As the National Assembly reviews the proposed tax reforms, the Citizens Network for Peace and Development in Nigeria (CNPD) has raised objections to the Nigeria Governors Forum’s (NGF) suggested VAT sharing formula, which allocates 50% based on equity, 30% on derivation, and 20% on population.
At a press conference in Abuja, CNPD’s National Coordinator, Mr. Okorie Ikechukwu Raphael, argued that the formula proposed by the NGF fails to factor in productivity and economic growth, key elements in determining a state’s contribution to the national economy.
CNPD warned that this omission could unfairly disadvantage states that are working hard to diversify their economies and drive growth.
The group called on the National Assembly to reconsider the formula and adopt a more balanced approach that rewards states based on their productivity and economic progress.
While expressing concerns about the proposed VAT formula, CNPD acknowledged the potential of the tax reform bills to redirect revenues from taxation into vital sectors like education, healthcare, and rural development, which could help reduce poverty and inequality.
“We fully support the inclusive nature of the proposed tax reform,” the group said.
“This reform is designed to stimulate small and medium enterprises (SMEs), support grassroots entrepreneurship, and promote economic diversification, all of which are essential for long-term sustainable growth.”
CNPD particularly commended the provisions of the Tax Reform Bill that exempt individuals and households earning less than ₦1 million per year, as well as companies with annual earnings below ₦50 million, from taxation.
The group described this as a significant move to alleviate poverty and encourage economic inclusivity.
By shielding low-income earners and small businesses from heavy taxes, CNPD believes the reform will foster job creation, boost economic growth, and improve living standards.
The group strongly advocates for the swift passage of the Tax Reform Bill to benefit the country’s most vulnerable populations.
Praising President Bola Ahmed Tinubu and his economic team for their vision behind the reform, CNPD emphasized that if implemented with transparency and fairness, the Tax Reform Bill could become a vital tool for poverty reduction and equitable economic redistribution in Nigeria.
The group urged the National Assembly to prioritize the interests of the common people, noting that the tax reform should not be subjected to political or regional disputes.
They stressed the importance of unity and shared responsibility, stating that what impacts one Nigerian affects all.
CNPD further called for support for the democratic process and encouraged citizens to participate in the upcoming Public Hearing stage to contribute their views on the proposed reforms.
They urged those advocating for changes to rethink their positions and allow the legislative process to proceed without hindrance.
