Tax Reform: Tinubu Rejects Opposition, Stands Firm on Bill

President Bola Tinubu has rejected a recommendation from the National Economic Council (NEC) to withdraw the tax reform bills currently before the National Assembly for further consultation. The President’s Special Adviser on Information and Strategy, Bayo Onanuga, clarified Tinubu’s stance, emphasizing that amendments and stakeholder input can still be made during the legislative process without retracting the bill.

The statement noted, “President Tinubu appreciates the NEC’s advice, particularly from Vice President Kashim Shettima and the 36 state governors, but believes the current legislative course will allow for necessary adjustments during public hearings.”

Tinubu’s response follows a request from the NEC, Nigeria’s primary economic advisory body, which suggested on Thursday that the bill be withdrawn to address concerns from various regions. This position was announced by Oyo State Governor Seyi Makinde, who cited a need for broader alignment and consensus-building among stakeholders after the NEC’s 144th meeting, chaired by Vice President Shettima.

The tax reforms, introduced by Tinubu and the Federal Executive Council, aim to simplify Nigeria’s tax system by establishing a unified revenue service and reducing burdens on businesses and individuals. Developed by the Taiwo Oyedele-led tax committee, the reforms are presented in four bills that collectively target streamlining tax processes, coordinating federal and state taxation, and eliminating duplicate taxes.

The key bills include:

1. Nigeria Tax Bill – Focuses on reducing multiple taxation and enhancing competitiveness by easing tax obligations for businesses.
2. Nigeria Tax Administration Bill – Proposes standardized tax administration across federal, state, and local levels.
3. Nigeria Revenue Service (Establishment) Bill – Renames the Federal Inland Revenue Service to reflect its expanded role.
4. Joint Revenue Board Establishment Bill – Proposes creating the Office of the Tax Ombudsman and coordinating federal-state tax matters.

Despite concerns voiced by the 19 Northern state governors about the potential economic strain and job losses in their regions, the Presidency insists the reforms will unify tax laws, increase efficiency, and ultimately benefit all states.