Africa (Commonwealth Union) _ The Western Region Organisation (WRO), an international advocate for regional governance in Nigeria, has called on President Bola Tinubu to resist blackmail and harassment as he advances critical tax reform measures. The plea comes amid growing debates over the Tax Reform Bills currently under review by the National Assembly.
Speaking in Lagos, WRO Executive Director Mr. Banji Ayiloge emphasized the need for the National Assembly to amend the bills, granting states exclusive authority to collect and utilize Value-Added Taxes (VAT). Such a move, he argued, would promote fairness and align with the principles of federalism.
“Value-Added Taxes (VAT) should fall under the jurisdiction of states,” Ayiloge stated. “States need this revenue to drive meaningful development in their regions. The Federal Government’s practice of collecting and redistributing VAT is contrary to federalism and more akin to unchecked state socialism.”
Ayiloge criticized the current approach, which he said creates inequality by redistributing resources in ways that penalize effective state leadership and reward inefficiency. He also highlighted the historical context, recalling that VAT was initially introduced at the state level during the Second Republic by former Ogun Governor Bisi Onabanjo. Gen. Ibrahim Babangida’s military regime later centralized the policy.
Reinstating states’ control over VAT collection, Ayiloge argued, would represent a landmark political decision, restoring some of the autonomy lost since the 1966 military coup that dismantled Nigeria’s regional governance structure.
He urged President Tinubu to remain steadfast in supporting reforms that address systemic deficiencies in Nigeria’s tax framework. Additionally, Ayiloge called for regional governments to focus on harnessing their unique resources, citing the North’s potential for mechanized farming as an example of untapped economic opportunities.
“The North’s vast land area is ideal for large-scale agriculture and could serve as Nigeria’s breadbasket if fully leveraged,” he said.
WRO believes that empowering states with greater fiscal responsibility and autonomy will create a fairer and more productive tax system, benefiting the nation as a whole. Ayiloge’s appeal reinforces the group’s broader mission to decentralize governance and champion regional development as a path to equitable national growth.
