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Nigeria At The Risk Of Economic Recession In 2020 –Governor Yari

Published

6 years ago

April 30, 2019

Nigeria At The Risk Of Economic Recession In 2020 –Governor Yari

Chairman of the Nigeria Governors’ Forum (NGF) Abdulaziz Yari has said Nigeria risked another round of recession between 2020/2021.

To this end, he said the newly elected governors should brace up for the challenges to be posed by such development.

Yari, who is also the Zamfara state governor, said this Monday at the opening ceremony of induction of new and returning governors, organized by the NGF Secretariat in Abuja.

He said due to the drop in the price of crude oil from 114 to 75 dollar per barrel in the mid of 2014, it became very difficult for many states to even pay salaries.

“This scenario is a wake-up call for all of you to come amply prepared to face these kinds of challenges, especially since we are expecting the possibility of another cycle of recession by the mid-2020.

“This may last up to the third quarter of 2021. Your good spirit of stewardship will make you contain the situation should there be one.

“Also, as members of the National Economic Council, you must work hand in hand to boost the economy in tandem with the global best practices,’’ the governor said.

He commended President Muhammadu Buhari for his numerous interventions that saved the states from debilitating economic challenges, as well as the exit of the nation’s economy from recession.

He said at a point, 27 states were experiencing difficulty in settling their workers’ monthly salaries, development of infrastructure and effective service delivery.

“Mr. President’s intervention through bailouts from the capital market through the Central Bank of Nigeria, infrastructure development funds, anchor borrowers’ programme, budget support, London and Paris Clubs refunds have significantly saved the situation,’’ he said.

Yari, however, said states needed to work harder to boost their Internally Generated Revenue (IGR) and enable them execute more projects and reduce over-dependence on the federation account.

He also advised governors to look inward by boosting their revenue generation and also utilise the accruing revenue to execute projects that would touch the lives of the ordinary people.

“You must not forget the high expectations of our people on us; now that the democracy is maturing day in day out, the challenges of governance and service delivery are more demanding.’’

The NGF chairman lauded the current administration’s focus on agriculture, including anchor borrowers’ programme through which about N200 billion had been expended.

But the sum, the governor said, was inadequate if Nigeria must satisfactorily tackle the issue of insecurity in the country.

He said Nigeria needed to go to the next level by slamming high import tariff on other agricultural products, particularly maize and wheat in order to boost their production and provide raw materials for local industries.

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Tax Reform Bill Passage: New Tax Laws, Better Nigeria

Published

4 hours ago

May 9, 2025

The Gleamer

By Arabinrin Aderonke

Nigeria must work; this is the vision we have held onto for so long. When the news came that the Senate had passed all four tax reform bills, it was one of those moments you stop and ask yourself, is this really happening? For years, Nigeria’s tax system has been a source of frustration, something we all got used to criticizing. Truthfully, it was not just tax. From electricity to education to healthcare, we have long complained about the failure of government systems.

On top of that, Nigeria remained tied to the unstable global oil market, leaving us with unpredictable revenue and a shrinking ability to fund our future. That is exactly why we must keep believing in the idea of a new Nigeria. And this time, it is not just another round of promises, this is action.

President Bola Ahmed Tinubu understood that to truly rebuild Nigeria, we needed a tax system that would create sustainable revenue, spread the burden fairly, and give every Nigerian, rich or poor, north or south, a reason to trust government again. That is what led to the introduction of the tax reform bills in 2024. It has taken months of serious policy work, consultation, and courage. Now, with the National Assembly passing all four bills, the Nigeria Tax Bill 2024, the Nigeria Tax Administration (Procedure) Bill 2024, the Nigeria Revenue Service (Establishment) Bill 2024, and the Joint Tax Board (Establishment) Bill 2024, we are seeing decisions that could finally loosen Nigeria’s dependence on oil and give states the resources they need to grow.

One of the features is the new VAT sharing formula. Under the proposed structure, 50 percent of Value Added Tax revenue will be shared equally among all states, 20 percent will be distributed based on population, and 30 percent will be distributed according to actual consumption. It is a formula designed to balance fairness with performance, giving each state a stake while also encouraging economic activity and good governance.

The Senate also made it known that the VAT rate will remain at 7.5 percent, resisting pressure to increase it. For Nigerians, that means no new burden added to goods and services. But more importantly, the bills approved also provided for the continued funding of development agencies such as the Tertiary Education Trust Fund (TETFUND), the National Agency for Science and Engineering Infrastructure (NASENI), and the National Information Technology Development Agency (NITDA). These are the institutions that support learning, research, and innovation across the country, and their survival is necessary for the future of the Nigeria we all want.

Another part of the bill is the plan to turn the Federal Inland Revenue Service into the Nigeria Revenue Service (Nigeria Revenue Service (Establishment) Bill). But this is not just a name change. It is a coordinated effort to build a system that supports states, strengthens local government revenue, and makes tax collection more transparent.

Dr. Zacch Adedeji, Executive Chairman of FIRS, has led the redesign of the agency and introduced many measures aimed at improving tax collection across the country, and even these Tax Reform Bills are one. If anyone has earned respect in this space, it is him. His work shows that reforms are possible when people in charge are ready to do better.

As it stands, all four tax reform bills have been passed, and these laws are now in place. This means Nigeria has completed what many consider the most needed tax reform in years.

The process now moves to the harmonization stage, where both the Senate and House of Representatives will come together to resolve any differences in their versions of the bills. Once they reach an agreement, the bills will be sent to the President for his final approval. After the President signs them into law, they will be published in the official gazette, making them official. From there, the Federal Inland Revenue Service, which will be renamed the Nigeria Revenue Service, will take the lead in implementation. With the capable Tax Boss, Dr. Zacch, we can be sure that the results will exceed expectations.

This is the Renewed Hope Nigerians have been waiting for. The changes are here, these reforms give us the chance to do things right!

Arabinrin Aderonke Atoyebi is the technical assistant on broadcast media to the executive chairman of the Federal Inland Revenue Service

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