NEC urges President Tinubu to withdraw tax reforms bill amid Northern Governors’ opposition

Three days after Northern Governors expressed their opposition to President Bola Tinubu’s Tax Reforms Bill, the National Economic Council (NEC) has advised the President to withdraw the bill for broader consultations and consensus building.

The call comes in light of recent policy initiatives endorsed by President Tinubu and the Federal Executive Council aimed at streamlining Nigeria’s tax administration processes.

These reforms, developed after a review of existing tax laws since August 2023, are intended to enhance efficiency and eliminate redundancies in the nation’s tax operations.

The National Assembly is currently considering four executive bills related to these tax reform efforts.

At a meeting on October 28, 2024, the Governors of the 19 Northern States, convened under the Northern Governors’ Forum, rejected the new derivation-based model for Value-Added Tax (VAT) distribution proposed in the bill.

In a communiqué delivered by the forum’s Chairman, Governor Muhammed Yahaya of Gombe State, the governors argued that the proposal undermines the interests of the North and other sub-national entities.

ALSO READ : HURIWA demands Visa Ban on Judges over controversial rulings in Rivers State

Following the NEC meeting on Thursday, Oyo State Governor Seyi Makinde addressed reporters, revealing that council members collectively advised President Tinubu to withdraw the bill.

Makinde emphasized the importance of allowing for consensus and understanding among Nigerians regarding the proposed reforms.

“NEC noted the need for sufficient alignment on the proposed reforms and recommended the withdrawal of the Tax Reforms Bill,” he stated, adding that the decision was made for the benefit of the entire country.

Makinde underscored the necessity for wider consultations, saying, “We saw the gap and decided that there is a need for a wider consultation.”

The NEC’s recommendation reflects a growing concern over the potential impact of the bill and the need for inclusive dialogue in the legislative process.