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Tag: Tax reform Bill

  • No Inheritance Tax in Nigeria’s Tax Reform Bills – Taiwo Oyedele

    No Inheritance Tax in Nigeria’s Tax Reform Bills – Taiwo Oyedele

    The chairman of the Presidential Fiscal Policy and Tax Reform Committee, Taiwo Oyedele, has clarified that the recently proposed tax reform bills do not include any provision for an inheritance tax.

    He made this disclosure via his X (formerly Twitter) handle, dispelling speculation about such a tax in Nigeria’s fiscal policy.

    According to Oyedele, the inheritance tax was abolished in Nigeria in 1996 following the abrogation of the Capital Transfer Tax Decree.

    He explained that inheritance represents a one-time transfer of wealth, either as a gift during the giver’s lifetime or upon their death, and differs fundamentally from recurring income subject to taxation under the proposed tax reforms.

    “Inheritance tax is a one-time wealth transfer. Unlike inheritance tax, family income covered under the tax bills is expected to recur from time to time,” Oyedele stated.

    He further highlighted the provisions of Section 4 of the Nigeria Tax Bill, which defines taxable income. Section 4(3), in particular, addresses taxable income earned by families, stressing that inheritance itself is not taxable under the bill. This approach aligns with existing tax laws, including Section 2(5) of the Personal Income Tax Act (LFN 2004 as amended).

    Read Also: Nigeria spent N5.14tn on mineral fuels import in Q3, says NBS

    Oyedele elaborated on the taxation of family income, noting that “In the case of income of a family recognised under any law or custom in Nigeria as family income, in which the several interests of individual members of the family are indeterminate or uncertain, tax may be imposed only by the territory in which the member of that family who customarily receives that income in the first instance in Nigeria usually resides.”

    He also explained that individual earnings are subject to tax, and when groups such as partnerships, communities, or families earn taxable income collectively, they cannot claim exemption simply because they operate as a group.

    “The income will therefore be taxed in the hands of individual members where their respective shares can be determined; otherwise, the group will be collectively taxed. This ensures equity and prevents a potential loophole in the tax law,” Oyedele said.

    The clarification reinforces the government’s commitment to maintaining transparency and equity in Nigeria’s tax system, while also addressing misconceptions about the scope and implications of the proposed tax reforms.

  • Tax reform: Bill will tackle poverty, increase productivity – Osun APC chieftain

    Tax reform: Bill will tackle poverty, increase productivity – Osun APC chieftain

    One of the leaders of the All Progressives Congress (APC) in Osun Central Senatorial district, Tele Oyegoke, has endorsed President Bola Tinubu’s tax reform, stating it will tackle poverty and boost the nation’s productivity.

    He encouraged residents of the state to keep faith in Tinubu’s administration, highlighting that his economic drive has resulted in increased funds for all three tiers of government.

    Addressing his supporters in Inisa town of Odo-Otin local government area of Osun State on Saturday, Oyegoke appealed to Nigerians, particularly those in Osun State, to support President Bola Tinubu’s new tax proposals.

    Read Also: Osun APC chieftain berates Adeleke’s decision to relocate Airport to Ede

     He said: “The new tax law is designed to bring relief to the small-scale enterprises and most vulnerable members of society. It will tackle poverty and increase productivity. It will also generate more revenue for the country.”

    He clarified that citizens who earn less than N1 million in a year will also be exempted from tax payments, saying, “The tax reform is necessary to bring about positive change and improve the lives of Nigerians.”

    “Nigerians should keep faith with President Bola Tinubu on his patriotic reforms. He has proven that he is capable of driving the country to economic freedom and financial prosperity. This can be confirmed by the increase in revenue available to all tiers of government since May 2023 when he came on board.

    “In Osun State, the budget projection for federal allocation in 2024 is N99.9 billion, but as of the third quarter of the year (end of September), the state had already made N153 billion. What this means is that by the end of the year, the state would have got N180 billion to N190 billion,” he submitted

  • Lagos not major beneficiary of tax reform bill — Gov Sanwo-Olu

    Lagos not major beneficiary of tax reform bill — Gov Sanwo-Olu

    Lagos State Governor, Babajide Sanwo-Olu, has dismissed claims that the state will significantly gain from the federal government’s proposed tax reform, stating that Lagos is in an “extremely comfortable” position.

    The Governor of Borno State, Babagana Zulum, during an interview on Channels Television on December 2, said the proposed Value-added Tax sharing model in the tax reform bills would only benefit Lagos State.

