The Senate Leader, Opeyemi Bamidele, has disclosed that the proposed tax reform bills before the National Assembly recommend an increase in the Value-Added Tax (VAT) allocations for Kano and Zamfara states.
According to Mr. Bamidele, the bills suggest Kano’s VAT allocation will rise from the current 0.89% to 6.17%, while Zamfara’s share will increase from 0.05% to 1.21%. The senator, representing Ekiti Central Senatorial District, revealed this in his Christmas message to Nigerians.
“These figures demonstrate the essence of the new derivation model, which guarantees a fairer distribution of VAT revenue to all states. The claims that the northern region will be disadvantaged are not supported by credible data,” Mr. Bamidele said.
The tax reform bills have sparked controversy, especially among northern political and religious leaders. Borno State Governor, Babagana Zulum, recently argued that the reforms, excluding Lagos State, could negatively affect other states, particularly those in the northern region.
However, Mr. Bamidele countered the criticisms, noting that Lagos State’s share of VAT will decrease significantly from 80.26% to 15.28%, while Rivers State’s allocation will reduce from 7.74% to 4.6%.
“These adjustments are based on the principles of justice and fairness. Critics spreading false narratives about the bills are misrepresenting the provisions,” he said.
Mr. Bamidele explained that the tax reform bills include provisions to exempt individuals earning less than ₦83,000 monthly or ₦1,000,000 annually from VAT. Start-ups and essential services will also be exempted.
“The reforms promote equity, recommending zero VAT on essential services and consumptions. These measures are aimed at reducing the tax burden on low-income earners and boosting state revenues,” he stated.
The senator said that the National Assembly is considering all concerns raised about the bills.
“We are deeply engaged in reviewing public concerns. Our duty, as democrats, is to listen to our constituents and adopt policies that positively impact their lives,” he added.
Mr. Bamidele also extended wishes to Nigerians, urging them to embrace the season as a time for reflection and hope.
“With all my heart, I wish you all a Merry Christmas and a Happy New Year in advance,” he concluded.
The proposed tax reforms, if passed, could reshape revenue sharing across Nigeria, aiming to ensure a more equitable distribution of resources among states.
