natural resources such as oil and gas. These concerns were met with extensive dialogues led by Adedeji and his team.
"They listened, engaged, and demonstrated that these reforms are about building a better future for every region in Nigeria," Atoyebi said.
The NGF's backing comes with commitments to maintain existing tax rates, exempt essential goods from VAT, and prioritise long-term economic stability. According to Atoyebi, this milestone underscores Adedeji's resilience.
"He has proven that determination can overcome any challenge," she remarked, hailing him as a leader with a vision for national development.