    Also, in an interview with BBC Hausa last Friday, Zulum warned that the bills could have devastating consequences for the Northern region and other parts of the country.

    He disclosed this during an interview with, while attending the Africa Investment Forum, Market Days 2024, in Rabat, Morocco.

    In an interview with the News Agency of Nigeria (NAN) on the sidelines of the Africa Investment Forum Market Days 2024 in Morocco on Wednesday, Sanwo-Olu said the reforms would require everyone to work harder to realise their full benefits.

    Sanwo-Olu acknowledged that while Lagos State may experience some losses, it also stands to gain a greater opportunity to play a more substantial role.

    Read Also: Peter Obi backs Tinubu’s tax reforms, says ‘they are overdue’ 

    He underscored the importance of reforms, despite facing opposition from some groups.

    “What those uncomfortable with the tax reform are not willing to accept is that there is no way of making an omelette without breaking the egg.

    “You cannot make changes if the reforms are not set in. I have advised that people should take time to read the provisions of the reform very well and to fully understand what they’re trying to do.

    “I’ve seen comments around. Comments like Lagos is going to be the major beneficiary. It is not true. Lagos is actually going to be shaped off in some places, but on a larger scale basis, we see it as a global thing for a better governance structure.

    “All of us will play better, and we’ll be able to discipline ourselves more. One of the things that you will see is that you need to work harder for you to get the full benefit of the reform. So it’s not just an easy kill,” he said.

    The governor added that if the changes were not made, greater opportunities were inherent in the states of the federation as well as non-governmental actors.

    “I have a positive attitude to it. I see it as a very wonderful reform.

    “The intention is to better a lot, but not just better a lot of one person or one set of people. It’s for all of us, and so we should look at it this way,” he said.

  • Tax Reform Bill Townhall: It’s time to grow Nigeria

    Tax Reform Bill Townhall: It’s time to grow Nigeria

    By Arabinrin Aderonke

    This is my take on the tax reform town hall that was broadcast live on Channels TV.  It couldn’t have come at a better time. This was more than just a panel discussion; it was a call to action, a chance to understand the changes that will affect every Nigerian.

    Tax reform in Nigeria is no longer just a topic of debate. It is a defining moment for the future of Nigerians, a time in the development of our tax system, which has often been criticized for being inefficient, unfair, and complicated.

    The new tax reform bills aim to change all of this by introducing ideas and rules. They seek to transform how Nigerians earn, work, and pay taxes.

    At the Stakeholder Session with Tax Consultants and Chief Financial Officers (CFOs), Mr. Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, led the conversation alongside other stakeholders, and provided clarity on what’s at stake. The takeaway couldn’t be clearer: these reforms are what Nigeria needs right now. They are here to grow the country.

    The new reforms are a vision that privileges the ordinary Nigerian over the elite, the entrepreneur over the bureaucrat. Small businesses, those the government has often failed to support, are finally being given a fighting chance. No longer burdened with corporate income tax if their annual turnover stays under N50 million, these businesses will now have the room to grow and contribute to the economy. This is not mere charity.

    It’s a realization that the future of Nigeria lies in the hands of those who are brave enough to start something from scratch. Tax exemptions from withholding tax, and simplified processes that forgo the need for audited financial statements, will keep more businesses in the formal sector, giving them the structure they need to thrive. This is growth. This is how we build the Nigeria we all dream of.

    But these reforms are about more than just business. They carry the promise of a better deal for the ordinary Nigerian, the ones who have been carrying the weight of an unfair tax system for far too long. The removal of taxes on food and the exemption of low-income earners from personal income tax shows a government that is finally listening.

    Nigerians spend so much just to get by, and the removal of these burdens is a gesture that goes right to the heart of our struggles. The system is finally recognizing the value of every citizen, regardless of their income level.

    The reforms also aim to tackle the problem of multiple taxes and levies that have historically strangled businesses. The introduction of a Tax Ombudsman promises to bring much-needed accountability to the system.

    This independent body will give businesses a place to turn when they feel aggrieved. Mr. Baba Yusuf, speaking from a regional perspective, noted that Northern Nigeria stands to gain the most from these reforms. The reforms aren’t just about levelling the playing field for the elites or the wealthy regions; they are about ensuring fairness and opportunity for all.

