President Bola Tinubu has rejected the National Economic Council’s (NEC) recommendation to withdraw the controversial tax reform bills currently under consideration.
During the 144th NEC meeting, chaired by Vice President Kashim Shettima, the council advised withdrawing the bills after the governors of 19 northern states convened in Kaduna with renowned traditional rulers.
At the meeting, they expressed their opposition to the Nigeria Tax Reform Bill, citing concerns that its provisions do not serve the interests of the North and other sub-nations, particularly regarding the proposed amendment to the distribution of the Value Added Tax (VAT).
On September 3, President Tinubu transmitted four tax reform bills to the National Assembly. While on vacation in London, he sent a letter addressed to the Speaker of the House, Abbas Tajudeen, which was read during the day’s plenary session.
These bills include the Nigeria Tax Bill 2024, aimed at establishing a comprehensive fiscal framework for the nation’s taxation, and the Tax Administration Bill, designed to create a clear legal structure for tax collection and minimize disputes.
The other two bills are the Nigeria Revenue Service Establishment Bill, which will repeal the Federal Inland Revenue Service Act to create the Nigeria Revenue Service, and the Joint Revenue Board Establishment Bill, which will establish a tax tribunal and a tax ombudsman.
President Tinubu stated that these bills are intended to support his administration’s goals and reinforce fiscal institutions in Nigeria. In response to NEC’s recommendation, Tinubu, through a statement issued by his media aide Bayo Onanuga, urged the council to allow the legislative process to continue.
“President Bola Tinubu has received the National Economic Council’s recommendation that the tax reform bills already sent to the National Assembly be withdrawn for further consultation.
“President Tinubu commends the National Economic Council members, especially Vice President Kashim Shettima and the 36 State Governors, for their advice. He believes that the legislative process, which has already begun, provides an opportunity for inputs and necessary changes without withdrawing the bills from the National Assembly.
“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 while the National Assembly considers them for passage.”
The president said further imputes could be made during public hearings at parliament, explaining that the tax committee which put up the proposal consulted widely.
“When President Tinubu set up the Presidential Committee on Tax and Fiscal Policy Reform in August 2023, he had only one objective: to reposition the economy for better productivity and efficiency and make the operating environment for investment and businesses more conducive. This objective remains more critical even today than ever before.
“The Committee worked for over a year and received inputs from various segments of society across the geopolitical zones, including trade associations, professional bodies, different Ministries and Government Agencies, Governors, traders, students, business owners, and the organised private sector.
“The tax reform bills that emerged were distilled from the extensive work of the Presidential Committee.
“The tax bills before the National Assembly aim to streamline Nigeria’s tax administration processes, completely overhaul the nation’s tax operations, and align them with global best practices.
