The National Economic Council (NEC) has recommended that President Bola Tinubu immediately withdraw the Tax Reforms Bill from the National Assembly to allow for broader consultations and consensus building among Nigerians. This decision was disclosed by Oyo State Governor Seyi Makinde during a briefing with State House correspondents after the 144th NEC meeting, chaired by Vice President Kashim Shettima at the Presidential Villa in Abuja.
Governor Makinde emphasized the need for sufficient alignment on the proposed reforms, stating, “NEC noted the need for sufficient alignment on the proposed reforms and recommended the withdrawal of the tax reform bill.” He highlighted that this decision is intended for the benefit of the entire country and underscored the importance of further discussions regarding the bill.
This recommendation comes in light of recent endorsements by President Tinubu and the Federal Executive Council for new policy initiatives aimed at streamlining Nigeria’s tax administration processes. The Federal Government has indicated that the new laws are designed to enhance efficiency and eliminate redundancies in the nation’s tax operations. These reforms have been developed following a review of existing tax laws since August 2023, with the National Assembly currently considering four executive bills related to these tax reform efforts.
The NEC’s recommendation follows the rejection of the reform bill by the Northern Governors, who convened on October 28, 2024, under the Northern Governors’ Forum. They expressed concerns over the new derivation-based model for Value-Added Tax distribution outlined in the tax reform bills, asserting that the proposal undermines the interests of the North and other sub-national entities. Governor Muhammed Yahaya of Gombe State, the chairman of the forum, reiterated this position in their communiqué.
