- Presidency: Reform Bills Won’t Enrich Wealthier States
- Northern Governors, Lawmakers Oppose Derivation-Based VAT Model
- Ekiti Caucus, Kukah, and Gumi Voice Support for Fiscal Reforms
President Bola Tinubu has directed the Ministry of Justice to collaborate with the National Assembly to address concerns raised by Nigerians over the contentious Tax Reform Bills. This directive comes amidst growing opposition from northern governors and lawmakers, as well as public protests.
The Tax Reform Bills – Nigeria Tax Bill 2024, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and Joint Revenue Board (Establishment) Bill – have sparked nationwide debate. Critics argue that the proposed reforms could disrupt fiscal federalism by centralizing tax authority and diminishing state revenues.
In a statement issued by the Minister of Information and National Orientation, Mohammed Idris, the Presidency reaffirmed its commitment to addressing genuine concerns through legislative consultation.
“President Tinubu has directed the Federal Ministry of Justice and relevant officials who worked on the drafts to ensure all concerns are addressed before the bills are passed,” Idris stated.
Opposition and Public Debate
The Northern Governors’ Forum recently rejected the derivation-based VAT-sharing model proposed in the bills, citing potential adverse effects on their financial autonomy. Borno State Governor Babagana Zulum warned that the changes would disproportionately benefit Lagos and Rivers states, urging comprehensive reviews instead.
Meanwhile, some northern youths staged a protest at the National Assembly on Tuesday in support of the bills. Protest leader Tijani Mohammed emphasized that reforms are necessary for national progress, dismissing critics as “enemies of progress.”
Prominent figures, including Sheikh Ahmad Gumi and Catholic Bishop Hassan Kukah, have voiced support for the reforms. Gumi described the bills as a step towards economic improvement, urging a review of the contentious VAT model. Kukah lauded the initiative as a means to curb financial recklessness and enhance fiscal management.
Legislative Tensions
The debate reached the House of Representatives, where discussions became rowdy during a session on Tuesday. Ekiti lawmaker Akin Rotimi’s expression of support for the bills incited backlash from colleagues, who disrupted proceedings. Speaker Tajudeen Abbas intervened, appealing for order while acknowledging the sensitive nature of the reforms.
The Senate, despite opposition, advanced the bills to the second reading stage. In response, the Presidency maintained that critics lack factual understanding of the proposals.
The reforms, according to the government, aim to simplify taxation, promote economic inclusivity, and ensure sustainable revenue for critical sectors.
Call for Dialogue and Review
As debates continue, stakeholders including the National Economic Council and the Arewa Dignity Advancement Initiative have called for more consultations to refine the bills. Advocacy groups have urged the National Assembly to prioritize inclusive decision-making and address concerns about economic hardship and regional inequality.
President Tinubu’s directive underscores the administration’s commitment to balancing reform objectives with public accountability. The outcome of the legislative review will determine the trajectory of Nigeria’s fiscal policies and their impact on governance and development.