    The revamped tax dispute resolution process promises to resolve conflicts within 14 days, which could be good for businesses that have long been hampered by bureaucracy. As we all know, time is money. With quicker resolutions, businesses can focus on growth rather than navigating endless red tape.

    Dr. Paul Alaje, an economist, praised the reforms for their ambitious scope, describing the introduction of a Tax Ombudsman as a “beautiful initiative” to enhance transparency and accountability. He noted that while the reforms are a step in the right direction, there may be a need to consider a gradual increase in VAT to 15% in the medium term to align with global standards.

    Mr. Chibuzor Michael applauded the reforms for their potential to harmonize Nigeria’s tax landscape, emphasizing the importance of understanding their intricacies. He highlighted how the reforms center on both people and businesses, aiming to simplify compliance while reducing the tax burden on low-income earners and small businesses.

    However, no reform comes without its challenges. The new VAT-sharing formula is a point of contention, particularly for state governors concerned about how the new distribution model will affect their states. While these concerns are valid, it’s important to remember that these reforms are not intended to divide us.

    They are about creating a tax system that works for the country as a whole. The VAT adjustments may cause discomfort in the short term, but in the long run, the goal is to reduce the tax burden on all Nigerians and ensure a more sustainable, equitable system.

    As Hon. Yakubu Dogara said during the panel, it’s time to move beyond regional and sectional divides. We need to put on the cap of leadership, the cap that is focused on the collective good of the nation. The reforms challenge us to rethink what’s possible, to go beyond the old ways, and to embrace a new, more inclusive future. Leadership will be key to ensuring that these reforms succeed. It’s time for Nigeria to grow.

    The change from the Federal Inland Revenue Service (FIRS) to the Nigeria Revenue Service (NRS) is not just about a name change; it reflects a mission to improve the country’s tax system. This rebranding shows that the focus is no longer just on collecting taxes but on building a better system that works for everyone.

    Read Also: Gumi backs Tinubu’s Tax Reform Bills amid northern opposition 

    The NRS aims to make the tax process more transparent and accessible, encouraging more Nigerians to pay taxes fairly. It’s a sign of the government’s commitment to improving the economy by making sure everyone contributes to the country’s growth.

    The true strength of this reform lies not just in the details of the bill but in the culture, it is set to create, a culture of fairness, compliance, and transparency. We may not be perfect yet, but these reforms present undeniable opportunities.

    They challenge the status quo, ask difficult questions, and offer solutions that Nigeria desperately needs. The reforms are not just about taxes; they are about creating an environment in which businesses and people can thrive. They are about building a Nigeria where the economy is structured to benefit all.

    Now is the time to understand the reforms, to look past the headlines, and see how they’ll truly affect us. There are opportunities here, but they will only be realized if the reforms are implemented. This is the much-needed transformation, it’s time to grow Nigeria.

    – Arabinrin Aderonke Atoyebi is the technical assistant on broadcast media to the Executive Chairman of the Federal Inland Revenue Service

  • Northern Elders Forum reject tax reform bill

    Northern Elders Forum reject tax reform bill

    • Warns against socio-economic crisis

    From Gbenga Omokhunu, Abuja

    The Northern Elders’ Forum (NEF), yesterday reaffirmed its rejection of the Tax Reform Bill.

    NEF described it as a policy “conceived in bad faith” adding that it threatens national cohesion.

    The group criticised the manner of its implementation, alleging that key stakeholders, including members of the National Economic Council, were sidelined during the process.

    The Convener of NEF, Professor Ango AbdullahI, in a communiqué after the forum’s Board of Trustees’ second bi-annual meeting in Abuja, warned against policies that could further marginalise the North’s resource potential.

    The forum lauded the Northern States Governors’ Forum and the Northern Nigeria Council of Traditional Rulers for opposing the bill, dubbing their stance “patriotic” while urging Northern politicians in the National Assembly to speak out against it.

    He said: “The meeting seriously maintained that, in its present form, the Tax Reform Bill is conceived in bad faith, poorly packaged and it is a palpable threat to our unity and national cohesion.

    “The meeting proceeded by drawing attention to the brazen cavalier way and suspicious manner in which the Tax Reform Bill was imposed on the nation, without allowing the in-puts of critical stakeholders, even as it kept members of the National Economic Council in the dark, thus; confirming the sinister intentions of those promoting this outrageous Bill.

