Current Reform Targets Taxing Prosperity, Not Poverty – Aderonke

Technical assistant to the executive chairman of the Federal Inland Revenue Service (FIRS), Arabinrin Aderonke Atoyebi has emphasised the transformative potential of the proposed Tax Reform Bill.
In a compelling open letter to the governors of Northern Nigeria, Atoyebi “This reform is about taxing prosperity, not poverty.”

Addressing the concerns regarding the shift to a derivation-based model for Value Added Tax (VAT) distribution, Aderonke urged the governors to look beyond the immediate implications and consider the long-term benefits for their states.

“It’s understandable to have concerns, but this reform presents an opportunity to unlock growth that can empower our communities,” she wrote.

Aderonke highlighted the key objectives of the tax reform, reiterating Dr. Zacch Adedeji’s stance that the initiative is designed to ensure those with greater means contribute fairly to the nation’s economy.

“This reform is not meant to create new taxes or burden everyday citizens. It’s about streamlining the system to make it more efficient and equitable,” she asserted.

The letter pointed out that a derivation-based VAT model would allow states to reinvest revenues generated from local goods and services back into their communities.

“Resources collected in the North would be reinvested directly into Northern infrastructure like roads, schools, and hospitals,” Aderonke explained.

“This is an opportunity for sustained growth that benefits both communities and the local economy in a meaningful way.”

Emphasising the need for regional autonomy, Aderonke stated, “In the past, VAT revenue has been centralised, but this reform allows each state to gain more from its own economic activities. It values the strengths and contributions of each region, ensuring that efforts benefit local communities directly.”

Aderonke acknowledged the governors’ apprehensions but reassured them of the benefits that could arise from embracing the reform.

“This bill will help develop the North into a prosperous region. It encourages us to focus on our comparative advantages and be more creative in developing our resources,” she noted.
Furthermore, she called attention to the reform’s emphasis on transparency and accountability within tax administration.

“A more transparent framework assures that taxpayers can see tangible improvements from their contributions,” Aderonke stated. “This is about creating a fairer tax system that empowers businesses and respects the contributions of taxpayers.”

Aderonke encouraged the governors to consider the broader vision of President Bola Tinubu’s Renewed Hope Agenda, which seeks to transform and empower all regions of Nigeria.

“Together, we can pave the way for a Nigeria where all regions feel seen, valued, and fairly treated,” she asserted.