Solomon Dalung, the former Minister of Youth and Sports, sparked controversy with his remarks at the just-concluded 9th Nigeria Most Influential Awards (NMIA)in Abuja. He criticized President Bola Tinubu’s proposed tax reform bills, labeling them unjust and harmful to national unity. As organisers of the event, we express concern over Dalung’s comments, as our platform is meant to celebrate individuals who have positively impacted Nigeria, not to promote political agenda or incite Nigerians.

What’s even more alarming is that as a former Federal Government Minister, he did not bother to educate himself about the bill. Instead, he chose to spread misinformation based on unverified rumours. We would like to take this opportunity to set the record straight and provide accurate information to Dalung and others who are spreading misinformation about the proposed legislation, thereby fueling division among Nigerians: 1. Expected to bring about several benefits to the economy and citizens, the bill aims to consolidate over 66 taxes into eight, making the tax system more streamlined and easier to administer.

This simplification will reduce the complexity and compliance costs for businesses and individuals; 2. The proposed tax reform bill will increase the share of Value Added Tax (VAT) revenue for state and local governments. It proposes a reduction of VAT distributable to the Federal Government from 15% to 10%, with 55% going to state governments and 35% to local government councils. This increase in revenue will enable state and local governments to fund more projects and improve public services; 3. It provides tax relief for low-income earners, with those earning ₦800,000 and below annually exempt from personal income tax.

This will increase their purchasing power and help alleviate poverty; 4. It also provides incentives for small businesses, with those having an annual turnover of ₦50 million or less exempt from taxes. This will help reduce their financial burden and enable them to grow and create more jobs; 5. The bill proposes a reduction in company income tax, from 30% to 27.5% in 2025 and 25% in 2026. This will make Nigeria more competitive and attractive to foreign investors; 6. On harmonization of taxes, the bill seeks to harmonize taxes, reducing the multiplicity of taxes and levies paid by companies. This will simplify the tax system and reduce the financial burden on businesses.

Overall, the tax reform bill is designed to promote economic growth, reduce poverty, and increase revenue for state and local governments. We hereby urge the former Minister to desist from spreading misinformation and instead engage in constructive dialogue. We also invite him and others to seek accurate information about the proposed tax reform bills. By working together, we can promote a more informed and inclusive conversation about Nigeria’s future.