….Hosts an Interactive Session termed Common Ground with SEGOFS: Dialogue on the South-East Region and the Presidential Tax Reform Bill
By Tony Ezike
The South-East Governors Forum Secretariat held the maiden edition of its rotational dialogue series, Common Ground with SEGOFS, on November 13, 2024. The session was hosted by Senator Uche Ekwunife (Iyom) CON, the Director General of SEGOFS, and moderated by Chief Joe Ikunna, with Chief Okwudili Ijezie as the lead discussant and anchor.
The theme for the dialogue was “The Tax Reform Bill: How the South East Will Be Affected”, aimed at fostering an inclusive discussion on the impact of the proposed tax reforms on the South-East region. The event was attended by South Easterners from diverse professional backgrounds, including esteemed panelists Dr. Uramma, Prince Nwakeze, Chief Kachi Nwoga, Amb. Clem Aguiyi, and CDon Adinuba.
Senator Ekwunife highlighted the purpose of Common Ground with SEGOFS as a platform to engage experts from various fields to deliberate on issues affecting the South-East. She emphasized that outcomes of these dialogues would be forwarded as advisory positions to the South-East Governors Forum (SEGOF), lawmakers, and other relevant authorities to guide decision-making devoid of partisan sentiments.
The keynote address, delivered by Chief Okwudili Ijezie, focused on the theme, “The Issues and Challenges of the Tax Reform Bill and Its Impact on the South-East Economy.” Chief Ijezie, a seasoned tax expert and founder of Okwudili Ijezie & Co. (Chartered Accountants), detailed the following:
- Overview of the Tax Reform Bills
The Nigeria Revenue Service (Establishment) Bill
The Nigeria Tax Bill
The Nigeria Tax Administration Bill
The Joint Revenue Board (Establishment) Bill
- Controversies Surrounding the Bills
Chief Ijezie explained the opposition from Northern Governors regarding the Value-Added Tax (VAT) derivation formula, which proposes an increase in allocation to states based on consumption. He argued that states prohibiting VAT-generating activities should not benefit disproportionately from their proceeds. - Potential Benefits for the South-East Region
Improved revenue allocation
Enhanced tax compliance
Economic growth
Increased foreign direct investment
Better infrastructure development
- Recommendations
Chief Ijezie urged the South-East Governors Forum to engage in dialogue with the National Assembly, promote regional economic integration, and ensure fairness in the VAT derivation formula.
Panel Discussion and Observations
The panelists noted that the proposed tax reforms are widely misunderstood, with insufficient discourse on their implications. To address this, a study group comprising experts from various fields will be established to review the bills and provide detailed recommendations. These findings will form the basis for further discussions at the next Common Ground with SEGOFS dialogue.
The session ended on a high note, with a commitment to continue fostering dialogue and leveraging expert opinions to advance the economic interests of the South-East region. The dialogue series was commended as a vital step towards promoting inclusive and strategic decision-making in the South-East.
