Governor Abiodun Lauds Tinubu’s Tax Reforms, Foresees Economic Transformation

 Ogun State Governor Dapo Abiodun hailed President Bola Tinubu’s tax reform bills, signed into law on June 26, as a groundbreaking move to create a transparent and investment-friendly economy. 

The four bills—Nigeria Tax Act, Nigeria Tax Administration Act, Joint Revenue Board Establishment Act, and Nigeria Revenue Service Establishment Act—set to take effect in January 2026, aim to address Nigeria’s $20 billion annual tax gap, which constitutes 5% of its $400 billion GDP.

Speaking at an economic summit in Abeokuta on June 27, Abiodun emphasized the Nigeria Tax Act’s 25% personal income tax cap, reduced from 30%, and a 4% development levy for infrastructure projects. The Tax Administration Act introduces a digital filing platform, targeting 90% compliance by 2027, while the Joint Revenue Board will resolve state-federal disputes, such as Ogun’s N50 billion VAT shortfall. The Nigeria Revenue Service, replacing the Federal Inland Revenue Service, is empowered to combat tax evasion, which costs Nigeria 3% of GDP annually.

Abiodun, whose state hosts 5,000 industries generating N100 billion yearly, projected the reforms will attract $10 billion in foreign investment by 2028 and create 1 million jobs nationwide. Northern lawmakers oppose the VAT sharing formula, fearing revenue losses for states like Kano. Abiodun countered that Ogun’s model, with 20% GDP growth in 2024, proves the reforms’ potential. The state plans a tax education campaign in Q3 2025 to ensure compliance among its 2 million taxpayers.