• Region’s students urge FG to halt VAT increase, reject tax bills
Chieftain of the All Progressives Congress (APC), Sen Peter Nwaoboshi, has urged President Bola Tinubu to heed Northern leaders’ concerns about the proposed tax reform bills.

Also, the Coalition of Northern Groups (CNG) Students’ Wing in Yobe State called on the Federal Government to halt the proposed increase in the Value Added Tax (VAT) and reduce the current rate to three per cent.
In an interview with reporters, Nwaoboshi, the former chairman of the Peoples Democratic Party (PDP) in Delta State emphasised the importance of inclusivity and transparency in implementing far-reaching economic policies.

Nwaoboshi, who once represented Delta North in the Red Chamber, expressed support for the bills, recognising them as long-due measures to fortify Nigeria’s fiscal framework.

“These reforms aim to widen the tax base, curb tax evasion and boost revenue generation, ultimately enhancing the country’s economic stability. They are crucial for funding public goods and services, reducing our dependence on oil revenues, and driving economic growth,” he stated.

However, he cautioned that the concerns raised by Northern governors and other stakeholders should not be overlooked.

“The states in the North have expressed legitimate fears about the potential impact of these reforms, given their limited resources compared to other regions. Their input is vital to ensure that the reforms are equitable and do not disproportionately burden any particular segment of society. Government exists for the people, and we must listen to their voices,” Nwaoboshi remarked.

He drew a parallel between the ongoing debate and the resource control movement championed by former Governor of Delta State, James Ibori.

Nwaoboshi cautioned that similar apprehensions surrounding the tax reforms must be addressed to prevent national disintegration.

He added, “My primary concern is preserving Nigeria’s unity. We cannot afford to dismiss the reservations of our Northern brothers. Instead, we must engage in open, honest and inclusive discussions to create a tax system that promotes fairness and national cohesion,” he said.

On the broader economic reforms implemented by Tinubu, he lauded the administration’s bold initiatives, including the removal of fuel subsidies and the unification of exchange rates.

“These are difficult but necessary steps to revitalise our economy. They will attract foreign investment, boost economic competitiveness and ultimately create jobs and reduce poverty,” he stated.

The former lawmaker, however, acknowledged the immediate challenges faced by Nigerians due to rising living costs and urged the Tinubu government to prioritise social welfare programmes to cushion the effects of the reforms on vulnerable populations.

THE coalition unanimously rejected the proposed Tax Reform Bills, citing their lack of inclusivity and potential adverse effects on various regions and sectors.

In a statement signed by the Coordinator, Adamu Galadima, the coalition underscored that reducing VAT would provide much-needed economic relief and foster business growth, especially in the light of the challenges posed by subsidy removal and exchange rate unification.

The appeal was made during a town hall meeting at Federal University, Damaturu, focused on the implications of the Tax Reform Bills on Nigerians, particularly students, with the theme, ‘Reform Bills: A Catalyst for Economic Growth or a Burden on the People’, which gathered over 97 youth and student groups.

The coalition called on the Federal Government to withdraw the bills and adopt a more inclusive and people-centred approach to reforms.

Galadima said: “The Federal Government should halt the proposed VAT increase and instead reduce the current VAT rate to three per cent. This reduction will provide relief to citizens and businesses while encouraging economic activity. Alternative revenue-generating strategies must be explored to avoid placing additional financial pressure on ordinary Nigerians.

“The proposed tax reform bill is unanimously rejected due to its lack of inclusivity and potential negative impact on various regions and sectors. The reforms must undergo thorough consultation with all regions and key stakeholders, including civil society organisations, educational institutions and local councils, to ensure a consensus-driven and equitable approach.”