- Afenifere expressed support for Nigeria's proposed tax reforms, seeing them as vital for boosting economic growth and improving public services
- Afenifere also backed reforms that align VAT distribution with consumption patterns, ensuring equitable funding for states based on economic activity
- The pan-Yoruba group further stressed that the tax reforms will benefit all Nigerians, including those in the northern regions, by enhancing infrastructure and services
Afenifere, a popular pan-Yoruba socio-political organisation, has officially expressed its support for the proposed tax reform bills in Nigeria.
The group sees the reforms as a crucial step toward boosting Nigeria's economic growth, particularly in the areas of revenue generation, infrastructure funding, and public service delivery.
Afenifere highlighted that the proposed tax reforms offer significant potential for Nigeria's economic revival. The group believes that the new policies will help stimulate the economy by improving revenue collection, which is essential for supporting critical infrastructure projects and social services across the country.
According to Afenifere's Organising Secretary, Abagun Omololu, the tax reform bills are designed to improve revenue generation both at the federal and state levels. This is particularly important in a country like Nigeria, where there has been a growing need for more effective and equitable fiscal policies to finance national development. With an enhanced tax system, the government will be better equipped to fund public services such as healthcare, education, and transportation.
One of the key components of the tax reform involves changes to the Value Added Tax (VAT) administration. Afenifere supports the idea of aligning revenue distribution with consumption patterns rather than historical allocations.
This means that states would receive funding based on actual economic activity and the level of consumption within their regions. Afenifere believes this shift will ensure that resources are allocated more fairly and efficiently, ensuring that states with higher levels of economic activity are better funded.
Afenifere stressed that the tax reforms are not region-specific but will benefit all Nigerians, including those in the northern parts of the country. While the organization is a Yoruba-centric group, it emphasised that the tax system reforms are inclusive and designed to address the broader needs of the nation.
Afenifere recognises that all regions, including the northern states, will experience positive outcomes from the new system, such as improved public services and infrastructure development.
Afenifere believes that the tax reform could have long-term benefits for Nigeria’s economic trajectory, especially if the reforms lead to a more sustainable and predictable fiscal environment.
By broadening the tax base, Nigeria could potentially increase its revenue generation capacity, making it less reliant on oil exports and more resilient in the face of economic shocks.
The group’s endorsement is based on a thorough analysis of the proposed bills, reflecting Afenifere’s commitment to national development. Their backing of the tax reforms underscores their belief in a better future for Nigeria, where equitable wealth distribution and improved resource management are key to tackling the nation’s infrastructure and social service challenges.
Afenifere’s support for the tax reform bills reflects its belief that Nigeria’s current tax system needs an overhaul to better match the economic realities of the country. By endorsing the tax reforms, Afenifere is advocating for a system that will increase national revenue, promote fairness in resource distribution, and contribute to the development of both infrastructure and social services that will benefit Nigerians across all regions, including the North.
This support marks a significant move toward a more inclusive and sustainable economic model for Nigeria.
VAT rate hasn’t been increased, remains 7.5%, Finance Minister Edun clarifies
Meanwhile, TheRadar reported that the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, says the rate for Value-Added Tax (VAT) has not been increased but remains 7.5 per cent as contained in the relevant tax laws and chargeable on goods and services.
In a statement on Monday, September 9, Edun debunked reports that the VAT rate has been upwardly adjusted to 10 per cent from 7.5 per cent.
