Arewa Forum Debunks Vehicle Tax Claims, Endorses Ongoing Fiscal Reforms

The Arewa Socio-Economic Forum (ASEF) has forcefully rejected rumors of a new vehicle tax allegedly introduced by the Federal Government, following an investigation that found no evidence supporting such claims. The announcement came Tuesday in a statement issued by ASEF National President Aminu Kuta.

According to the organization, widespread messages circulating on social media urging vehicle owners to make payments through unofficial channels are deliberately misleading and designed to create public confusion.

“The Arewa Socio-Economic Forum wishes to categorically state that there is no new tax on vehicles as being falsely circulated in some quarters. Our findings confirm that neither the Nigeria Revenue Service nor the Ministry of Finance has introduced any such policy,” the statement declared.

The forum’s leadership revealed they had conducted extensive stakeholder consultations before issuing their statement, deeming the clarification necessary to prevent unnecessary public anxiety. ASEF further cautioned Nigerians against falling victim to emerging scams involving fabricated messages and fraudulent websites designed to extract money from unsuspecting citizens.

Kuta advised the public to rely exclusively on verified government communication channels for policy updates and tax information.

Beyond addressing the vehicle tax misinformation, ASEF expressed support for legitimate fiscal reforms currently being implemented by the Federal Government. The forum highlighted encouraging early results from these initiatives, particularly regarding improved revenue distribution at the subnational level.

“The ongoing tax reforms are beginning to show positive outcomes. We are seeing increased VAT inflows to states, and more importantly, a more equitable distribution that supports less economically advantaged states,” Kuta noted.

This redistribution effect appears particularly significant for states with weaker economic bases, which are now reporting enhanced capacity to meet basic obligations and fund critical development sectors, according to ASEF’s assessment.

The forum specifically praised Finance Minister Taiwo Oyedele for his reform-driven approach to fiscal policy. They also commended Zacch Adedeji, Chairman of the Nigeria Revenue Service (NRS), for strengthening tax administration systems and improving communication with taxpayers and the general public.

“We salute the Minister of Finance, Taiwo Oyedele, and the Chairman of the Nigeria Revenue Service, Zacch Adedeji, for their commitment to building a tax system that works for the country. Their efforts are helping to restore confidence and improve revenue outcomes,” the statement added.

The Arewa Forum’s endorsement comes at a critical time for Nigeria’s fiscal reform agenda, as the government attempts to diversify revenue sources away from traditional oil dependence while improving collection efficiency and compliance.

Economic analysts note that Nigeria’s tax-to-GDP ratio remains among the lowest globally at approximately 6 percent, significantly below the 15 percent threshold recommended for sustainable development. The ongoing reforms aim to address this structural weakness while ensuring more equitable distribution of the resulting revenues.

ASEF acknowledged that comprehensive fiscal transformation requires patience, emphasizing that while initial signs are promising, sustained implementation and public cooperation remain essential for long-term success.

“As stakeholders in national development, Nigerians must not only support reforms but also hold institutions accountable through informed engagement. This is how we build a system that is both fair and effective,” Kuta concluded.

The organization called for continued collaboration between government institutions and citizens, stressing that reliable information and responsible civic participation are fundamental to building trust and advancing economic stability across Nigeria’s diverse regions.