The Bola Tinubu administration is reportedly preparing to withdraw the controversial Tax Reform Bills submitted to the National Assembly just two months ago. This decision follows mounting criticism, particularly from northern governors and traditional leaders, who decried the proposed changes as detrimental to their region.
The National Economic Council (NEC), chaired by Vice President Kashim Shettima, convened yesterday and recommended the withdrawal of the bills to address stakeholder concerns. Governor Inuwa Yahaya of Gombe State, speaking for the Northern Governors’ Forum, criticized the bills for proposing a Value Added Tax (VAT) redistribution model that prioritizes company headquarters over the actual locations of goods and services consumption.
“We unanimously reject the amendments and urge the National Assembly to oppose any legislation that jeopardizes the well-being of our people,” Yahaya stated. He emphasized that while the forum supports national growth, fairness and equity must guide any fiscal reforms.
President Bola Tinubu had presented the four bills—the Nigeria Tax Bill, Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and Joint Revenue Board Establishment Bill—on September 3 via a letter to the Speaker of the House. He argued that the reforms would enhance taxpayer compliance and strengthen fiscal institutions. However, the bills sparked nationwide debate, with critics labeling them as inequitable.
Governors from other regions also expressed reservations. Governor Seyi Makinde of Oyo State revealed that NEC’s recommendation aimed to foster broader consultations and consensus. “The bills will be withdrawn to allow wider stakeholder engagement,” Makinde explained, adding that misinformation had fueled public opposition.
In a related statement, Bayo Onanuga, Special Adviser to the President, clarified that the proposed VAT model seeks to correct inequalities by allocating revenue based on consumption rather than tax remittance location. “This ensures northern states producing essential goods benefit fairly,” he said.
Despite the controversy, the presidency remains optimistic about refining and reintroducing the bills. Governors Charles Soludo (Anambra), Babagana Zulum (Borno), and others present at the NEC meeting agreed that the reforms could transform Nigeria’s fiscal framework if implemented equitably.
This story was originally reported by Daily Trust Newspaper.
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