Enugu Inland Revenue Service Gains Autonomy Governor Peter Mbah of Enugu State has signed into law a bill aimed at simplifying tax collection and administration by creating a one-stop taxation system. The Enugu State Internal Revenue Service (Establishment and Consolidation of Revenue Administration) Law, 2025 grants autonomy to the revenue collection agency, eliminating bureaucratic hurdles and preventing multiple taxation. During the signing ceremony at the Government House in Enugu, Mbah emphasized the significance of this reform in improving the Ease of Doing Business and positioning Enugu as a top investment hub. Eliminating Multiple Taxation for Businesses Mbah acknowledged the frequent complaints from the business community, private sector, and market traders regarding multiple taxation. He reassured them that with the new law in place, tax payments would be centralized. “From today, all tax payments—whether for market traders, private businesses, or government agencies—will be made at a single revenue collection point. This ensures transparency and prevents unauthorized tax collection,” Mbah stated. This reform aligns with global best practices by streamlining tax payments, making compliance easier for businesses and individuals. How the New Taxation Law works The new legislation consolidates state and local government revenues, ensuring that each tier of government receives its due share. Similar to Land Use Charges and Value Added Tax (VAT), tax collection will be centralized, but the revenue will be distributed accordingly. “The idea is simple: one collection point, with appropriate revenue allocation to the relevant government bodies. This enhances transparency and accountability in revenue management,” the governor explained. Autonomy for the Enugu State Inland Revenue Service Under the new law, the Enugu State Inland Revenue Service (EIRS) now operates as an independent agency, allowing it to function with greater efficiency. IGR Growth Driven by Technology, Not Higher Taxes Governor Mbah also addressed misconceptions regarding the state’s Internally Generated Revenue (IGR). He clarified that the surge in revenue is a result of expanding the tax net, plugging revenue leakages, and leveraging technology—rather than increasing tax rates. “We have not raised taxes in Enugu State. Instead, we have improved revenue collection efficiency, ensuring that payments are properly documented and remitted to state accounts,” he assured. Conclusion The establishment of a one-stop tax collection system marks a transformative step in Enugu’s economic strategy. By streamlining tax administration, eliminating multiple taxation, and granting EIRS autonomy, the state is fostering a business-friendly environment that will attract more investors and drive sustainable growth. READ ALSO: Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Chanel.
The Northern Economic Development Forum has eased concerns raised by Northern governors over the new tax reform policies introduced by President Bola Tinubu, assuring that these reforms will benefit the northern region. Northern governors initially opposed the Tax Reform Bills, urging the National Assembly to reject them, arguing that the reforms might not align with the North’s interests. However, the development forum expressed confidence in the reform’s potential benefits, stating that the proposed tax laws aim to modernize and improve Nigeria’s tax system without adverse effects. President Tinubu and the Federal Executive Council recently introduced legislation to overhaul tax processes, unify revenue collection, and streamline financial obligations for both businesses and citizens. The Northern Economic Development Forum emphasized the importance of thoroughly understanding the proposed bills before opposing them. They announced plans for a comprehensive awareness campaign across the 19 northern states to rally support for the Tax Reform Bills, asserting that the reforms will drive progress in the North and benefit the entire country. In a statement signed by Dr. Mustapha Ibrahim Gusau, the forum explained critical elements of the four bills—the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service (Establishment) Act, and Joint Revenue Board (Establishment) Act—highlighting that the reforms are intended to clear up misconceptions. READ ALSO: The forum clarified that the new tax policies are not designed to increase the number of taxes but rather to optimize current tax systems without adding complexity. It also stressed that: The Forum highlighted that these bills will harmonize tax laws, enhance efficiency, modernize the tax system, and strengthen coordination among revenue agencies. They are also expected to foster transparency, align with international standards, and expand the tax base. The forum called on Nigerians, particularly in the North, to support the reforms and avoid unnecessary alarm.
