In a firm defense of the proposed tax reform bill, former lawmaker and human rights activist, Senator Shehu Sani has called on Northern governors to rally behind the legislation to address what he describes as “prevailing tax injustice” in Nigeria.
Reacting to revelations made by the Federal Inland Revenue Service (FIRS) Chairman before the House of Representatives, Sani highlighted the concentration of Value Added Tax (VAT) revenues in only four states as a significant inequity in the current tax system.
According to the FIRS Chairman, Lagos, Rivers, Oyo, and the Federal Capital Territory (FCT) collectively generate 70% of VAT revenue in the country. Sani argued that this was unfair, particularly given the nationwide consumption of services taxed in these states.
“Take MTN, for example,” Sani said, referencing the FIRS Chairman’s comments. “Most of its VAT is paid in Lagos, yet its services are consumed in every state. This clearly shows the need for reform.”
Shehu Sani also urged critics of the bill to take a more objective stance, dismissing what he called politically motivated opposition. “I still admonish the critics of the bill to remove their political lenses and read the document thoroughly,” he wrote on X, formerly Twitter.
Shehu Sani emphasized that the proposed reforms are designed to ensure fairness and equitable resource distribution across all states. “The bill will ensure equity, fairness, and allocate more resources to all other states,” he stated.
He rejected claims that the reform bill contains contentious provisions, asserting, “All the sentiments raised against the bill are not contained in the bill. The bill should be supported to end the prevailing tax injustice in the country.”
Shehu Sani’s appeal to Northern governors comes amid growing debates over the tax reform bill, which some critics fear could disrupt state economies. However, advocates like Sani believe it represents a vital step toward addressing structural inequities in the nation’s fiscal framework.
The bill is expected to undergo further legislative scrutiny in the coming weeks.
