Three days after Northern Governors kicked against President Bola Tinubu’s Tax Reforms Bill, which is presently before the National Assembly for consideration, the National Economic Council on Thursday told the President to immediately withdraw the Bill to allow for wider consultations and consensus building.
Recall that President Bola Tinubu and the Federal Executive Council recently endorsed new policy initiatives to streamline Nigeria’s tax administration processes.
The Federal Government had said that the new laws were meant to enhance efficiency and eliminate redundancies in the nation’s tax operations.
The reforms emerged after a review of existing tax laws since August 2023. The National Assembly is considering four executive bills containing these tax reform efforts.
But at a meeting on October 28, 2024, Governors of the 19 Northern States, under the platform of the Northern Governors’ Forum, rejected the new derivation-based model for Value-Added Tax distribution in the new Tax Reforms Bill before the National Assembly.
A communiqué read by the Chairman of the forum, Governor Muhammed Yahaya of Gombe State, said the proposition negates the interest of the North and other sub-nationals.
However, Oyo State Governor Seyi Makinde disclosed while briefing State House correspondents at the end of the 144th NEC meeting chaired by Vice President Kashim Shettima, at the Council Chamber, Presidential Villa, Abuja that they advised Tinubu to withdraw the bill.
Makinde explained that the council members agreed that it was necessary to allow for consensus building and understanding of the bill among Nigerians.
According to him, “NEC noted the need for sufficient alignment on the proposed reforms and recommended the withdrawal of the Tax Reforms Bill.”
Makinde added that the decision was made for the benefit of the entire country and emphasized the need for further consultations regarding the bill.
“We saw the gap and decided that there is a need for a wider consultation,” he added
