President Tinubu declines recommendations from the Shettima-led National Economic Council (NEC), emphasizing the urgent need for tax reform legislation to drive economic change.
President Bola Tinubu has rejected the National Economic Council’s recommendation to withdraw a series of tax reform bills presently undergoing legislative review, asserting that the legislative process should continue.
The proposal to withdraw was put forward during the 144th NEC meeting, which was chaired by Vice President Kashim Shettima.
Earlier this week, governors from 19 northern states and traditional leaders convened in Kaduna. They issued a joint communiqué expressing their disapproval of the Nigeria Tax Reform Bill, specifically criticizing its proposed changes to how Value Added Tax (VAT) revenue is distributed.
In a recent announcement, Bayo Onanuga, the media aide to President Tinubu, stated that the president has encouraged NEC to allow the bills to proceed through the legislative process. He highlighted that there is plenty of opportunity for changes along this pathway.
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According to the statement, “President Bola Tinubu has been advised by the National Economic Council to withdraw the tax reform bills sent to the National Assembly for further consultation.” The statement added that President Tinubu appreciates Vice President Kashim Shettima and all 36 State Governors on the council for their guidance. He believes that since legislative proceedings have commenced, there is room for suggestions and essential modifications without retracting the bills from Parliament.
He urged NEC to engage in meaningful discussions with stakeholders to tackle any concerns during the parliamentary review of the bills. Tinubu highlighted that these reforms were meticulously developed by the Presidential Committee on Tax and Fiscal Policy Reform, which he set up in August 2023, aiming to boost economic productivity and enhance business and investment conditions.
“The Committee dedicated over a year to its efforts, gathering input from diverse societal segments across the geopolitical zones. This included contributions from trade associations, professional bodies, various Ministries and Government Agencies, Governors, traders, students, business owners as well as the organized private sector,” Tinubu remarked. “The resulting tax reform bills were carefully distilled from the comprehensive work conducted by the Presidential Committee.”
The proposed legislation, featuring the Nigeria Tax Bill 2024 and the Tax Administration Bill, seeks to update the country’s tax system and bring it in line with international norms.
