Nigerian Government Stands Firm on Tax Reform Bills Amidst Calls for Withdrawal

 

The Nigerian government, led by President Bola Tinubu, has decided not to withdraw the contentious tax reform bills currently before the National Assembly, despite recommendations from the National Economic Council (NEC) to revisit the proposal. This position was clarified on Friday in a statement signed by Bayo Onanuga, Special Adviser to the President on Information and Strategy.

In the statement, President Tinubu acknowledged the NEC's advice, led by Vice President Kashim Shettima and the 36 state governors, to reconsider the tax bills. However, Tinubu emphasized that the legislative process underway would allow for necessary adjustments and input from various stakeholders without the need for withdrawal.

The proposed tax reforms, which have sparked public debate, include provisions aimed at reducing multiple taxation and simplifying tax compliance for businesses and individuals. Notably, the Northern State governors recently voiced concerns, particularly regarding the sharing of Value Added Tax (VAT) revenue on a derivation basis.

Tinubu’s administration encourages ongoing consultations with key stakeholders to address any concerns as the National Assembly deliberates on the bills. The government views these reforms as essential to enhancing Nigeria’s productivity and fostering a more investment-friendly environment.

The statement further highlighted the extensive work of the Presidential Committee on Tax and Fiscal Policy Reform, which gathered input from a wide array of societal segments, including professional bodies, trade associations, business owners, and local governments. Key elements of the tax reform include the introduction of the Nigeria Revenue Service (NRS) to replace the Federal Inland Revenue Service, with a broader mandate as the revenue agency for the entire federation, and the establishment of a Joint Revenue Board to unify tax administration across federal, state, and local levels. Additionally, an office of the Tax Ombudsman will be created to protect taxpayers' rights and streamline dispute resolution.

The presidency concluded that while there may be differing perspectives on certain elements, there is a broad consensus on the need to modernize Nigeria's tax system to better serve the nation’s economic goals and promote efficient tax administration across all levels of government.