President Bola Tinubu has declared that the controversial tax reform bills will remain in the National Assembly, pushing back against a recommendation from the National Economic Council (NEC) calling for their withdrawal to allow for further consultation.
The bills, introduced to revamp Nigeria’s tax structure, have stirred debate, with critics voicing concerns over their potential economic impacts and equity issues.
The President’s position was communicated through a statement by his Special Adviser on Information and Strategy, Bayo Onanuga.
According to the statement, President Tinubu expressed appreciation for the NEC’s advice but emphasized that the legislative process, already underway, provides ample opportunity for amendments and stakeholder input without halting proceedings.
“While urging the NEC to allow the process to take its full course, President Tinubu welcomes further consultations and engagement with key stakeholders to address any reservations about the bills,” the statement read.
Tinubu, who established the Presidential Committee on Tax and Fiscal Policy Reform in August 2023, underscored the urgency of the tax reforms to improve Nigeria’s economic environment and make it more conducive for investment and growth.
The NEC, led by Vice President Kashim Shettima, raised concerns about the bills during its meeting on Thursday, calling for their withdrawal from the National Assembly.
The council cited insufficient consultation with state governments and the need for greater alignment across all levels of government to ensure fair and inclusive reform.
Governor Seyi Makinde of Oyo State, who briefed journalists, stressed the importance of gathering broader input to ensure the laws reflect the interests of all Nigerians.
“We need wider consultations and consensus around these reforms for the benefit of the entire country,” Governor Makinde stated.
He highlighted ongoing miscommunication and misinformation about the bills, noting that alignment among stakeholders is crucial.
Adding to the opposition, the influential Northern Governors’ Forum recently voiced its disapproval, particularly with the proposed value-added tax (VAT) sharing formula in one of the bills.
During a forum meeting in Kaduna, the governors argued that the VAT distribution unfairly benefits states where companies are headquartered, often in the South, over states where the goods and services are actually consumed.
“This VAT-sharing method is inequitable,” said Gombe State Governor Inuwa Yahaya, the forum’s chairman. “The Northern Governors’ Forum calls on lawmakers to oppose any bill that could harm the well-being of our people. We are not against policies aimed at national development, but we insist on equity and fairness.”
The collective dissent from both NEC and the Northern Governors’ Forum marks a significant hurdle for the tax reform bills, with state leaders highlighting that the current provisions might disproportionately impact certain regions.
These developments illustrate the challenges facing Tinubu’s administration as it works to enact broad economic changes amid divergent regional interests and concerns about fairness.
The President’s decision to keep the bills in the National Assembly underscores his commitment to pursuing tax reform but also places pressure on lawmakers to carefully consider amendments that address these widespread concerns.
As consultations continue, the final form of the tax reforms remains uncertain, with national unity and regional equity now at the center of the debate.