The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele, has assured Nigerians that the proposed tax reform bills will curb frivolous spending by state and local governments.

Speaking at a roundtable organised by the National Institute for Legislative and Democratic Studies in Abuja, Oyedele said the reforms include specific provisions for how Value Added Tax (VAT) proceeds should be utilised.

He clarified that VAT is state revenue and not part of federal revenues captured in the constitution, adding that this distinction is why VAT is shared through special pool accounts rather than the federation account.

Oyedele criticised past spending priorities, citing examples such as unnecessary state-funded airports, underused flyovers, and poorly patronised shopping malls, while basic infrastructure like schools and health centres remain underfunded.

“Our priorities should align with the multidimensional poverty index,” he stated. “Education, healthcare, living standards, security, and employment should be the focus.”

He also debunked claims that the Federal Inland Revenue Service (FIRS) plans to engage tax consultants like Alpha Beta, stressing that the proposed bills explicitly ban the FIRS from using consultants for VAT collection.

Senate President Godswill Akpabio described the tax reform bills as essential for modernising Nigeria’s tax system and promoting equitable revenue generation. He acknowledged public concerns but assured Nigerians that the National Assembly is committed to addressing their fears and building a prosperous nation.

The Director-General of NILDS, Prof. Abubakar Sulaiman, added that the reforms aim to make Nigeria’s tax system more progressive, reducing the burden on low-income earners while enhancing accountability and transparency.