    “The Board-in-session, condemned in very strong terms, the conspicuous loss of voice on this burning issue by the overwhelming number of elected politicians in the National Assembly from the region, and fiercely warned, that indeed, the days are fast gone, when such conspiratorial connivance against the vital and strategic interest of the region, either by those within or outside the region, would be condoned or even tolerated.

    “In consideration of the deteriorating situation in the education sector in the country in general and the North in particular, the Board-in-Session was alarmed by the high percentage, now about (60%) of students in Northern Nigeria, who involuntarily were not able to return to their institutions of higher learning, universities, polytechnics, colleges of education and legal studies, due to high costs of tuition fees and unaffordable daily transportation to and from schools.

    “The Meeting went on to discuss the explosive crisis of out of school children now estimated to be 20 million in the whole country, of which over 80% comes from the North. Against this troubling reality, the Board-in-session expressed serious doubt, on the viability and efficacy of the much touted Federal Students Loan Scheme as a panacea to this malignant malady.

    “The Board-in-session, unanimously frowned at the surreptitious move being masterminded by the Ministry of Mines and Solid Minerals to sponsor dubious mining policies in collusion with certain political actors, with the sole aim of stifling the investment opportunities of the huge mineral resource potentials linked to the vast Northern region.

    Read Also: Tax Reform Bill: VAT as a consumption tax

    “The Meeting spiritedly decried the prevalence of condescending attitude being exhibited by some powerful political actors in the region, who more often than not, behave arrogantly and disdainfully like rulers rather than leaders fully committed to the plight of their people.

    “The Board-in-session, urgently called on the people of the North to stay resolute and remain vigilant in defence of their inalienable rights, particularly their voting rights and to desist from allowing themselves to be deceived yet again, through subterfuge, use of ill-gotten wealth and religious manipulation, by some unscrupulous elements, whose past records did not portray them to be persons of integrity, character and probity.”

    The NEF urged northerners to remain vigilant in defending their rights, particularly during elections, and warned against falling victim to manipulation by unscrupulous leaders with questionable records.

    The group emphasised the importance of safeguarding unity and resisting attempts to divide the region.

  • JUST IN: Northern elders affirm rejection of tax reform bill

    JUST IN: Northern elders affirm rejection of tax reform bill

    The Northern Elders’ Forum (NEF), on Saturday, November 23, reaffirmed its rejection of the Tax Reform Bill.

    NEF described it as a policy “conceived in bad faith”, adding that it threatens national cohesion.

    The group criticised the manner of its implementation, alleging that key stakeholders, including members of the National Economic Council (NEC), were sidelined during the process.

    The convener of NEF, Professor Ango Abdullahi, in a communique after the forum Board of Trustees’ second bi-annual meeting, in Abuja, warned against policies that could further marginalise the north’s resource potential.

    The forum lauded the Northern States Governors’ Forum and the Northern Nigeria Council of Traditional Rulers for opposing the bill, dubbing their stance “patriotic” while urging Northern politicians in the National Assembly to speak out against it.

    He said: “The meeting seriously maintained that, in its present form, the Tax Reform Bill is conceived in bad faith, poorly packaged and it is a palpable threat to our unity and national cohesion.

    “The Board-in-session, condemned in very strong terms, the conspicuous loss of voice on this burning issue by the overwhelming number of elected politicians in the National Assembly from the region, and fiercely warned, that indeed, the days are fast gone, when such conspiratorial connivance against the vital and strategic interest of the region, either by those within or outside the region, would be condoned or even tolerated

    “In consideration of the deteriorating situation in the education sector in the country in general and the North in particular, the Board-in-Session was alarmed by the high percentage, now about (60%) of students in Northern Nigeria, who involuntarily were not able to return to their institutions of higher learning, universities, polytechnics, colleges of education and legal studies, due to high costs of tuition fees and unaffordable daily transportation to and from schools.

    “The Meeting went on to discuss the explosive crisis of out-of-school children now estimated to be 20 million in the whole country, of which over 80% comes from the North. Against this troubling reality, the Board-in-session expressed serious doubt, on the viability and efficacy of the much-touted Federal Students Loan Scheme as a panacea to this malignant malady.

    Read Also: Tax Reform Bill: VAT as a consumption tax

     “The meeting spiritedly decried the prevalence of condescending attitudes being exhibited by some powerful political actors in the region, who more often than not, behave arrogantly and disdainfully like rulers rather than leaders fully committed to the plight of their people.

