Tinubu Stands Firm: Tax Reform Bills to Proceed in National Assembly Amid Calls for Consultation

In response to mounting opposition, President Bola Tinubu has declared that the tax reform bills recently submitted to the National Assembly will not be withdrawn, despite concerns raised by the National Economic Council (NEC) and the Northern Governors' Forum.

According to Bayo Onanuga, the Special Adviser on Information and Strategy, the president believes the legislative process will allow for essential adjustments through input from lawmakers and stakeholders.

 

The tax reform bills, introduced as part of Tinubu’s broader economic agenda, aim to streamline fiscal policies and enhance revenue generation. The President's stance comes after receiving NEC’s recommendation to pause the bills for further consultation. Tinubu, however, emphasized the importance of allowing the legislative process to unfold, while encouraging continued engagement to address any stakeholder concerns.

 

During a recent NEC meeting, chaired by Vice President Kashim Shettima, state governors voiced reservations about the bills. Oyo State Governor Seyi Makinde explained that the Council expressed a need for better alignment among stakeholders, suggesting that a withdrawal would allow for further consensus-building.

“NEC observed that adequate consultations need to be made to incorporate the views of all stakeholders, especially the governors, to ensure fair and favourable outcomes for Nigerians,” Makinde said.

 

The proposals have drawn further resistance from northern governors, who recently convened in Kaduna to address specific grievances, particularly regarding the VAT-sharing structure. Gombe State Governor Inuwa Yahaya, representing the Northern Governors’ Forum, articulated the region’s concerns about the impact on northern states, asserting the need for a tax policy that promotes equitable distribution.

 

“VAT should be allocated based on the location where goods and services are consumed, not just where company headquarters are located. We oppose these reforms in their current form and urge lawmakers to reject any provisions that could harm the North,” Yahaya stated.

 

President Tinubu remains committed to his vision for tax and fiscal policy reform, initially outlined with the establishment of the Presidential Committee on Tax and Fiscal Policy Reform in August. He has reiterated that the bills will advance through the National Assembly, while urging stakeholders to participate in the dialogue and allow the legislative process to address concerns constructively.

 

With the tax reform bills remaining under active consideration, this legislative session is expected to see robust debate as the government seeks to reconcile regional interests with the need for broader economic reform.