President Bola Tinubu has directed the Ministry of Justice to work closely with the National Assembly to address the concerns raised by Nigerians following the controversy trailing the Tax Reforms Bills.
Tinubu, who is in South Africa, handed down the review order on Tuesday as some northern youths stormed the National Assembly in support of the bills.
The bills—the Nigeria Tax Bill 2024, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill—have generated hot debates and contention across the country, with northern governors and lawmakers opposed to their passage.
Critics opine that the reforms could disrupt the balance of fiscal federalism, potentially centralising tax authority and diminishing state revenues.
However, in an effort to alleviate the high level of emotion around the reform legislation, Tinubu instructed the Federal Ministry of Justice and related authorities who worked on the draft to consult with the National Assembly to address all real issues before passing the measures.
This was said in a statement signed by Mohammed Idris, Minister of Information and National Orientation, headed “President Tinubu commits to accountability on tax bills, directs Ministry of Justice to collaborate with NASS on concerns.”
The minister said, “In line with the established legislative procedure, the Federal General welcomes meaningful inputs that can address whatever grey areas there may be in the bill.
“In this vein, President Tinubu has already directed the Federal Ministry of Justice and relevant officials who worked on the drafts to work closely with the National Assembly to ensure that all genuine concerns have been addressed before the bills are passed.”
Notably, at a meeting on October 28, governors from the 19 Northern States, represented by the Northern Governors’ Forum, rejected the new derivation-based model for Value-Added Tax distribution outlined in the tax reform proposals.
They argued that the modifications could have a negative impact on their regions’ financial autonomy.
Three days later, the National Economic Council, which included all 36 state governors, asked the President to remove the Tax Reforms Bill from the National Assembly for extensive deliberations.
However, the President stated that there would be no need to remove the bill from the National Assembly.
Governor Babagana Zulum of Borno State has warned that if the President uses his executive powers to pass the tax bills, millions of Nigerians will suffer the repercussions.
Zulum stated that the proposed VAT-sharing arrangement will primarily benefit Lagos and Rivers states.
However, Nasarawa State Governor Abdullahi Sule, former House Speaker Yakubu Dogara, and a number of other northern politicians supported the proposals.
Nonetheless, the Senate advanced the proposals to a second reading, a decision that has been heavily criticised.
In its statement on Monday, the Presidency stated that most reactions from political leaders and commentators “are not grounded in facts, reality, or sufficient knowledge of the bills.”
It mentioned that the tax bills will not enrich Lagos or Rivers at the expense of northern states.
Corroborating the presidency’s stance, the information minister said, “The fiscal reforms will not impoverish any state or region of the country, nor will they lead to the scrapping or weakening of any federal agencies.”
The Tinubu-led Federal Government welcomed the nationwide debate on the bills, saying, “This is the very essence and meaning of democracy.”
