Presidency Orders Ministry of Justice To Collaborate With NASS On Tax Reform Bills

Presidency Responds to Concerns Over Tinubu’s Tax Reform Bills

Following heated debates across Nigeria, President Bola Tinubu has instructed the Federal Ministry of Justice to work closely with the National Assembly on tax reform bills. The President’s directive comes as protests and disagreements arise over the proposed changes, which some fear could disrupt fiscal federalism and favour certain regions over others.

In a statement released by the Minister of Information, Mohammed Idris, Tinubu emphasised the importance of addressing all genuine concerns before the bills are passed into law. He noted that the government welcomes input from stakeholders to refine the bills and ensure equitable outcomes.

“The Federal Government acknowledges the concerns raised by Nigerians,” the statement read. “President Tinubu has directed the Ministry of Justice and relevant officials to engage with the National Assembly to address all valid issues raised.”

Key Issues Surrounding Tinubu’s Tax Reforms

The tax reform bills—covering the Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and others—have sparked controversy. Critics argue that the proposed reforms might centralise tax authority, reducing state revenue and undermining financial autonomy.

During a recent meeting of the Northern Governors’ Forum, the governors unanimously rejected the derivation-based model for Value-Added Tax (VAT) distribution outlined in the reforms. They claimed the model could disproportionately benefit wealthier states like Lagos and Rivers while disadvantaging others.

Governor Babagana Zulum of Borno State stated, “The proposed VAT-sharing formula does not favor the northern states. This could lead to severe economic challenges in our region.”

Despite these concerns, the Senate passed the bills for a second reading, drawing sharp criticism from various quarters. The National Economic Council, comprising all 36 state governors, had earlier advised Tinubu to withdraw the bills for further consultations.

However, the Presidency countered this suggestion, stating, “The reforms will not impoverish any region but will instead ensure equitable revenue distribution.”

Protesters Rally in Support of Tinubu’s Tax

On Tuesday, northern youths demonstrated outside the National Assembly to show support for the tax reform bills. Holding placards with messages like “Support Progress, Pass the Tax Bills,” the protesters defended the reforms as vital for Nigeria’s development.

READ ALSO: Dogara Highlights Why Northerners Should Embrace Tinubu’s Tax Reforms

Speaking on behalf of the group, Tijani Mohammed said, “The tax reform bills are long overdue. We need progress, not stagnation. These reforms will ensure that states get a larger share of revenues, benefiting everyone.”

Mohammed criticized those opposing the bills, calling them “enemies of progress.” He urged the National Assembly to expedite the passage of the reforms.

Mixed Reactions From Key Stakeholders

The tax reform debate has polarised opinions among political and religious leaders. Prominent Islamic scholar Sheikh Ahmad Gumi expressed his support for the reforms, describing them as a step toward economic improvement.

“I believe the VAT issue needs review, but overall, the reforms are a good package for Nigeria,” Gumi said.

Similarly, Bishop Hassan Kukah of the Sokoto Diocese praised the initiative, saying it could end financial recklessness and improve fiscal management. “Reforms like this are essential for Nigeria to thrive,” Kukah stated during an interview.

Conversely, some lawmakers voiced strong opposition during a plenary session in the House of Representatives. Ekiti North lawmaker Akin Rotimi sparked a heated debate when he declared his caucus’s support for the reforms. His statement was met with chants of disapproval, forcing the Speaker to intervene.

Presidency Stands Firm

Despite the controversy, the Presidency remains resolute in its commitment to the tax reforms. The Minister of Information clarified, “This is the essence of democracy—robust debate and constructive engagement. We are confident the reforms will lead to a stronger, more equitable economy.”

As consultations continue, Nigerians await the final outcome of Tinubu’s Tax reform bills, which could reshape the country’s fiscal framework. Whether the reforms will bridge regional divides or deepen existing tensions remains to be seen.

Tinubu’s Tax reforms have ignited a national conversation, highlighting the complexities of balancing equity and efficiency in revenue sharing. While the Presidency pushes forward with its vision, the heated debates underscore the need for transparency and collaboration to achieve lasting solutions.