    “The Board-in-session urgently called on the people of the North to stay resolute and remain vigilant in defence of their inalienable rights, particularly their voting rights and to desist from allowing themselves to be deceived yet again, through subterfuge, use of ill-gotten wealth and religious manipulation, by some unscrupulous elements, whose past records did not portray them to be persons of integrity, character, and probity.

    The NEF urged Northerners to remain vigilant in defending their rights, particularly during elections, and warned against falling victim to manipulation by unscrupulous leaders with questionable records.

    The group emphasised the importance of safeguarding the unity and resisting attempts to divide the region.

  • How Tax Reform Bill will drive economic growth

    How Tax Reform Bill will drive economic growth

    • By Arabinrin Aderonke

    The Tax Reform Bill has become a point of discussion in Nigeria, generating enthusiasm and concern among various stakeholders, and the general public. This reform includes four legislative proposals: the Nigeria Tax Bill, which aims to eliminate multiple taxation; the Nigeria Tax Administration Bill (NTAB), designed to harmonize tax processes across all levels of government; the Nigeria Revenue Service (Establishment) Bill, which seeks to rename the Federal Inland Revenue Service to Nigeria Revenue Service; and the Joint Revenue Board Establishment Bill, proposing the creation of a Joint Revenue Board to streamline tax administration. Together, these bills are set to transform the nation’s tax sector, making it more efficient and aligned with global best practices.

    President Tinubu stands firmly behind this reform, recognising its potential to drive economic growth and enhance national development. In his recent statements, President Tinubu has expressed unwavering support for the Tax Reform Bill, urging northern governors to allow the legislative process to unfold without unnecessary interruptions.

    He emphasised that this is not merely a political exercise; rather, it is a step toward achieving economic prosperity for all Nigerians. The bill is not about favoring one region over another but is designed to create a fairer and more effective tax system that benefits the entire country.

    The Tax Reform Bill represents a move towards economic prosperity and national development. The focus should be on the transformative impact of these reforms, which aim to streamline tax administration and eliminate inefficiencies that have long hindered progress.

    The vision that President Tinubu holds for Nigeria’s economy is one of resilience and opportunity. He envisions an economy where businesses can thrive, investments flow freely, and citizens enjoy improved living standards. The Bill is a component of this vision, aimed at simplifying tax burdens and enhancing compliance, allowing the government to invest more in public services and infrastructure.

    For the citizens of Nigeria, the benefits of this reform are clear. By addressing the complexities of the current tax system, the bill promises to alleviate the burden on taxpayers, making it easier for people and businesses to meet their obligations. This, in turn, will lead to increased revenue for the government, enabling it to fund services that improve the quality of life for all Nigerians.

    Read Also: I can treat govt files while abroad – Gov Sule

    Nigerians should refrain from creating problems where none exist. President Tinubu acknowledges the valuable input from the NEC, as reflected in recent communications. It is important to understand that the bill is not designed to disadvantage the northern region. The derivation model for Value-Added Tax (VAT) is structured to allocate tax revenues based on consumption rather than the production location.

    For instance, while telecommunications companies may be headquartered in Lagos, the substantial consumer base is in Kano, which means that the northern region stands to gain more from VAT revenue due to its high level of consumption. The same principle applies to other sectors, such as confectioneries and soft drinks. Therefore, irrespective of where, whether North, South, East, or West has much to gain from the proposed VAT distribution model.

    As Nigeria moves forward with these reforms, it is necessary to remain focused on the bigger picture. There is a tremendous amount of work to be done, and the nation must avoid distractions that could derail its progress. President Tinubu is working closely together with the right team to ensure that the Tax Reform Bill catalyzes positive change and national development, paving the way for a prosperous future for all Nigerians.

    With open dialogue and a commitment to collaboration, Nigeria can move forward toward a brighter, more equitable future. The time for change is now, and together, we can illuminate the path to progress and prosperity for all Nigerians. Supporting this reform will improve the economy generally and simplify tax procedures, allowing all citizens to prosper in a system built on efficiency and fairness.

    •Arabinrin Atoyebi, an award-winning investigative journalist, is the Technical Assistant, Broadcast Media, to the Executive Chairman of the Federal Inland Revenue Service. She writes from Abuja.

