President Bola Tinubu has firmly rejected the recommendations from the National Economic Council (NEC) and the Northern Governors' Forum to withdraw the proposed tax reform bills currently before the National Assembly. This decision comes in response to growing concerns and opposition regarding the reforms, particularly from northern state governors who argue that the new tax model could disadvantage their regions.
During a recent NEC meeting, members advised President Tinubu to withdraw the tax reform bills to facilitate broader consultations and consensus-building among stakeholders. Oyo State Governor Seyi Makinde emphasized that this recommendation was made for the benefit of all Nigerians, highlighting the need for alignment on the proposed reforms. The NEC's call followed a meeting of the Northern Governors on October 28, where they expressed strong opposition to the new derivation-based model for Value Added Tax (VAT) distribution outlined in the reform bills.
In a statement issued today by Bayo Onanuga, Special Adviser to the President on Information and Strategy, Tinubu acknowledged the NEC's advice but insisted that the legislative process should continue without interruption. He stated, "The ongoing legislative process provides an opportunity for inputs and necessary changes without withdrawing the bills from consideration." The President reassured stakeholders that the proposed reforms are designed to enhance Nigeria's tax administration, improve efficiency, and ultimately benefit all states across the federation.
The tax reform initiative aims to streamline Nigeria’s tax laws and operations, addressing issues such as multiple taxation and administrative inefficiencies. The proposed bills include significant changes to existing frameworks, including a complete overhaul of tax administration processes and the establishment of a new revenue service.