Breaking: NEC calls for removal of tax reforms bill

The National Economic Council (NEC) has recommended that President Bola Tinubu immediately retract the proposed Tax Reforms Bill from the National Assembly to allow for broader consultation and consensus-building among Nigerians.

Oyo State Governor, Seyi Makinde, disclosed this on Thursday during a briefing with State House correspondents following the 144th NEC meeting, which was chaired by Vice President Kashim Shettima at the Presidential Villa in Abuja.

Makinde emphasized that council members believe further engagement with stakeholders is essential to foster understanding and alignment on the proposed tax reforms. “NEC noted the need for sufficient alignment on the proposed reforms and recommended the withdrawal of the tax reform bill,” he said, adding that the decision aims to benefit the entire country.

“We identified a gap and agreed that broader consultation is necessary,” Makinde explained, stressing that the council’s recommendation reflects the importance of obtaining public buy-in for tax reform.

This recommendation follows recent endorsements by President Tinubu and the Federal Executive Council of policy initiatives aimed at modernizing Nigeria’s tax administration system. These reforms, introduced after a comprehensive review of tax laws since August 2023, are intended to streamline processes, enhance efficiency, and remove redundancies across the country’s tax system. The National Assembly is currently reviewing four executive bills related to the tax reforms.

NEC’s call for the bill’s withdrawal comes shortly after Northern Governors voiced their concerns over the proposed reform. On October 28, 2024, the Northern Governors’ Forum, comprising governors from 19 northern states, rejected the bill’s new derivation-based model for Value-Added Tax (VAT) distribution, arguing it would undermine the interests of northern states and other sub-nationals.

Governor Muhammed Yahaya of Gombe State, the forum’s chairman, noted in a communiqué that the model proposed in the tax reform bill could disadvantage the northern region, calling for a reconsideration of its implementation.