President Bola Ahmed Tinubu has directed the Ministry of Justice to collaborate with the National Assembly to address public concerns over the controversial tax reform bills currently under legislative consideration. The President’s directive comes amid mounting criticism and nationwide debates regarding the potential impact of the proposed reforms.
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 sparked opposition, particularly from northern governors and lawmakers, who argue that the reforms could centralize tax authority and diminish state revenues.
In a statement issued by Minister of Information and National Orientation, Mohammed Idris, on Tuesday, Tinubu emphasized his commitment to ensuring accountability and inclusivity in the legislative process. “The President has instructed the Federal Ministry of Justice and other relevant officials to work closely with the National Assembly to address all genuine concerns before these bills are passed,” Idris stated.
This decision follows protests at the National Assembly by northern youths supporting the bills. Displaying placards and chanting slogans, the protesters accused critics of stalling progress. A spokesman for the group, Tijani Mohammed, described the reforms as essential for modernizing Nigeria’s tax system and promoting fairness in revenue distribution.
The proposed VAT redistribution model, which allocates 60% of VAT revenue to states based on consumption, has been a flashpoint for criticism. Northern governors argue the formula would disproportionately benefit wealthier states like Lagos and Rivers, while exacerbating financial challenges in poorer regions.
Despite these concerns, prominent voices such as Catholic Bishop Hassan Kukah and Islamic scholar Sheikh Ahmad Gumi have expressed support for the reforms. Kukah described the bills as a necessary step toward ending financial recklessness, while Gumi called for adjustments to the contentious VAT provisions but praised the overall framework.
Meanwhile, legislative discussions have been marked by tension. The House of Representatives saw heated exchanges on Tuesday as members debated the bills. Lawmakers clashed over their implications, with some arguing they would undermine fiscal federalism and others advocating for their potential to strengthen national revenue systems.
The Presidency defended the bills, asserting they would not weaken federal agencies or impoverish any region. “These reforms aim to enhance transparency, accountability, and economic growth,” the statement read.
As the debate intensifies, Tinubu’s directive to engage stakeholders and address concerns underscores his administration’s determination to balance reform with inclusivity, ensuring the bills reflect Nigeria’s diverse economic realities.
