Reasons Northern Governors Reject Tinubu’s Tax Reform Bill, Urge National Assembly to Dismiss It
By Ayorinde Oluokun/Abuja
The Northern States Governors’ Forum has voiced strong opposition to the Tax Reform Bills recently presented to the National Assembly by President Bola Ahmed Tinubu. This decision was made during a meeting held on October 28, 2024, with the Northern Traditional Rulers’ Council.
In a communique signed by Forum Chairman Governor Muhammad Inuwa Yahya, the governors particularly criticized the proposed amendment to the Value Added Tax (VAT) structure, which would shift to a derivation-based model. They argued that this change would negatively impact the interests of their constituents.
The statement expressed concern over the Bill’s content, asserting that it contradicts the welfare of the northern region and called on lawmakers from the area to oppose the Tax Amendment Bill. “The Forum notes with dismay the contents of the recent Tax Reform Bill forwarded to the National Assembly. The proposed shift to a derivation-based VAT distribution ignores where goods and services are consumed,” the communique stated.
The governors emphasized their support for equitable national policies that promote growth while ensuring no region is marginalized. They reiterated their commitment to policies that advance national development but insisted on fairness in implementation.
On October 3, President Tinubu submitted four tax reform bills to the National Assembly, aiming to align them with his administration’s goals. These include the Nigeria Tax Bill 2024, which seeks to establish a comprehensive tax regulation framework, and the Tax Administration Bill, designed to clarify legal structures for tax management and reduce disputes.
Other bills include the Nigeria Revenue Service Establishment Bill, aimed at replacing the Federal Inland Revenue Service Act, and the Joint Revenue Board Establishment Bill, which proposes the creation of a tax tribunal and ombudsman to handle tax issues.
President Tinubu highlighted that these reforms are intended to strengthen Nigeria’s fiscal institutions and align with his broader development objectives for the country.
