By Ammar M. Rajab President Bola Tinubu has rejected the recommendation from the National Economic Council (NEC) to withdraw the controve...
By Ammar M. Rajab
President Bola Tinubu has rejected the recommendation from the National Economic Council (NEC) to withdraw the controversial tax reform bills currently under consideration by the National Assembly.
The NEC, presided over by Vice President Kashim Shettima, proposed the withdrawal of the bills at its 144th meeting. This recommendation followed opposition from northern governors and traditional rulers who, in a communiqué issued after their meeting in Kaduna, criticized the bills as detrimental to the interests of northern states, particularly objecting to proposed amendments to the Value Added Tax (VAT) distribution.
The tax reform bills, transmitted by Tinubu to the National Assembly on September 3, include the Nigeria Tax Bill 2024, aimed at providing a comprehensive fiscal framework for taxation; the Tax Administration Bill, designed to establish clear regulations and reduce disputes; the Nigeria Revenue Service Establishment Bill, which would replace the Federal Inland Revenue Service Act; and the Joint Revenue Board Establishment Bill, proposing a tax tribunal and tax ombudsman.
According to Tinubu, these reforms support his administration’s goal of strengthening fiscal institutions and enhancing Nigeria’s tax framework. In a statement issued by his media aide, Bayo Onanuga, on Friday, Tinubu responded to the NEC recommendation, urging that the legislative process run its full course.
“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the National Economic Council’s recommendation that the tax reform bills already sent to the National Assembly be withdrawn for further consultation,” the statement read. Tinubu commended the NEC, Vice President Shettima, and the governors for their input, stating that further adjustments could be made during legislative hearings without halting the bills' progress.
Tinubu also highlighted the extensive consultations carried out by the Presidential Committee on Tax and Fiscal Policy Reform, established in August 2023, which included feedback from trade associations, professional bodies, government ministries, agencies, governors, traders, and the organized private sector. This diverse input informed the current proposals, designed to align Nigeria's tax operations with global standards.
The president emphasized the importance of the reform bills, noting, “These bills are crucial for streamlining Nigeria’s tax administration processes, fully overhauling the tax system, and fostering a more conducive environment for businesses and investments.” He encouraged further engagement with stakeholders to address any concerns.
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