The Traffic

Tinubu Defies 36 Governors, Insists on Pushing Ahead with Tax Reform Bill

By Achimi Muktari

In a bold move, President Bola Tinubu has refused to withdraw the controversial tax reform bills currently before the National Assembly, despite strong opposition from the National Economic Council (NEC) and the governors of all 36 states. Tinubu’s firm stance comes on the heels of NEC’s recommendation that the bill be pulled for further consultation, following concerns raised by various sections of the country.

On Friday, the Special Adviser to the President on Information and Strategy, Bayo Onanuga, made Tinubu's position clear through a statement titled, “Proposed tax reform bills should go through the legislative process; inputs can be made at public hearings.” Tinubu acknowledged the NEC’s concerns but asserted that the legislative process should not be halted, leaving room for inputs and modifications as the National Assembly reviews the bills.

“President Tinubu commends the National Economic Council, especially Vice President Kashim Shettima and the 36 State Governors, for their advice. However, he believes that the ongoing legislative process provides an opportunity for amendments without withdrawing the bills,” Onanuga’s statement read. The President welcomed further consultations but maintained that the bills should continue their path through the National Assembly, allowing public hearings to address any reservations.

This defiance came just 24 hours after Oyo State Governor, Seyi Makinde, announced NEC’s position, following its 144th meeting in Abuja. NEC had advised withdrawing the tax reform bills to allow for broader consensus building, especially in response to discomfort expressed by several regions over specific provisions in the proposed reforms.

During the meeting, NEC members, chaired by Vice President Kashim Shettima, expressed their desire for additional consultations to ensure the reforms benefit all sections of the country, rather than imposing new financial strains or undermining certain interests.

The Tax Reform Bill: What’s at Stake

President Tinubu’s tax reform initiative, spearheaded by a committee chaired by tax expert Taiwo Oyedele, has been in development for over a year. It seeks to streamline Nigeria’s complicated tax processes, reduce the burden of multiple taxation, and improve revenue generation efficiency across federal, state, and local levels. The comprehensive reform package was submitted to the National Assembly in the form of four key bills.

Among these is the Nigeria Tax Bill, which aims to simplify tax obligations for businesses and individuals, while eliminating redundancies in the tax collection system. Another is the Nigeria Tax Administration Bill, proposing a more unified administrative structure to replace the fragmented tax systems currently in place across the country's multiple tiers of government.

Perhaps most significantly, the Nigeria Revenue Service Bill suggests