Bimbo Kolade Lauds FG on New Tax Law, Explains Why RMAFC Still Pays LG Allocations into State Coffers
The Federal Commissioner representing Oyo State at the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Honourable Abimbola Kolade, has commended the Federal Government for what he described as the thoughtfulness and pro-masses orientation of the newly implemented Tax Law.
Kolade gave the commendation on Saturday while speaking on Gbangba l’asaata, a public affairs programme on Ilaji FM. According to him, the administration of President Bola Ahmed Tinubu has, for the first time in Nigeria’s history, prioritised the welfare of low-income earners in tax policy formulation.
He explained that the new tax law offers significant relief to Nigerians earning the least, noting that many salary earners, self-employed individuals and small and medium-scale enterprise (SME) operators will, in most cases, pay no tax at all, and substantially less where payment becomes necessary. “This is another relief package and a true dividend of democracy for the Nigerian people,” Kolade said.
Speaking further on the programme, the RMAFC commissioner also clarified why allocations to local governments are still being paid into state coffers. He disclosed that funds meant for local governments across the country are currently paid into the State Joint Local Government Accounts, with only two states disbursing allocations directly to their local councils.
Kolade explained that, as of now, funds from the Federation Account are yet to be paid directly to local governments nationwide, as the existing disbursement framework still routes allocations through state-controlled joint accounts.
According to him, only Katsina State and Lagos State have demonstrated compliance by receiving their allocations and promptly transferring the funds directly to their respective local government councils.
However, Kolade urged stakeholders and members of the public not to panic, stressing that the recent Supreme Court judgment has provided clear legal backing for full financial autonomy for local governments, which will eventually be implemented across all states.
The RMAFC commissioner, who also serves as the National President of the Nigerian Institute of Building (NIOB), expressed confidence that sustained political will and strict adherence to the law would soon lead to full nationwide compliance. He noted that direct payment of LG funds will strengthen grassroots governance, improve accountability, and enhance service delivery at the local government level.