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President Bola Tinubu declared that the tax reform proposals would not be removed from the National Assembly notwithstanding the uproar surrounding them. This was revealed in a statement by Bayo Onanuga, the President’s Special Advisor on Information and Strategy. Instead, he clarified that the proposals ought to pass the legislature. “The National Economic Council recommended that the tax reform bills already sent to the National Assembly be withdrawn for further consultation,” the statement said of President Bola Tinubu. The Nigerian leader also praised the recommendations given by the members of the National Economic Council, particularly Vice President Kashim Shettima and the 36 state governors. He feels that without rescinding the measures, the legislative process, which has already started, offers a chance for input and required modifications. from the National Assembly. President Tinubu welcomes more discussions and involvement with important stakeholders to allay any concerns over the legislation as the National Assembly considers them for passage, but he also urges the NEC to let the process run its course. President Tinubu had only one goal in mind when he established the Presidential Committee on Tax and Fiscal Policy Reform in August 2023: to realign the economy for increased productivity and efficiency and create a more favorable business and investment climate. This goal is still more important now than it has ever been, the statement said. NEC Demands Tax Reform Bill WithdrawalNEC voiced concerns on Thursday on the Tax Reform Bill that President Bola Tinubu sent to the National Assembly. The Based on the findings and suggestions of the Presidential Committee on Fiscal and Tax Reforms, which the President established to aid in increasing the nation’s revenue generation, the measure was sent to NASS. The NEC unanimously demanded that the bill be withdrawn. This was one of the decisions made at the NEC meeting held at the Presidential Villa in Abuja, which was presided over by Vice President Kashim Shettima. Following the meeting, the governors briefed State House Correspondents, pointing out that the proposed reforms require enough agreement among the stakeholders. According to Oyo State Governor Seyi Makinde, who briefed reporters, NEC noted that sufficient consultations were required to gather the opinions of stakeholders, including state governors, in order to guarantee that the legislation is favorable. to every Nigerian. “The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms presented to NEC today. Fair taxes, prudent borrowing, and sustainable spending are their top priorities,” he stated. The Council recognized that the nation is underperforming on every metric, including the yield from its main sources of income, the tax to GDP ratio, and others. Following much discussion, NEC concluded that the suggested improvements require adequate agreement between and among the stakeholders. Therefore, the Council recommends that the tax reform bill now before the National Assembly be withdrawn in order to broaden consultations and foster agreement on these reforms for the good of the entire nation and to provide people with They should be aware of our goal and the direction we are taking with regard to tax reform, since there is a great deal of disinformation and misunderstanding,” Governor Makinde stated. Northern Governors Turn Down the BillThe action was taken just days after some of the proposals—most notably the VAT-sharing template in one of the bills—were rejected by the powerful Northern Governors’ Forum. Following a meeting in Kaduna, the northern governors came to this decision, calling for justice and equity. This is due to the fact that businesses pay VAT according to the location of their tax office and headquarters, not the location of the goods and services that are used. Given the aforementioned, the forum unanimously denounces the proposed Tax Amendments and urges National Assembly members to oppose any legislation that would endanger “the welfare of our people,” stated Inuwa Yahaya, the forum’s chairperson as well. To be clear, the Northern Governors’ Forum has nothing against policies or initiatives that promote the growth and development of the country. However, in order to guarantee that no geopolitical zone is overlooked or undervalued, the forum demands equity and fairness in the execution of all national policies and programs,” he stated. READ ALSO: Court approves N1.1 billion bail for 114 protesters charged with arson against public facilities. The governors that attended were Ahmadu Umaru Fintiri of Adamawa, Bala Mohammed of Bauchi, AbdulRahman AbdulRazaq of Kwara, Babagana Zulum of Borno, Uba Sani of Kaduna State, Inuwa Yahaya of Gombe, Dauda Lawal Dare of Zamfara, and Abdullahi Sule of Nasarawa. The deputy governors of the other governors represented them. Gombe State Governor Yahaya reading the statement declared during the conference that the tax proposals were not in the best interests of the North and gave northern lawmakers instructions to oppose them. We love to have you back, Kindly Subscribe to our NewsLetter.
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The National Executive Council (NEC) has recommended withdrawing the four tax reform bills submitted to Parliament by President Bola Tinubu. This decision was made during a meeting at the Presidential Villa on Thursday, chaired by Vice President Kashim Shettima, and included governors from all 36 states. Oyo State Governor Seyi Makinde, who spoke to reporters after the meeting, explained that the NEC called for the withdrawal to allow for broader consultations and to build consensus around the proposed reforms. The bills have sparked controversy, particularly with the Northern Governors Forum opposing them. These four bills were part of President Tinubu’s initiative to revamp Nigeria’s tax system. They aim to establish a central revenue service responsible for collecting all government revenues, including those currently managed by agencies like customs and the ports authority. Additionally, the bills propose allocating a larger share of VAT revenues to states, which has raised concerns among northern leaders who believe it could disadvantage their region. During the meeting, the NEC emphasized the importance of alignment among stakeholders regarding these reforms, acknowledging existing miscommunication. A spokesperson for President Tinubu previously stated that the proposed laws would not increase current tax rates but would instead streamline and enhance the existing tax framework. The reforms are designed to ensure a fairer distribution of tax responsibilities without adding to the burden on citizens, and they are not expected to lead to job losses. In fact, they aim to create new job opportunities by fostering a dynamic, growth-oriented economy. Currently, tax administration suffers from a lack of coordination among federal, state, and local authorities, which leads to confusion and inefficiency. The proposed laws aim to improve this situation by harmonizing revenue collection and management across all levels of government, without eliminating the functions of any existing agencies. READ ALSO: Wike: Unpainted taxis will not be permitted to pick up customers in Abuja. Regarding the controversial derivation-based VAT distribution model, the spokesperson stated that the new approach intends to create a fairer system. It considers the place of supply or consumption, ensuring that states in the Northern region that produce essential goods do not lose out due to VAT exemptions or consumption in other areas. The ongoing tax reform seeks to address the inequities in the current model for distributing VAT revenues. We Love To Have You Back. Pease kindly Provide Us With Your Email.
