President Bola Tinubu has responded to the National Economic Council’s (NEC) recommendation, made during its meeting on Thursday at the State House in Abuja, suggesting that the four tax reform bills sent to the National Assembly should be withdrawn for further consultation.

According to a statement from his Adviser on Information and Strategy, Bayo Onanuga, the President commended the NEC members, especially Vice President Kashim Shettima and the 36 State Governors, for their input. However, he believes that the legislative process, already underway, offers a platform for contributions and necessary amendments without the need to withdraw the bills.

This development coincides with a statement of support from the Arewa Think Tank (ATT), a notable Northern group, which insists that the tax reform bills before the National Assembly are not aimed at the 19 Northern States, as has been erroneously speculated.

The four bills under consideration are the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board Establishment Bill.

President Tinubu urged the NEC to allow the process to continue, welcoming further consultations with key stakeholders to address any concerns about the bills while they are being considered for passage.

The statement further explained that when Tinubu established the Presidential Committee on Tax and Fiscal Policy Reform in August 2023, his primary goal was to reposition the economy for improved productivity and efficiency, creating a more conducive environment for investment and business.

This objective remains critical, according to the statement. The Committee, which worked for over a year, gathered input from various sectors across geopolitical zones, including trade associations, professional bodies, different ministries and government agencies, governors, traders, students, business owners, and the organised private sector.

The proposed tax reform bills aim to streamline Nigeria’s tax administration processes, thoroughly overhaul the nation’s tax operations, and align them with global best practices. Onanuga outlined key highlights of the four bills, including:

• The Nigeria Tax Bill: Aims to eliminate multiple taxation and simplify tax obligations for businesses and individuals nationwide, enhancing Nigeria’s competitiveness.
• The Nigeria Tax Administration Bill (NTAB): Proposes new rules governing tax administration in the country, seeking to harmonise processes across federal, state, and local jurisdictions to ease compliance for taxpayers and increase revenue for all levels of government.
• The Nigeria Revenue Service (Establishment) Bill: Seeks to re-establish the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS) to better reflect its role as the revenue agency for the entire federation, not just the federal government.
• The Joint Revenue Board Establishment Bill: Proposes the creation of a Joint Revenue Board to replace the Joint Tax Board, encompassing federal and state tax authorities, and establishing the Office of Tax Ombudsman to protect taxpayer interests and facilitate dispute resolution.

The overarching goal of these bills, as stated, is to effectively coordinate federal, state, and local tax authorities, thereby eliminating the overlapping responsibilities and inefficiencies that have long plagued Nigeria’s tax administration.

Under existing laws, taxes such as Company Income Tax (CIT), Personal Income Tax (PIT), Capital Gains Tax (CGT), Petroleum Profits Tax (PPT), Tertiary Education Tax (TET), Value-Added Tax (VAT), and other taxing provisions are administered separately, each with its legislative framework. The proposed reforms aim to consolidate these various taxes into a unified structure to reduce administrative fragmentation.

While there may be differences in approach or specific provisions among the new tax bills, the need to review tax laws and their administration in alignment with the nation’s overall development agenda is undisputed.

The statement emphasised that Tinubu will continue to value the advice and recommendations of the NEC, an essential constitutional body regarding economic matters. Meanwhile, the Arewa Think Tank (ATT) has publicly supported the tax reform bills in the National Assembly, while defending Tinubu against allegations that the recent power outages in Northern Nigeria were a deliberate attempt to sabotage the region’s economy.

Muhammad Alhaji Yakubu, the Convener of ATT, stated that his group stands with Tinubu on the reforms, urging for broader consultations to build consensus. “It is unfortunate that there are misconceptions suggesting the reform targets the North. We disagree with the idea that the tax reform bill is aimed at the 19 Northern States.”

Yakubu called on Northern governors to reconsider their outright rejection of the bill, especially regarding the proposed shift to a derivation-based model for distributing Value Added Tax (VAT). He believes this change is intended to create a fairer system that will benefit all states.

“We recognise that the ongoing tax reform aims to correct inequities in the current derivation model for distributing VAT revenue. We commend Northern governors and traditional rulers for supporting President Tinubu in addressing security challenges, but we find it crucial to clear up misunderstandings regarding the tax reforms already initiated by Tinubu’s administration.

“We are aware that the new policy initiatives aim to streamline Nigeria’s tax administration processes, enhance efficiency, and eliminate redundancies in the nation’s tax operations. These reforms are critical to improving the lives of Nigerians and are not intended to undermine any region,” the statement concluded.

Regarding conspiracy theories surrounding the power outages in the North, the group condemned the negative insinuations, attributing them to individuals with ulterior motives seeking to create discord between Tinubu’s administration and Northern interests.

“If the federal government truly aimed to cripple the North, it would not be seeking loans to complete the Maradi-Kano rail line, which is of immense economic benefit to the region. The data shows that the majority of beneficiaries of the student loan initiative are Northern students, and the Almajiri Commission, which the President is funding, primarily benefits Northerners.

“We urge some disgruntled politicians not to politicise the power outages. Where President Tinubu deserves praise, he should receive it. If there are concerns, those with access to him should address them directly. The North is benefiting from Tinubu’s government, and we should continue to offer him support. We appeal for more time to assess his administration objectively by May next year.”