Reforms: Tinubu Tactically Places More Responsibility On States

By Ayodele Oni

The Presidency has tackled former Vice President, Atiku Abubakar over his accusation  of fiscal recklessness by President Bola Tinubu’s Administration. Atiku cited excess borrowing in the 2024 budget.

The Presidential Candidate of the African Democratic Congress, ADC,   also questioned the removal of fuel subsidy, criticising tax reforms, concocting an oil windfall of N7.98 trillion, and suggesting that Nigeria is drifting economically.

In a statement on Sunday, Special Adviser yo the President on Information & Strategy, Bayo Onanuga stated that the former Vice President’s concern were misplaced.

The statement pointed out that fuel subsidy’s withdrawal at the commencent of the administration has achieved meaningful results.

“The visible consequence of subsidy removal has been the sharp improvement in revenues accruing to states and local governments through the Federation Account.

“Higher statutory allocations have expanded fiscal space at the subnational level, enabling many states to increase spending on roads, schools, hospitals, salaries, pensions, and social programmes.

“Independent assessments, including those from the World Bank, have noted improvements in public revenues and subnational capital spending, which is another word for infrastructural development, following major fiscal reforms.

“This means that President Tinubu has tactically placed more responsibility for socioeconomic development on states and local governments, while providing requisite funding.

“This is true federalism and a bold statement on the much-vaunted subject of economic restructuring – another important issue gallantly avoided by the government in which Alhaji Atiku served and wielded great influence.”

On Tax Reforms, the statement maintained that it was not a punitive measure but progressive step.

“Another of Atiku’s uninformed criticisms suggests that the Tinubu administration chose to tax Nigerians more. This is blatantly false, and the statement is an attempt to deceive and dissemble.

“The objective of the tax reforms is not merely to increase collections but to create a broader, more equitable tax system.

“The reforms are intended to reduce the burden on many low-income earners (people earning N1 million per annum and below) and small businesses (with turnover of N100 million and below) while strengthening compliance among higher-income individuals and profitable enterprises – many of whom had avoided or evaded taxes under the cover of informality for decades.

“The underlying principle is that those with greater capacity should bear a larger share of the tax burden, while micro-enterprises and vulnerable households receive greater protection.

“Nigerians understand that to have a fine, working nation, we all must contribute to her prosperity. And we are on course.”