The National Economic Council (NEC) has called on President Bola Tinubu to withdraw the recently proposed Tax Reform Bills from the National Assembly. The council, during its 144th meeting held at the Presidential Villa in Abuja on Thursday, expressed the need for broader consultations and consensus-building before moving forward with the tax changes.
Oyo State Governor, Seyi Makinde, who spoke to journalists after the NEC meeting, stated that the council members agreed on the importance of achieving a stronger consensus on the proposed tax reforms.
“NEC noted the need for sufficient alignment on the proposed reforms and recommended the withdrawal of the tax reform bills,” he explained. This recommendation, he added, is intended to ensure that the Nigerian public has a clear understanding of the proposed reforms and that their interests are carefully considered.
Governor Makinde further emphasized that “we saw the gap and decided that there is a need for a wider consultation.” He explained that NEC’s stance aims to serve the nation’s best interests by encouraging dialogue with various stakeholders across the country.
President Tinubu’s administration, along with the Federal Executive Council, has previously endorsed these tax reforms, aiming to improve Nigeria’s tax system. The proposed bills are part of a wider initiative to streamline tax processes, reduce redundancies, and increase overall efficiency in the nation’s tax administration.
After a comprehensive review of Nigeria’s tax policies that began in August 2023, the Federal Government presented four executive bills to the National Assembly containing these reforms.
The call for a pause by the NEC comes amid opposition from some quarters, notably the Northern Governors’ Forum. Just a few days earlier, on October 28, governors from the 19 Northern states expressed strong concerns over the new derivation-based approach to Value-Added Tax (VAT) distribution included in the tax reform bills.
According to a communiqué read by Governor Muhammed Yahaya of Gombe State, who chairs the forum, the northern governors believe the VAT changes could undermine the interests of northern states and other sub-national governments.
