By Chidiebere Nwabueze Udekwe
The tax reform bills currently under consideration by the National Assembly offer a historic opportunity to reshape Nigeria’s fiscal landscape for sustainable growth and equitable development. For the Southeast, these reforms carry the potential to address longstanding economic disparities, catalyze growth, and foster prosperity. As Otu Oka-Iwu Abuja, we present this position paper to highlight the benefits of these reforms for the Southeast and to extend a cordial invitation to the Southeast Caucus of the National Assembly for collaborative efforts toward ensuring their successful implementation.
Overview of the Tax Reform Bill
The tax reform bill introduced by President Bola Ahmed Tinubu represents a significant overhaul of Nigeria’s tax system. It aims to simplify tax processes, expand the tax base, and enhance fairness and transparency in tax administration. Key provisions of the bill include:
1. Simplification of Tax Laws
Consolidating various tax laws into a single framework to reduce complexity, ease compliance, and eliminate redundancies.
2. Broadening the Tax Base
Including previously untaxed sectors and ensuring equitable participation to increase government revenue without overburdening existing taxpayers.
3. Fair Tax Administration
Establishing a Joint Revenue Board and tax tribunals to ensure fairness, transparency, and accountability in tax collection and dispute resolution.
4. Value-Added Tax (VAT) Reforms
Gradual increases in VAT rates from 7.5% to 15% by 2030, alongside a revised revenue-sharing formula to allocate more funds to states based on contributions.
5. Tax Incentives and Exemptions
Exempting essential services—such as healthcare, education, food, and transportation—from tax burdens while incentivizing small and medium enterprises (SMEs) and businesses.
Opportunities for the Southeast
The Southeast stands to benefit significantly from these reforms through targeted application and implementation that address the region’s unique challenges and opportunities:
1. Economic Growth and Investment
• Increased Investments: Simplified tax processes and incentives will attract local and foreign investments to the region.
• Job Creation: New businesses and industries will generate employment, reducing unemployment and driving economic growth.
2. Infrastructure Development
• Improved Connectivity: Additional government revenue can fund infrastructure projects such as roads, railways, and ports, enhancing interregional trade and commerce.
• Enhanced Public Services: Increased resources for healthcare, education, and utilities will uplift living standards across the Southeast.
3. Equitable Resource Allocation
• The proposed revenue-sharing reforms offer the Southeast a fairer share of national resources, addressing historical imbalances and ensuring inclusive development.
4. Support for SMEs
• The Southeast’s entrepreneurial hub will benefit from tax incentives, reduced compliance costs, and improved access to financing for small businesses, driving innovation and economic resilience.
5. Enhanced Regional Competitiveness
• A thriving economy will attract skilled professionals and boost the region’s capacity to compete in national and global markets.
Our Commitment to Collaboration
As Otu Oka-Iwu Abuja, we recognize the importance of synergy between stakeholders to maximize the benefits of these reforms. We propose a partnership with the Southeast Caucus of the National Assembly to achieve the following objectives:
1. Advancing Regional Interests
By leveraging our expertise, we aim to support legislative efforts in advocating for provisions that align with the Southeast’s economic and infrastructural priorities.
2. Establishing the Otu Oka-Iwu National Assembly Forum
A dedicated platform for critical engagement and analysis of the tax reform bills, enabling informed decisions that protect and promote the interests of Ndi Igbo.
3. Public Sensitization and Consensus Building
Collaborating on awareness campaigns to address misconceptions, build public support, and ensure smooth implementation of the reforms.
Call to Action
We commend the Southeast Caucus for its dedication to legislative excellence and its commitment to advancing the region’s welfare. As advocates of justice and equitable development, we invite the Caucus to join hands with us in formulating strategies and presenting robust proposals that ensure the Southeast maximally benefits from these reforms.
We acknowledge the immense expertise within the Caucus and understand the significant efforts already being undertaken to review and refine the bills. However, we believe that our collaborative input can add a valuable perspective to strengthen these efforts further.
The Southeast stands at a pivotal moment to shape its future. Together, through strategic legislative engagement and advocacy, we can secure a tax framework that delivers growth, equity, and prosperity for our people.
Conclusion
The tax reform bills represent a transformative opportunity for Nigeria, and the Southeast must seize this moment to unlock its full potential. Through collaboration, transparency, and a commitment to equity, we can ensure these reforms address the region’s unique needs while contributing to national development.
We look forward to working closely with the Southeast Caucus of the National Assembly to champion the collective interests of Ndi Igbo and build a brighter future for all.
Otu Oka-Iwu, Onye Aghana Nwanneya!
Chidiebere Nwabueze Udekwe
President, Otu Oka-Iwu Abuja
