President Bola Tinubu's Tax Reform: A Masterstroke of Visionary Leadership

2025-08-06 05:40

On June 26, 2025, President Bola Ahmed Tinubu boldly signed the Nigeria Tax Act, 2025, and its associated Bills into law, marking a watershed moment in Nigeria's economic history. This far-reaching legislation, collectively known as the Tax Reform Bills, has the potential to catapult Nigeria to unprecedented heights of prosperity, equity, and social security, a feat not witnessed since the country's First Republic.

The Tax Reform Act is, in my opinion, President Tinubu's crowning achievement, cementing his legacy as the greatest President Nigeria has ever had. By devolving tax revenues to the states, the President has restored the regionally autonomous spirit of pre-1966 Nigeria, where each region controlled its resources, fostering healthy competition for revenue generation and development.

This visionary reform puts an end to the era of entitlement, where states relied heavily on federal allocations, rather than developing their own revenue bases. The existing system had created a culture of dependency, with states clamoring for a larger share of the pie, without corresponding contributions. The Tax Reform Act now ensures that states are incentivized to explore and harness their own revenue potential, as they will be rewarded with a larger share of the tax revenue they generate.

The new formula for sharing VAT revenue – 50% distributed equally, 20% based on population, and 30% based on consumption – is a testament to President Tinubu's commitment to fairness and equity. The states and local governments will now receive a greater share of the revenue, empowering them to drive development in their respective domains. By 2026, Nigerians will be able to hold their governors accountable for development in their states, as the resources will be available to make a tangible impact.

President Tinubu's leadership has demonstrated that his administration is committed to empowering the states and local governments to take control of their destiny. The Tax Reform Act is a game-changer, and its impact will be felt for generations to come. It is a testament to the President's vision, courage, and dedication to the Nigerian people.

As we embark on this new era of economic freedom and empowerment, we must acknowledge President Tinubu's leadership as the driving force behind this transformation. His administration has shown that, with determination and foresight, Nigeria can overcome its challenges and emerge as a beacon of hope for the African continent.

In conclusion, President Bola Tinubu's Tax Reform Act is a masterstroke of visionary leadership, which has the potential to rewrite Nigeria's economic history. As we move forward, we must continue to support and acknowledge the President's commitment to creating a prosperous, equitable, and secure Nigeria for all.