  • How tax reform Bill will drive economic growth

    How tax reform Bill will drive economic growth

    By Arabinrin Aderonke 

    The Tax Reform Bill has become a point of discussion in Nigeria, generating enthusiasm and concern among various stakeholders, and the general public. This reform includes four legislative proposals: the Nigeria Tax Bill, which aims to eliminate multiple taxation; the Nigeria Tax Administration Bill (NTAB), designed to harmonize tax processes across all levels of government; the Nigeria Revenue Service (Establishment) Bill, which seeks to rename the Federal Inland Revenue Service to Nigeria Revenue Service; and the Joint Revenue Board Establishment Bill, proposing the creation of a Joint Revenue Board to streamline tax administration. Together, these bills are set to transform the nation’s tax sector, making it more efficient and aligned with global best practices.

    President Tinubu stands firmly behind this reform, recognizing its potential to drive economic growth and enhance national development. In his recent statements, President Tinubu has expressed unwavering support for the Tax Reform Bill, urging northern governors to allow the legislative process to unfold without unnecessary interruptions. He emphasizes that this is not merely a political exercise; rather, it is a step toward achieving economic prosperity for all Nigerians. The bill is not about favoring one region over another but is designed to create a fairer and more effective tax system that benefits the entire country.

    The Tax Reform Bill represents a move towards economic prosperity and national development. The focus should be on the transformative impact of these reforms, which aim to streamline tax administration and eliminate inefficiencies that have long hindered progress.

    Read Also: How to solve economic challenges, by MAN

    The vision that President Tinubu holds for Nigeria’s economy is one of resilience and opportunity. He envisions an economy where businesses can thrive, investments flow freely, and citizens enjoy improved living standards. The Bill is a component of this vision, aimed at simplifying tax burdens and enhancing compliance, allowing the government to invest more in public services and infrastructure.

    For the citizens of Nigeria, the benefits of this reform are clear. By addressing the complexities of the current tax system, the bill promises to alleviate the burden on taxpayers, making it easier for people and businesses to meet their obligations. This, in turn, will lead to increased revenue for the government, enabling it to fund services that improve the quality of life for all Nigerians.

    Nigerians should refrain from creating problems where none exist. President Tinubu acknowledges the valuable input from the NEC, as reflected in recent communications. It is important to understand that the bill is not designed to disadvantage the northern region. The derivation model for Value-Added Tax (VAT) is structured to allocate tax revenues based on consumption rather than the production location. 

    For instance, while telecommunications companies may be headquartered in Lagos, the substantial consumer base is in Kano, which means that the northern region stands to gain more from VAT revenue due to its high level of consumption. The same principle applies to other sectors, such as confectioneries and soft drinks. Therefore, irrespective of where, whether North, South, East, or West has much to gain from the proposed VAT distribution model.

    As Nigeria moves forward with these reforms, it is necessary to remain focused on the bigger picture. There is a tremendous amount of work to be done, and the nation must avoid distractions that could derail its progress. President Tinubu is working closely together with the right team to ensure that the Tax Reform Bill catalyzes positive change and national development, paving the way for a prosperous future for all Nigerians. 

    With open dialogue and a commitment to collaboration, Nigeria can move forward toward a brighter, more equitable future. The time for change is now, and together, we can illuminate the path to progress and prosperity for all Nigerians. Supporting this reform will improve the economy generally and simplify tax procedures, allowing all citizens to prosper in a system built on efficiency and fairness.

    Arabinrin Aderonke Atoyebi, an award-winning investigative journalist, is the Technical Assistant, Broadcast Media, to the Executive Chairman of the Federal Inland Revenue Service. She writes from Abuja.

  • Northern Forum backs Tinubu for rejecting NEC’s decision on tax reform bill

    Northern Forum backs Tinubu for rejecting NEC’s decision on tax reform bill

    The Progressive Northern Youth Forum (PNYF) has praised President Bola Ahmed Tinubu for rejecting the National Economic Council’s (NEC) recommendation to withdraw the tax reform bills.

    During the 144th meeting of the NEC led by Vice President Kashim Shettima, the council suggested the bills be withdrawn following a meeting of Governors from the 19 Northern States’ in Kaduna, where they, with prominent traditional leaders from the region, collectively decided to oppose the Nigeria Tax Reform Bill.

    But President Tinubu, through a statement by his media aide, Bayo Onanuga, urged the NEC to allow the process to run its full course.

    The PNYF, in a statement by its Secretary General, Abdulkadir Bala, expressed support for the President’s decision to disregard the stance of NEC members, particularly the Northern Governors’ Forum.

