The Special Adviser to President Bola Tinubu on Media and Public Communication, Sunday Dare, has emphasized the transformative impact of the newly introduced Tax Reform Bills, which he believes will compel state governments to take greater responsibility in revenue generation and accountability.
Speaking on Sunday, Dare provided an in-depth analysis of the data highlighting internally generated revenue (IGR) from Nigeria’s six geopolitical zones and the allocations received from the federal government. He noted that the data reveals a significant disparity in contributions and allocations, underscoring the need for equitable reforms in the nation’s revenue-sharing framework.
The data provided a detailed breakdown of the contributions from each region, revealing stark contrasts between the amounts generated internally and the revenue allocated to them by the federal government. According to the analysis:
The South-West region, consisting of Lagos, Ogun, Osun, Ekiti, Ondo, and Oyo States, emerged as a major contributor with an IGR of ₦3.11 trillion. However, the region received only ₦849.71 billion in federal allocations, amounting to just 27.4% of their total contributions.
In the South-South region, which includes Rivers, Bayelsa, Akwa Ibom, Cross River, Delta, and Edo States, the region contributed ₦1.08 trillion in IGR but received ₦543.49 billion in federal allocations. This represents a return of 50.3% of their total contributions.
The North-West region, comprising Sokoto, Kano, Kaduna, Katsina, Kebbi, Jigawa, and Zamfara States, generated ₦211.27 billion in IGR but received a significantly higher ₦574.32 billion in federal allocations. This marked a 271.8% increase over their contributions.
Similarly, the North-East region, which includes Adamawa, Bauchi, Borno, Gombe, Taraba, and Yobe States, contributed ₦174.50 billion in IGR but received ₦411.84 billion, an increase of 236% over their internal contributions.
The North-Central region, comprising Benue, the FCT, Kogi, Kwara, Nasarawa, Niger, and Plateau States, generated ₦154.54 billion in IGR but was allocated ₦408.66 billion in federal revenue, representing a 264.4% increase.
Meanwhile, the South-East region, which includes Enugu, Ebonyi, Abia, Anambra, and Imo States, generated ₦101.09 billion in IGR but received a federal allocation of ₦341.46 billion. This allocation represented a staggering 337.8% increase over their internally generated revenue.
Reacting to this data via his X handle, Sunday Dare highlighted that the Tax Reform Bills championed by President Tinubu are strategically designed to address these glaring disparities, ensuring fairness, equity, and justice in revenue-sharing across all regions of the country.
“Facts don’t Lie. This Government will always put the facts on the table for all Nigerians. President Tinubu is an unrepentant progressive and you can add nationalist to that. The Tax Reform Bills he is championing is rooted in the deep conviction that the Federal Government and the Sub-nationals have responsibilities and must live up to them. He is baking a bigger cake but wants equity, fairness and justice,” he wrote.
Dare further asserted that the implementation of the Tax Reform Bills will foster accountability at both the federal and state levels, encouraging sub-national governments to maximize their revenue-generation potential and reduce overdependence on federal allocations. He reiterated that this approach aligns with President Tinubu’s vision of building a more equitable and sustainable fiscal system for Nigeria.