A political science scholar at the Lead City University, Ibadan, Prof. Akeem Amodu, on Tuesday, lauded President Bola Tinubu for standing firm on his tax reforms.

Amodu was reacting to the media chat where Tinubu said there was no going back on tax reforms.

The professor said the elimination of fuel subsidies had freed up substantial government funds, adding that the step would allow for investment in critical infrastructure and social services, energy in particular.

Amodu said: “Permit me to focus on two key far-reaching themes from the presidential chat; oil subsidy removal and tax reforms.

“Now, the elimination of fuel subsidies has freed up substantial government funds. This should allow for investment in critical infrastructure and social services, energy in particular.

“The immediate effect of the oil subsidy removal has been an increase in fuel prices, which exacerbated inflation and reduced disposable income for citizens.”

He said in subsequent presidential chats, one would expect focused discussion on what the administration is doing, or has done, to ensure that the savings from subsidy removal are transparently redirected towards projects that promote sustainable economic growth and benefit the broader population.

Amodu added that President Tinubu’s assertion that “tax reform is here to stay,” indicates a commitment to overhauling Nigeria’s tax system to enhance revenue generation in the face of the debate which the issue of reallocation of Value Added Tax (VAT) revenue had ignited of late; and, also despite the expressed fears from some northern governors that the proposed reform could exacerbate regional economic disparities.

He added: “Without doubt, however, and also looking at the issue objectively, a more efficient and equitable tax system will increase government revenue and reduce reliance on oil. I stand with the President on this.

“The tax reform in my view is foundational to creating the much needed diversified economy. The President could have however used the opportunity of the platform to further persuade and allay the fears of regions and demographics opposed to the proposed tax reforms.”