By Emmanuel Odekina Iyede Aidoko Onuche

In recent weeks, the Nigerian Senate has been discussing President Bola Tinubu’s proposed tax reform bills. These bills are a big deal because they could change how Nigeria collects and shares its money. But what does it really mean for the everyday person? Let’s break it down in the simplest way possible.

What Is the Tax Reform Bill About?

Think of it as a plan to fix Nigeria’s money-sharing system. Right now, the federal government collects most of the money, like VAT (Value Added Tax), and then shares it with the states and local governments. The proposed tax reform will:

Give states a bigger share of the money collected (55% of VAT instead of the current 15%).
Remove unnecessary taxes to make things easier for businesses.
Let people earning below the minimum wage pay no tax at all.

In short, the government wants to make the system simpler and fairer for everyone.

What If States Get Full Control of Their Resources?

Imagine Nigeria as a family where every state is a child. Right now, the parents (the federal government) collect all the pocket money (resources) and decide how much each child gets. But what if each child got to keep their own pocket money and decide how to use it?

That’s what people mean when they say states should control 100% of their resources. Here’s how it might work:

States with a lot of oil, like Rivers or Delta, would keep all the money made from selling oil in their area.
States rich in agriculture, like Kebbi or Plateau, would keep all the money from farming products.
States with industries, like Lagos, would keep the taxes from businesses in their state.

This system is called “resource control.”

What Are the Pros of Full Resource Control?

Fairness: States would be rewarded for their hard work. If a state generates a lot of money, it keeps it.
Healthy Competition: States might work harder to improve their economy so they can earn more.
Local Accountability: Instead of waiting for handouts from Abuja, state governors would have to manage their money wisely.

What Are the Cons of Full Resource Control?

Unequal Development: States without big industries or resources, like Borno or Yobe, might struggle to generate enough money for schools, hospitals, or roads.
Higher Taxes Locally: States may need to increase taxes on their residents to generate income.
Risk of Mismanagement: If a state leader misuses resources, there’s no federal backup to bail them out.

How Does This Affect the Average Nigerian?

If you live in a resource-rich state, life could improve with better roads, schools, and healthcare—if the government uses the money wisely.
In less wealthy states, there might be higher taxes or fewer services unless they find new ways to generate income.
Everyone would rely more on their state government for development instead of the federal government.

In summary, the proposed tax reforms aim to share resources more fairly and encourage states to take more responsibility. While the current reforms don’t give states 100% control yet, it’s a step towards making states more self-reliant.

For the everyday Nigerian, the key is holding leaders accountable—whether it’s in Abuja or your state capital. After all, whether the money comes from oil, taxes, or farming, it’s meant to improve the lives of the people.

Source: The Bureau Newspaper

This reform get as e be o.

States like Borno, Bayelsa, Ebonyi, Kebbi and the likes how do they get money if federal government refuse to short change Lagos for them.

As scary as it sounds, na now we go know parasite 🪱

Let's see how things unfold.

Modified: Bayelsa get oil, Bayelsa get oil. What's Bayelsa IGR

Our development as country will take take. Forget all the campaign premises

Toh

"GDP is better than IGR" na now you go hear yourself. In fact you go see yourself.

Why should we tax our people? we will share taxes from other regions. You will see yourself.

alanto:
This reform get as e be o.

States like Borno, Bayelsa, Ebonyi, Kebbi and the likes how do they get money if federal government refuse to short change Lagos for them.

As scary as it sounds, na now we go know parasite 🪱

Let's see how things unfold.

I so much like these proposals.

1. All state governors will have to start thinking outside the box. Like some will have to create wealth out of whatever resources they have in their domain.

2. The center (presidency) will be a little unattractive considering the resources that will be available to the governors.

3. Only smart minds will aspire to be governors. Chances for dunces will be reduced.

4. Fanaticism will drastically reduce as each state will try to make their domains peaceful, hospitable and investment friendly.

5. More ministries and agencies for the states.

6. I love the technical restructuring that Tinubu is doing. The born to rule mentality has to stop.

7. Some states will now have to look for ways to control their population. Enough of almajiris in the name of having voting power during elections.

The part I don't support in is the part where they names a 1m annual earner a big income earner and again the reduction of the share if the FG...

The FG has a far far bigger role to play to keep the nation going... U guyz are dumb to tinubus antics... He needs Lagos or the region he governs to have endless cashlow which he and his family will coner

After all said and done anything that does not reflect the daily life of the peeps hustling in the Country is a very very useless and worthless reform.

This Apc niggas are hoplesssly deranged and delusional. They peruse the Sm with ideas that berates and crush the Reality the common Nigerian face everyday.

In Reality, You can hardly walk from here to there without people begging you for money to eat.
Apc has obviously killed every tiny hope the Country once dreamed of with their suffering and smiling mantra. This is a Reality. Go to the market tomorrow morning and price a cup of ogbono.

Senseless media reforms that negates the Realities of the Country.

If You re poor or in mid class, the only sensible explanation for supporting Apc is zombism.

During Buhari tenure, sending my goods to Ghana every week cost me 150k it's triple of the amount now in Tinubu's tenure. I don't care about their excuses and blame games, all I know is that if Smes can't operate in a system how then do you expect economic growth??.

I want make Tinubu implement this reform bill make everywhere scatter.

All of you have power

Another alpha beta arrangement to loot Nigerian treasury of trillions at the federal level from the criminal mandate thief drug lord failure. Tinubu’s greatest achievement is introducing kwashiorkor back to Nigeria and to to his own people after a 54 years absence of the disease from Nigeria. According to Dr. Folusho Balogun of UCH In Ibadan they are now seeing more and more of those cases everyday….awalokan.. tinubu Will favor me 😂

100% of VAT should go to the states. Not sure why the Federal Government should be dipping their corrupt hands in VAT. Each state should also set their % VAT.

