By Amos Tauna
The Association of Arewa Yoruba Youths (AAYY) has thrown its weight behind President Bola Tinubu’s tax reform bill, describing it as a progressive and visionary step in reshaping Nigeria’s economic and social landscape. According to the association, the bill has the potential to transform the lives of millions of Nigerians, particularly the marginalized and underserved.

In a statement issued by its National President, Ambassador Lawal Hussein Taiye, the association expressed its enthusiastic support for the reform, citing its potential to simplify the tax system, reduce the burden on low-income earners and small businesses, and promote economic growth.
President Tinubu’s tax reform bill addresses these long-standing issues by exempting businesses with a turnover of less than N50 million from tax payments
For decades, Nigeria’s tax system has been perceived as complex, inequitable, and burdensome, especially for low-income earners and small businesses. President Tinubu’s tax reform bill addresses these long-standing issues by exempting businesses with a turnover of less than N50 million from tax payments. This move recognizes the vital role of small enterprises in Nigeria’s economy, providing employment and fostering innovation.
The bill also offers relief to low-income earners, with over 90% of workers in Nigeria’s public and private sectors no longer paying income tax. Those earning less than N1.7 million monthly or N9 million annually will see their tax burdens significantly reduced, with some experiencing a halving of their tax rates. This relief will ensure that hardworking Nigerians keep more of their earnings, alleviating poverty and enhancing their quality of life.
The tax reform bill’s fairness is one of its hallmarks, with a progressive tax system that shifts the tax burden to wealthier individuals and exempts low-income earners. This approach not only promotes equity but also aligns with global best practices for economic justice.
The tax reform bill’s fairness is one of its hallmarks, with a progressive tax system that shifts the tax burden to wealthier individuals and exempts low-income earners
Over 82% of goods consumed by low-income Nigerians will be VAT-free, making essential commodities more affordable. This measure directly benefits families struggling with the rising cost of living, ensuring that their basic needs are met without additional financial strain.
The bill’s reallocation of VAT revenue, where 90% will now go to states and local governments, is a revolutionary step in decentralizing resources. This shift empowers local authorities to address the unique needs of their communities, fostering grassroots development and reducing over-reliance on the federal government.
The abolition of consumption taxes collected by states will streamline revenue collection and eliminate redundant tax burdens. This move demonstrates a commitment to simplifying governance while maximizing impact.
The reform’s plan to consolidate tax collection under one agency and abolish nuisance taxes is a game-changer
Nigerian businesses currently face over 60 different taxes and levies, stifling their growth and discouraging investment. The reform’s plan to consolidate tax collection under one agency and abolish nuisance taxes is a game-changer, improving the ease of doing business, attracting local and foreign investors, and revitalizing the country’s industrial sector.
President Tinubu’s tax reform bill is not just about addressing present challenges but is a visionary plan for long-term growth. The gradual VAT increase from 10% in 2025 to 15% in 2030, with essential goods exempted, is a balanced strategy that ensures economic stability while protecting low-income earners. The abolition of outdated tax laws, such as the Stamp Duty Act, signals the administration’s commitment to modernization and efficiency.
In conclusion, the Association of Arewa Yoruba Youths believes that President Tinubu’s tax reform bill is a significant step towards creating a more equitable and prosperous Nigeria. The association urges Nigerians to support this visionary initiative, which has the potential to transform the country’s economic and social landscape.