- The move came days after the Northern Governors’ Forum faulted the bill
The National Economic Council (NEC), the umbrella body of Nigeria’s Governors and top federal government officials under the chairmanship of the Vice President, on Thursday expressed reservations over the Tax Reform Bill forwarded by President Bola Ahmed Tinubu to the National Assembly.
The bill was forwarded to NASS based on the report and recommendations of the Presidential Committee on Fiscal and Tax Reforms set up by the President to help boost revenue generation in the country.
NEC unanimously called for the withdrawal of the bill.
This was part of the resolutions reached during the National Economic Council meeting chaired by Vice President Kashim Shettima at the Presidential Villa in Abuja.
Governor Seyi Makinde of Oyo State, who briefed journalists after the NEC meeting, noted the need for sufficient alignment between and amongst the stakeholders for the proposed reforms.
Makinde said NEC observed that adequate consultations needed to be made to get the views of stakeholders including the State Governors to ensure that the law is favourable to all Nigerians.
“NEC today took a presentation from the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms. Their main focus is fair taxation, responsible borrowing, and sustainable spending.
“The Council acknowledged that the country is underperforming on all indices as regards yield from major revenue sources, also tax to GDP ratio and so on.
“So after extensive deliberation, NEC noted the need for sufficient alignment between and amongst the stakeholders for the proposed reforms.
“So Council, therefore, recommend the need to withdraw the bill currently before the National Assembly on tax reforms so that we can have wider consultations and also build consensus around these reforms for the benefit of the entire country, and also to give people, for them to know the vision and where we are moving the country in terms of a tax reform because there’s really a lot of miscommunication, misinformation.”
At their meeting on Monday, October 28, 2024, the 19 Northern Governors, under the platform of the Northern Governors’ Forum, expressed opposition to the new derivation-based model for Value-Added Tax (VAT) distribution in the country.
The Governors who met with traditional rulers from the region led by the Sultan of Sokoto, His Eminence Muhammadu Sa’ad Abubakar III, had asked National Assembly members from the zone not to support the tax bill, just as they demanded equity and fairness.