By Maliki Mahmood
President Bola Tinubu’s passion for transforming Nigeria is undeniable. Since assuming office, he has prioritised bold economic and social reforms aimed at addressing deep-rooted structural challenges aimed at promoting sustainable growth. His Renewed Hope Agenda encapsulates a vision of progress that not only resonates with Nigerians’ desire for meaningful change but the inevitability of it at the moment.
The administration’s early removal of the petrol subsidy, a sensitive but economically bold and necessary move though hurtful, but we all knew, had to be done. While the policy may still feel disruptive, it is freeing up funds that were previously drained by gross inefficiencies, masqueraded payments and corruption. We must then now demand that these resources are redirected to critical infrastructure, healthcare and education to create long-term benefits for all Nigerians.
The unification of the foreign exchange rates has introduced transparency in the forex market and is boosting investor confidence in Nigeria’s economy. I must say that Nigerian ecomony needs it to be less volatile, yet necessary. The administration is also driving advancements in agriculture, energy and infrastructure. Also, through initiatives supporting mechanisation, irrigation and financing, it is expected that agricultural productivity would rise consequently, resulting in reducing food costs and creating jobs. Similarly, in the energy sector, President Tinubu’s focus on renewable, sustainable energy and the expansion of electricity distribution is set to improve productivity, especially in rural areas.
It is, however, imperative to state that at the heart of these transformations lie the proposed tax reforms, which is a cornerstone of Tinubu’s economic agenda. The tax bills currently before the National Assembly aim to overhaul Nigeria’s outdated tax system by making it more inclusive, equitable, efficient, and fair. Furthermore, a significant feature is the proposal to raise the Value-Added Tax (VAT) threshold that is expected to exempt millions of low-income earners and small businesses from tax obligations and allowing them to operate with greater ease. Additionally, the reforms promise to strengthen support for Special Economic Zones in order to spur industrial growth and job creation can not be further delayed.
However, despite its enormous prospects, the proposed tax bill has faced backlash largely fuelled by misinformation and misunderstanding and I dare say, some bit of politics in its intent. Many cynics claim the reforms will burden businesses and ordinary Nigerians, but the truth is that such narratives ignore the bill’s clear focus on easing economic pressures for low-income groups and encouraging a more equitable tax structure. In reality, these reforms aim to expand our tax base by ensuring wealthier individuals and corporations contribute proportionately to the economy. This, in turn, would reduce reliance on oil revenues and pave the way for economic vitality and sustainability. Sadly, misinformation about the bill has also led to unnecessary fears of higher taxes across board. For example, the proposed VAT changes have been designed to reduce the burden on smaller players in the economy, not increase it.
Unfortunately, too, political opponents, anti-government agents and those who prefer gimmicks of maintaining the status quo of denying Nigeria any progress have exploited this misunderstanding by spreading falsehoods, to undermine public confidence in the reforms. Clearly, such actions only serve to distract from the broader goal of national development and should be discouraged.
It is important to note that every part of Nigeria and Nigerians will benefit from the gains embedded in Tinubu’s tax bills. It is a win-win for all Nigerians and the President deserves support for coming out with these bills.These bills will lift majority of Nigerians out of poverty.
It is crucial for Nigerians to see these tax reforms for what they truly are: which is that, it is an opportunity to modernise the fiscal system and engender inclusive growth. President Tinubu’s administration deserves commendation for taking these bold steps despite the potential political risks. The proposed tax reforms are not merely policies, they are a roadmap to lifting millions out of poverty and creating a fairer society. I therefore plead to all stakeholders, especially political leaders, prominent Nigerians, religious and traditional heads, the civil society, and relevant stakeholders to rise above partisan interests and support these progressive measures. By dispelling misinformation and embracing the reforms, we can ensure the success of the Renewed Hope Agenda and a brighter future for all Nigerians.
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