There is a popular song I love that says, “He has done it finally, finally, finally…” Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service, and his team are experiencing the song’s power. On January 16, 2025, the Nigeria Governors’ Forum (NGF) issued a communique backing the Tax Reform Bills, which is nothing short of huge. This, however, did not occur overnight. It results from months of strategic conversations, debates, and commitment to changing Nigeria’s fiscal policies into a tool for national development.

The communiqué issued at the end of the meeting was more than simply a document; it was a declaration of intent, a clear vision for a modern, equitable tax system that aligns with Nigeria’s current reality. The governors and the reform committee acknowledged that Nigeria’s existing tax rules could no longer meet the country’s needs. We have all witnessed the difficulties of a system that does not properly capture the nation’s riches or ensure that resources are distributed equitably. However, this tax reform bill has given Nigerians a renewed feeling of hope.

The journey has been intense. Last year, in October 2024, President Bola Ahmed Tinubu proposed the Tax Reform Bills to the National Assembly to overhaul the country’s tax structure. These bills are the Nigeria Tax Bill, Nigeria Revenue Service (Establishment) Bill, Nigeria Tax Administration Bill, and Joint Revenue Board (Establishment) Bill. The goal is to consolidate and integrate Nigeria’s tax laws to encourage consistent procedures and efficient administration, allowing for improved tax compliance in the face of current situations.

Some governors voiced their worries as the tax reforms progressed, especially regarding the implementation of taxation policies impacting natural resources. They were concerned that some tax policies, especially those targeting oil and gas extraction, might cause economic inequality.

However, the Tax Boss and the Tax Reform Committee did not back down from this challenge; they initiated discussions, listened to people’s worries, and—above all—proved to Nigerians that these reforms were not a threat but rather a chance to build a better future for every region in Nigeria.

The governors have openly backed the tax reform bills, emphasising a revamped VAT distribution system that promotes justice across all regions. They also reiterated their commitment to maintaining the nation’s tax rates, exempting essential products from VAT, and focusing on long-term economic stability.

The new formula will distribute 50 per cent of VAT revenue evenly across the states. At the same time, 30 per cent will be based on derivation, ensuring that the states contributing the most to revenue creation receive their fair share. The remaining 20 per cent will be allocated according to population size. This formula tackles the issue of fairness and reflects our country’s variety and requirements.

None of this would have been possible without the Tax Boss’s constant effort. As I regularly say, he has demonstrated that tax reform is more than just collecting revenue; it is about ensuring that every Nigerian has access to the services they deserve and can rely on the system to work for them. It ensures our healthcare, education, infrastructure, and social services have a good future.

Three “gbosa for a man wey sabi”, Dr Zacch! A leader who has shown that no matter how tough the challenges are, with determination, anything is possible. For those of us who have been waiting for this kind of news, it feels like we’re finally about to step into something big, a whole new era for Nigeria.

Aderonke Atoyebi is the Technical Assistant on Broadcast Media to the Executive Chairman of the Federal Inland Revenue Service (FIRS)