President Bola Tinubu has confirmed that the four tax reform bills recently submitted to the National Assembly will remain in the legislative pipeline, despite recommendations from the National Economic Council (NEC) to withdraw them for further consultations.
In a statement issued by Tinubu's Adviser on Information and Strategy, Bayo Onanuga, the president emphasized that the legislative process would allow for stakeholder input and revisions as needed, ensuring transparency and inclusivity.
During Thursday's NEC meeting at the State House, Abuja, chaired by Vice President Kashim Shettima, state governors and other council members expressed concerns over aspects of the bills.
However, Tinubu underscored the importance of maintaining the bills in the National Assembly to facilitate debate and legislative review, welcoming additional consultations to address any reservations raised by stakeholders.
The four proposed laws—the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and Joint Revenue Board Establishment Bill—are integral to Tinubu's larger economic strategy, which aims to overhaul Nigeria’s tax administration and make the system more efficient.
Tinubu’s administration had previously tasked the Presidential Committee on Tax and Fiscal Policy Reform, set up in August 2023, to work extensively on restructuring Nigeria's tax policies.
This committee gathered input from various sectors, including business owners, government agencies, students, and trade associations across Nigeria’s geopolitical zones.
Key Components of the Tax Reform Bills
Nigeria Tax Bill: This bill aims to address multiple taxation by simplifying tax obligations for businesses and individuals, boosting Nigeria’s economic competitiveness.
Nigeria Tax Administration Bill (NTAB): Designed to standardize tax administration across all governmental tiers, this bill would help unify federal, state, and local tax processes, easing compliance for taxpayers.
Nigeria Revenue Service (Establishment) Bill: This bill would establish the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS), reflecting its mandate as a federal revenue agency.
Joint Revenue Board Establishment Bill: This bill proposes forming a Joint Revenue Board to replace the Joint Tax Board, coordinating federal and state tax authorities and establishing an Office of Tax Ombudsman to protect taxpayer rights.
The reforms intend to streamline and consolidate existing tax laws, including Company Income Tax, Personal Income Tax, Capital Gains Tax, Petroleum Profits Tax, Tertiary Education Tax, and VAT, into a unified system that will reduce administrative complexity.
Support and Concerns from the Northern Region
The Arewa Think Tank (ATT), a prominent Northern advocacy group, voiced its support for the reforms, dismissing speculation that the bills were targeting Northern states. Muhammad Alhaji Yakubu, the ATT convener, stated that the reforms, particularly the VAT derivation model, are designed to create a fairer revenue-sharing system across Nigeria, benefiting all states equitably. He also urged Northern governors to reconsider their stance on the reforms.
Yakubu further defended Tinubu against accusations of undermining the North, highlighting ongoing government projects such as the Maradi-Kano rail line and increased support for education through student loans, which disproportionately benefit Northern students.
Looking Ahead
President Tinubu reaffirmed his commitment to economic reforms aimed at improving Nigeria’s tax system, welcoming NEC’s advisory role while stressing that the bills’ progression in the National Assembly aligns with democratic principles. Tinubu also pledged that his administration would continue to work collaboratively with regional leaders and other stakeholders to ensure that the tax reforms serve Nigeria’s broader development agenda.
With legislative deliberations underway, Tinubu urged patience and constructive engagement, underscoring his administration’s dedication to creating a tax system that fosters economic growth, equity, and transparency.
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