Tinubu’s reforms painful but necessary – BUA chairman

The Chairman of BUA Group, Alhaji Abdulsamad Rabiu, has urged Nigerians to exercise patience with President Bola Tinubu despite the current harsh economic situation.

Rabiu acknowledged that some of the reforms introduced by Tinubu’s administration have been tough and painful but stressed their necessity for achieving long-term economic stability in Nigeria.

“It’s true that some of them are quite painful, but we need these reforms, especially the foreign exchange unification,” Rabiu stated, expressing confidence that the country’s economy is on the path to recovery.

He made these remarks on Friday during a chat with State House Correspondents after the Juma’at prayer with Tinubu in Lagos.

“As you will remember, the exchange rate was N500, and then outside it was N800, which was unacceptable,” Rabiu noted.

“Now, the exchange rate has been unified, and although it was initially difficult, with rates reaching nearly N2,000 at one point, it is now stabilizing at about N1,500 to N1,550. I’m confident that we’ll see the rate come down even further.”

According to Rabiu, the president is making significant efforts to ensure stability across all sectors of the economy.

“We can see the improvements in infrastructure, with a lot of road works underway. Given some time, I believe things will definitely improve,” he added.

Rabiu urged Nigerians to remain patient, emphasizing that reforms take time, especially as Tinubu’s administration has been in power for just 18 months.

“I think we need to give them time, and I am sure things will get better,” he concluded.

Tinubu has continued to prioritize tax reform bills despite widespread criticism, particularly from the North.

He recently declined the National Economic Council’s (NEC) recommendation to withdraw the tax reform bills, remaining optimistic about their success.

With the Senate putting the bills on recess until 2025, Special Assistant to the President on Social Media, Dada Olusegun, highlighted the benefits for households and individuals in a post on his official X account, saying: “Complete exemption of low-income earners up to Nim per annum (about N83k per month) from PAYE.

“Reduced PAYE tax for those earning a monthly salary of N1.7m or less.

“Zero per cent Value Added Tax (VAT) on food, healthcare, education, electricity generation and transmission.

“VAT exemption on transportation, renewable energy, CNG, baby products, sanitary towels, rent and fuel products.”

Olusegun also said the tax reform will also affect in a positive way: Tax breaks for wage awards and transport subsidy to low-income earners.

Other benefits, according to him, are tax incentives for employers to hire more people incrementally than in the previous three years, exemption of stamp duties on rent below N10 million and PAYE tax exemption for other ranks and armed forces fighting insecurity.

Also on the list are friendly tax rules for remote workers and digital nomads as well as clarity on taxation of digital assets to avoid double taxation and allow a deduction for losses.

Tinubu’s proposed tax reforms, meanwhile, appear to resonate with northern businesses despite the resentment from the region, according to a new report.

Meanwhile, Tinubu’s proposed tax reforms appear to resonate with northern businesses despite initial resentment from the region, according to a recent report.