President Bola Tinubu has rejected a call from the National Economic Council (NEC) to withdraw four key tax reform bills currently before the National Assembly. Despite concerns raised by northern governors, Tinubu insists the legislative process must continue, allowing for input and revisions as needed.
The NEC, led by Vice President Kashim Shettima and including governors from Nigeria’s 36 states, had recommended that the bills be withdrawn for more consultations after objections from the Northern Governors’ Forum. The governors expressed concerns that the proposed VAT distribution model, based on regional derivation, might harm northern interests.
The four bills, known as the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and Joint Revenue Board Establishment Bill, aim to streamline tax collection and simplify administration across Nigeria’s three levels of government. Key elements include eliminating multiple taxation, reforming tax administration, and creating a unified tax structure to foster a fairer and more competitive business environment.
In a statement from his Special Adviser on Information and Strategy, Bayo Onanuga, Tinubu emphasized the legislative process is an opportunity to address concerns and make adjustments without halting progress.
“President Tinubu welcomes further consultation and engagement to address any reservations while the National Assembly considers the bills,” Onanuga said. He highlighted that Tinubu’s tax reform agenda, launched in August 2023, seeks to create a supportive environment for business and investment, essential for Nigeria’s economic growth.
Taiwo Oyedele, chair of the Presidential Fiscal Policy and Tax Reforms Committee, defended the bills, stressing the reforms would create a fairer VAT distribution system that considers where goods and services are consumed. He noted this approach would benefit many regions across Nigeria, addressing inequities in the current system.
The proposed bills are expected to simplify Nigeria’s tax structure by consolidating several taxes, including VAT, company and personal income taxes, and excise duties. A new Joint Revenue Board is also proposed to unify federal and state tax authorities, alongside a tax ombudsman to protect taxpayer rights.
With the President’s commitment to these reforms, the bills will continue through the legislative process, with NEC and other stakeholders invited to provide feedback. Tinubu emphasized that while views on the bills may vary, the need for an overhaul of Nigeria’s tax laws remains critical to advancing national development.