Bagudu: Tinubu’s Tax Reforms Aimed at Job Creation, Economic Growth

Minister of Budget and Economic Planning, Senator Abubakar Bagudu, has said contrary to speculations, the tax reform effort of the President Bola Tinubuadministration seeks to stimulate economic activities and generate jobs for Nigerians.

Speaking with journalists on the side-lines of the 2024 Annual Retreat of the Bankers’ Committee in Abuja over the weekend, Bagudu said Tinubu remained committed to entrenching the principle of equality in all parts of the country. He added that there was currently no legislation or action under Tinubu that was designed to be detrimental to any part of the country.

The minister said tax legislation was a major issue in economic development globally, stating that the current tax debate is not limited to Nigeria.

He said the amendment bills sought to simplify the business environment by addressing the multiplicity of taxes and introducing equity and fairness in the distribution of Value-Added Tax (VAT) among the states.

He said that while every Nigerian had a right to seek answers and participate in the ongoing debate on the tax amendment bills currently before the National Assembly.

Bagudu, however, stated that such arguments should be objective and not centredon religion, tribalism, or sentiments.

He stressed that the Tinubu administration was committed to ensuring that Nigeria took a place of pride in the comity of nations.

He said, “We are doing infrastructure works that show the kind of commitment the president has for Nigeria. He is supporting different states in their various quests to develop.

“President Tinubu has also requested all state governors to give him what can be done more in their states so that more economic activity can be generated.

“Some of the reform initiatives, energy transition, for example, is for all parts of Nigeria. Security – the additional investment in security is for everyone in Nigeria.”

Bagudu added, “We can debate about argument. But what is wrong is for us, given the great effort to put our economy in the right direction, to be swayed by arguments of tribalism, religion, and sentiments.

“We have a president who believes in Nigeria, who is a committed democrat, so he understands that people have the right to debate.

“But what is annoying is when people, to make a point, resort to sentiments that can weaken our federation.

“Because one of the intended benefits of this tax legislation is to simplify tax compliance for small, small companies.

“And we have been investing in MSMEs. We have been investing in nano-credits. We want them to be the engines of growth.”

Bagudu insisted the government could not undertake any measures to deliberately undermine the economy.

He said, “We are under pressure to ensure that Nigeria maintains a higher level of growth. We want to generate growth. We will not do anything that will sabotage employment generation.

“Any measure we take is intended to generate economic activity and growth. That is what we can bring even as politicians, to talk from a self-serving interest, that is, what I can get a clap for, not the other way around. And, indeed, Mr. President is leading that drive.”

The minister said there was no point in animosity against any group, pointing out that as one of the most prominent members of the president’s team, “I am very confident that all the measures that are taken, pleasant and otherwise, because sometimes when you are confronting your reality, you take measures that may seem tough, they are taken by a leader who believes in Nigeria, who loves Nigeria, who wants to see a united Nigeria growing and fulfilling the dreams of all Nigerians.”

Bagudu explained, “As we stated before, the VAT is not a new tax. So, if there is a proposal to vary the rate, that is debatable. Make your inputs, and say how it affects you.

“First and foremost, try to understand it. Don’t just judge, try to understand. And like I said, compare it with other countries. The UK has VAT legislation, and maybe a significant proportion of their accounting industry is based on VAT reconciliation because VAT is a tough one.

“Certainly, people can debate, that’s what we want. It’s not a monologue. And we are dealing with a president, God bless him, who is very democratic. He listens to others; he expects people to make contributions.

“So, whatever legislation it is, let people make reasonable, respectable, proper nationalistic contributions so that we can get a better outcome.”

James Emejo

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