    Read Also: Concerns as silent rage of hazardous pollution threatens air quality

    Bala emphasised that the position taken by the Northern Governors’ Forum does not accurately represent the views of the people of the region regarding the tax reform bills.

    “The Progressive Northern Youth Forum (PNYF) commends President Bola Ahmed Tinubu for rejecting the National Economic Council’s (NEC) recommendation to withdraw the tax reform bills,” the statement said.

    “We also want to clarify that the North does not support the position of the Northern Governors’ Forum regarding the tax reform bills. The Forum’s call for the withdrawal of these bills does not represent the views of the people in the region.

    “The Governors have consistently demonstrated a lack of initiative to lead the North and instead rely on federal allocations, squandering the resources of the people. rather than proposing similar bills to enhance their states’ internally generated revenues, the governors are inexplicably opposing efforts to reduce dependence on the federal government.

    “If the Governors genuinely cared for their constituents, they would have taken advantage of the opportunity to provide input and propose changes during the legislative process, rather than calling for the withdrawal of the bills from the National Assembly.

    “What is the Northern Governors’ Forum afraid of? Clearly, they are afraid of taking responsibility. They want to continue being financially sustained by the Federal Government without making any efforts to develop their own revenue-generating initiatives. There is no evidence to show that the current Northern governors have effectively utilized all the allocations they have received from President Tinubu’s federal government.

    “The governors should stop opposing people-oriented bills brought forth by the federal government and focus on fulfilling their responsibilities to the public. Otherwise, the people may feel compelled to demand their impeachment or resignation.

    “Once again, we commend President Tinubu for remaining steadfast in his support of the tax reform bills, despite attempts by some self-serving individuals to dissuade him.

    “The North fully supports the tax reform bills, as they aim to streamline Nigeria’s tax administration processes, completely overhaul the nation’s tax operations, and align them with global best practices.”

  • UPDATED: NEC recommends withdrawal of tax reforms Bill from NASS

    UPDATED: NEC recommends withdrawal of tax reforms Bill from NASS

    The National Economic Council (NEC) has recommended the withdrawal of the Tax Reforms Bill from the National Assembly to President Bola Tinubu to allow for wider consultations. 

    Disclosing this to journalists at the end of the 145th NEC meeting at the State House, Abuja, the Oyo Governor Seyi Makinde said this formed part of resolutions reached at the meeting. 

    Makinde said Council members agreed that it was necessary to allow for consensus building and understanding of the bill among Nigerians. 

    Makinde added that this decision for the benefit of the country and emphasised the need for further consultations regarding the bill.

    “NEC today took a presentation from the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms. Their main focus is fair taxation, responsible borrowing and sustainable spending. 

    “The Council acknowledged that the country is underperforming on all indices as regards yields from major revenue sources, also tax to GDP ratio and so on. 

    “So after extensive deliberation, NEC noted the need for sufficient alignment between and amongst the stakeholders for the proposed reforms. 

    “So Council therefore recommend the need to withdraw the bill currently before the National Assembly on tax reforms, so that we can have wider consultations and also build consensus around these reforms, for the benefit of the entire country, and also to give people, for them to know the vision and where we are moving the country in terms of a tax reform, because there’s really a lot of miscommunication, misinformation. 

    Read Also: Lagos State Civil Service Commission hosts summit to foster standardisation, synergy for unified public service

    “So, the bill will be withdrawn from the National Assembly and then there will be consultations afterwards,” he said.

    NEC’s decision is coming days after the Northern Governors kicked against the reform bill and counter explanation by the presidency it was not against the region.

    At a meeting on October 28, 2024, Northern Governors’ Forum, rejected the new derivation-based model for Value-Added Tax distribution in the new tax reform bills before the National Assembly.

    The Council also approved  “Solutions for Internally Displaced and Host Communities” programme, presented by Hajara Ahmed, project coordinator for a World Bank-supported initiative.

    The Minister of Budget and Economic Planning, Atiku Bagudu, who also briefed corresponds after the meeting, said the initiative aims to address the long-term needs of internally displaced persons (IDPs) in Nigeria by improving access to basic services and economic opportunities.

    The programme, he added, emphasised investment in resilient infrastructure and support for host communities, recognizing that both groups require assistance to foster sustainable livelihoods. 

    States are expected to appoint focal persons to facilitate communication with the Federal Ministry of Budget and Economic Planning, which will oversee project implementation alongside the National North East Development Commission.

    He said the first major goal of the programme is investment in resilient infrastructure.