The National Economic Council (NEC) has voiced strong reservations regarding the Tax Reform Bills submitted by President Bola Tinubu to the National Assembly. These bills were proposed based on recommendations from the Presidential Committee on Fiscal and Tax Reforms, established to enhance Nigeria’s revenue generation. However, NEC unanimously called for the withdrawal of the bill, citing the need for further consultation.
Call for Wider Stakeholder Engagement
During the NEC meeting, chaired by Vice President Kashim Shettima at the Presidential Villa in Abuja, the governors stressed the importance of alignment among all stakeholders. Governor Seyi Makinde of Oyo State, who briefed journalists afterward, noted that NEC saw a need for thorough consultations with stakeholders, including state governors, to ensure the reforms benefit all Nigerians.
“NEC took a presentation from the Chairman of the Presidential Committee on fiscal policy and tax reforms,” Governor Makinde said, highlighting the committee’s focus on fair taxation, responsible borrowing, and sustainable spending. He further emphasized that Nigeria is currently underperforming in major revenue indices, including tax-to-GDP ratio, and reforms require a united approach.
Concerns Over VAT Sharing and Regional Equity
The call for withdrawal follows a recent rejection of some proposals by the influential Northern Governors’ Forum, particularly around the VAT-sharing template in one of the bills. The Northern governors expressed concern over companies remitting VAT based on their headquarters location rather than the place of service consumption, leading to perceived regional inequities.
In a statement, Governor Inuwa Yahaya of Gombe, chair of the forum, called for fairness and urged northern lawmakers to reject any bill that might harm their region’s interests. He clarified that the Northern Governors’ Forum is not opposed to national growth but seeks equitable implementation of policies to avoid marginalization of any geopolitical zone.
Unified Opposition from Northern Governors
Several Northern governors attended the forum’s meeting in Kaduna, including Uba Sani of Kaduna, Dauda Lawal Dare of Zamfara, and Babagana Zulum of Borno, among others. In the communique, Governor Yahaya emphasized that the tax bills, as proposed, do not serve the North’s interests and instructed northern representatives in the National Assembly to oppose them.
The NEC’s position, along with the Northern Governors’ Forum’s rejection, underscores the call for a broader consensus and a need to balance revenue reforms with regional equity to ensure that tax laws are fair and beneficial to all Nigerians.
