President Bola Tinubu has reiterated his support for allowing the tax reform bills currently in the National Assembly to proceed through the legislative process, rejecting calls for their withdrawal. In a statement from Special Adviser Bayo Onanuga, the President emphasized his belief in a thorough legislative review that allows for input and necessary adjustments without recalling the bills from parliament.
Tinubu acknowledged that the National Economic Council (NEC) had recommended pausing the bills for broader consultation. He expressed appreciation for the advice of Vice President Kashim Shettima and the 36 state governors, particularly in their desire for stakeholder engagement, but affirmed his commitment to a structured legislative route. “He believes the legislative process, already in motion, will incorporate input and amendments as needed without withdrawing the bills,” the statement explained.
Encouraging open dialogue to address concerns, Tinubu underscored his administration’s vision of building a stronger economic foundation through tax reforms. Launched in August 2023 with the Presidential Committee on Tax and Fiscal Policy Reform, the initiative seeks to increase productivity and create a more favorable business climate.
On Thursday, NEC expressed apprehensions over the reform bills, advising Tinubu to withdraw them temporarily to foster additional stakeholder engagement. Chaired by Vice President Shettima, the Council emphasized the need for an inclusive approach to tax reform. Oyo State Governor Seyi Makinde, speaking to journalists after the meeting, stated that NEC stressed fair taxation, responsible borrowing, and prudent spending as central to reform. “NEC reviewed a presentation from the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, emphasizing the need for broad-based input to ensure reforms serve all Nigerians,” Makinde said.
In a related response, the Northern Governors’ Forum voiced strong objections to parts of the tax proposals, particularly the value-added tax (VAT) allocation structure. Gombe State Governor Inuwa Yahaya, who led the forum’s meeting in Kaduna, criticized the VAT distribution model, noting that it relies on the location of company headquarters rather than where goods and services are consumed. “This practice disadvantages certain regions,” Yahaya explained, urging northern legislators to oppose the bills in their current form.
The meeting brought together Governors Uba Sani (Kaduna), Dauda Lawal Dare (Zamfara), Abdullahi Sule (Nasarawa), Babagana Zulum (Borno), Bala Mohammed (Bauchi), AbdulRahman AbdulRazaq (Kwara), Ahmadu Umaru Fintiri (Adamawa), and other state representatives. Governor Yahaya reiterated the forum’s stance: “The Northern Governors’ Forum supports growth-oriented policies but advocates for equitable implementation to prevent regional disparities.”