States rich in agriculture will suffer from this. Here's how it will affect them negatively, there's currently no taxes on agricultural products as government intends to boost food supply. So such states will be giving away the only thing they can boast of freely while others will be able to tax their own.


At the end,I pray Nigeria wins because right now, it's as if if we block one part, more areas open up

The tax bill is a good in some areas like the reduced taxes for SMEs, zero tax for those earning below 1m per annum & power generated & distributed within Nigeria and allocating more VAT revenue to states.

But it also has some worrying implications.

First, price of goods & services will increase since VAT will go up to 15%

Second, more taxes for those earning above minimum wage.

Third, with reduced FG revenue, expect increase in cost of government services such as education and health. This would be made worse for tertiary institutions with the death of TETFund.

Fourth, the reform does not favour resource rich state as the FG still controls thier main natural resources.

Fifth, the reduced taxes for businesses is good but tends to favour the politicians themselves who are the ones that loot state resources and establish or invest in these same businesses. So they are simply reducing taxes for themselves.

Also, the tax reform cleverly ignores the need to link income-assests-tax. This loophole is what people like bat use to hide thier loot. What assets does bat have, what is his income? How much tax does he pay? He and other looters keep playing with the areas that need real reform.

It is only reforms that impact the masses negatively that they pursue vigorously.

ivandragon:
The tax bill is a good in some areas like the reduced taxes for SMEs, zero tax for those earning below 1m per annum & power generated & distributed within Nigeria and allocating more VAT revenue to states.

But it also has some worrying implications.

First, price of goods & services will increase since VAT will go up to 15%

Second, more taxes for those earning above minimum wage.

Third, with reduced FG revenue, expect increase in cost of government services such as education and health. This would be made worse for tertiary institutions with the death of TETFund.

Fourth, the reform does not favour resource rich state as the FG still controls thier main natural resources.

Fifth, the reduced taxes for businesses is good but tends to favour the politicians themselves who are the ones that loot state resources and establish or invest in these same businesses. So they are simply reducing taxes for themselves.

Also, the tax reform cleverly ignores the need to link income-assests-tax. This loophole is what people like bat use to hide thier loot. What assets does bat have, what is his income? How much tax does he pay? He and other looters keep playing with the areas that need real reform.

It is only reforms that impact the masses negatively that they pursue vigorously.

It's a gradual process man. You don't perfect bill or constitution, you keep tweaking it until everyone is represented just like in the case of America.

michlins:
States rich in agriculture will suffer from this. Here's how it will affect them negatively, there's currently no taxes on agricultural products as government intends to boost food supply. So such states will be giving away the only thing they can boast of freely while others will be able to tax their own.


At the end,I pray Nigeria wins because right now, it's as if if we block one part, more areas open up

No state will suffer, this money are been stolen

alanto:

It's a gradual process man. You don't perfect bill or constitution, you keep tweaking it until everyone is represented just like in the case of America.

True, but why should the masses always have to bear the nasty side effects of reforms in nigeria while the politicians make no sacrifices?

ivandragon:


True, but why should the masses always have to bear the nasty side effects of reforms in nigeria while the politicians make no sacrifices?

Because the masses voted the politicians in, so the masses bears the nasty side effect and consequences of voting a wrong politician

The Senate should also mandate that all Companies should properly file VAT generated from the states for proper documentation and revenue to the states, not when we pay for recharge cards and pay for DSTV etc., they'll all be allocated to Lagos state because all the headquarters are located there.
I wish our state Governors are woke on this to engage these people at this hearing process of the Tax reform bill before it's passed into law

Naxxxo

E go be

At the end of the day, many states will beg to be bought over. It will be good deal for big states. In all honesty every state should be self sufficient if we have right people in place. If Benin Republic, Togo, Sao Tome, ElSavador can survive. God has abundantly bless Nigeria.
See Lagos Island my area, with all the money generated from markets, businesses, NO PIPE BORNE WATER or toilets, roads to mention a few. Igbosere area is total mess. We need strong institutions to set Nigeria straight.

What a truckload of hogwash
Where is resource control in the bill
It is VAT that is being remodelled not resources

If that's the case then those companies with headquarters in Lagos or Ogun will have to pay tax in every state their products is distributed to, must of them pay taxes once in Lagos and Ogun while their products are distributed nationwide

alanto:
This reform get as e be o.

States like Borno, Bayelsa, Ebonyi, Kebbi and the likes how do they get money if federal government refuse to short change Lagos for them.

As scary as it sounds, na now we go know parasite 🪱

Let's see how things unfold.

Bayelsa ke...why you say Bayelsa?

alanto:

It's a gradual process man. You don't perfect bill or constitution, you keep tweaking it until everyone is represented just like in the case of America.

The America you are referring to didn't become what it is today by electing a notorious narcotics trafficker, certificate forger, and buccaneering power grabber engaged in criminal state capture.

Good one state will now develop faster

Thanks for breaking it down for those of us wey no go morning school.

I support this 100%. Its a step towards true federalism

michlins:
States rich in agriculture will suffer from this. Here's how it will affect them negatively, there's currently no taxes on agricultural products as government intends to boost food supply. So such states will be giving away the only thing they can boast of freely while others will be able to tax their own.


At the end,I pray Nigeria wins because right now, it's as if if we block one part, more areas open up

Then they should process their products into finished goods which would then be taxable cum encouraging industrialization in such states.

Solved!