• NEC Demands More Consultations
• Proposed Bill Not Against North – Onanuga
In a move to address growing discontent, the National Economic Council (NEC) has advised President Bola Tinubu to withdraw the contentious tax reform bills from the National Assembly.
The council, comprising representatives from various states and chaired by Vice President Kashim Shettima, aims to allow for wider consultations with stakeholders to avoid regional discontent and foster a sense of national consensus on the reforms.
The recommendation follows an NEC meeting on Thursday, during which members underscored the importance of aligning tax policies with regional interests.
This advisory comes as Tinubu’s administration seeks legislative approval for four new tax bills intended to streamline tax administration, enhance compliance, and reduce redundancies across federal, state, and local levels.
Earlier, on October 3, Tinubu had urged the National Assembly to pass these reform bills, which include the Nigeria Tax Bill, Tax Administration Bill, and Joint Revenue Board Establishment Bill.
However, the Northern States Governors Forum (NSGF), representing 19 northern states, voiced strong opposition after a joint meeting with the Northern Traditional Rulers’ Council in Kaduna on October 28, insisting that any reform must not jeopardize regional interests.
Reacting to the Northern governors’ concerns, Presidential spokesperson Bayo Onanuga assured that the reforms were designed to benefit all regions.
“We commend the governors and traditional rulers for their support of President Tinubu, especially in security matters. However, it is essential to clarify any misunderstandings around the tax reforms being undertaken by this administration,” he said.
Northern Governors Demand Safeguards for Regional Interests
The NSGF, a collective of northern governors, has urged the National Assembly to reject any tax reform legislation perceived as unfavorable to the northern region.
During their October 28 gathering, the governors called for national policies that ensure equitable treatment across all zones, emphasizing that the reforms should not marginalize any area.
Their stance reflects growing unease in the region about the potential impacts of the proposed bills.
A New Vision for Nigeria’s Tax System: Presidency Defends Reforms
Onanuga, highlighting the necessity of the proposed reforms, explained that they were not crafted to undermine any part of the country but rather to streamline tax operations and create a more equitable system.
“President Tinubu and the Federal Executive Council recently endorsed these policy initiatives after a detailed review of existing tax laws,” he said, emphasizing that the reforms would “simplify tax obligations, reduce multiple taxation, and foster economic competitiveness nationwide.”
Among the proposed reforms are the Nigeria Tax Bill, which aims to eliminate redundancies and unify tax obligations, and the Nigeria Tax Administration Bill, which seeks to harmonize tax processes across federal, state, and local jurisdictions.
Additionally, the Nigeria Revenue Service (Establishment) Bill would rename the Federal Inland Revenue Service to reflect its role as a federation-wide agency, while the Joint Revenue Board Establishment Bill proposes a collaborative board encompassing federal and state tax authorities.
NEC Calls for Wider Consultations to Align Stakeholders
After the NEC meeting on Thursday, Oyo State Governor Seyi Makinde emphasized the council’s desire for broad-based support on tax reforms.
“Today, NEC received a presentation from the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, which focused on fair taxation, responsible borrowing, and sustainable spending,” Makinde noted.
He further stressed the need for improved revenue performance across key indices like tax-to-GDP ratio.
Governor Makinde explained that NEC recommends withdrawing the tax reform bills to create space for meaningful dialogue with the public.
“There is a need for sufficient alignment between stakeholders for these proposed reforms. The council believes in giving citizens a better understanding of the vision and direction for tax reforms,” he added.
