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The Senate Leader, Opeyemi Bamidele, has emphasised the importance of tax reforms as part of a broader legislative agenda aimed at economic restoration and national development.
In his Christmas message on Wednesday, the senator underscored the need for a collective effort to address Nigeria’s challenges, particularly through innovative legislative measures.
Drawing from the teachings of Christ, Senator Bamidele called for reflection and compassion during the season, urging Nigerians to embrace hope and contribute to the nation’s growth.
He reiterated the commitment of the 10th National Assembly to enact laws that create an enabling environment for businesses, attract investments, and alleviate the economic burden on citizens.
At the core of his message was a defence of the Tax Reform Bills, 2024, which he described as a set of four initiatives tailored to reverse Nigeria’s unfavourable economic indicators.
Senator Bamidele noted, “Employees earning below ₦1,000,000 annually (₦83,000 monthly) would be exempt from taxes. Start-ups shared services, and technologically driven businesses would enjoy tax exemptions and essential services and consumables would be excluded from Value Added Tax.”
The lawmaker further explained that the reforms also propose a new derivation formula, increasing the VAT distributable to states and ensuring equity in resource allocation.
Using data, Senator Bamidele explained that under the new model, states like Kano and Zamfara would see substantial increases in their shares, while high-revenue states like Lagos and Rivers would experience decreases to promote fairness.
He said, “We have noted public concerns about these initiatives. We are also looking deeply into the areas of public concern.
“Our duty, as democrats, is not just to listen to our constituents, but also to give effect to policy initiatives that will positively impact their lives.”
The Senate Leader added, “For the record, the Tax Reform Bills, when finally enacted, will utterly exempt all employees earning ₦1,000,000 annually or ₦83,000 monthly; exempt start-ups, shared services, and technologically driven services from taxation; and recommend zero VAT on essential services and consumables.
“Even though it reviews the derivation formula to 60%, this proposal is guided purely by the principles of equity, fairness, and justice.
“The new model will eventually guarantee a significant increase in VAT distributable to every state of the federation.”
“As credible data have shown, for instance, the new model recommends 6.17% to Kano compared to 0.89% currently. It recommends 1.21% for Zamfara compared to 0.05%. Currently, Lagos gets 80.26%, but the new model only recommends 15.28%, representing an 81% decrease. “Under the new model, Rivers’ share will also decline from 7.74% to 4.6%, accounting for a 41% decrease. With these figures, the narrative around the new derivation model is utterly incorrect and unfounded,” Senator Bamidele noted.
“These reforms are not only about generating revenue but are guided by the principles of equity, fairness, and justice,” the Senate Leader said.
He assured constituents that their concerns had been noted and that the National Assembly would ensure the bills reflected the interests of all Nigerians.
He said, “Amid the debates about the Tax Reform Bills, as Christ, our Lord has taught us and as the Parliament of the people, we shall never pursue any agenda outside our oath of allegiance or undertake policy initiatives that are adversarial to or conflicting with the interests and welfare of all our constituents and indeed our Fatherland.
“With all my heart, I wish you all happy celebrations in this season of deep reflection. Merry Christmas and Happy New Year in advance.”
