President Tinubu Directs Ministry of Justice, NASS to Address Concerns Raised on Tax Reforms

President Bola Tinubu has directed the Ministry of Justice to work closely with the National Assembly to address the concerns raised by Nigerians.

Following the controversy trailing the Tax Reforms Bill, President handed down the review order on Tuesday as some northern youths stormed the National Assembly in support of the bills.

The bills – the Nigeria Tax Bill 2024, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill – have generated hot debates and contention across the country with northern governors and lawmakers opposed to their passage.

Critics argue that the reforms could disrupt the balance of fiscal federalism, potentially centralising tax authority and diminishing state revenues.

However, in a move to assuage the high emotion over the reform bills, Tinubu directed the Federal Ministry of Justice and relevant officials who worked on the draft to collaborate with the National Assembly to address all genuine concerns before the bills were passed.

This was contained in a statement signed by the Minister of Information and National Orientation, Mohammed Idris, titled, ‘President Tinubu committed to accountability on tax bills, directs Ministry of Justice to work with NASS on concerns.’

The minister said, “In line with the established legislative procedure, the Federal General welcomes meaningful inputs that can address whatever grey areas there may be in the bill.

“In this vein, President Tinubu has already directed the Federal Ministry of Justice and relevant officials who worked on the drafts to work closely with the National Assembly to ensure that all genuine concerns have been addressed before the bills are passed.”

Notably, at a meeting on October 28, governors of the 19 Northern States, under the platform of the Northern Governors’ Forum, rejected the new derivation-based model for Value-Added Tax distribution in the tax reform bills.

They argued that the changes might adversely affect their regions’ financial autonomy.

Three days later, the National Economic Council, comprising all 36 state governors, asked the President to withdraw the Tax Reforms Bill from the National Assembly for comprehensive consultations.

However, the President said there would be no need to withdraw the bill from the National Assembly.

Governor Babagana Zulum of Borno State warned that while the President could deploy his executive powers to pass the tax bills, there would be consequences for millions of Nigerians.

Zulum added that the proposed VAT-sharing model will only benefit Lagos and Rivers states.

But Governor of Nasarawa State, Abdullahi Sule, former Speaker of the House of Representatives, Yakubu Dogara, and many other northern leaders endorsed the bills.

Nonetheless, the Senate passed the bills for a second reading, a move that has been met with harsh criticisms.

In its statement on Monday, the Presidency said most reactions from political leaders and commentators “are not grounded in facts, reality, or sufficient knowledge of the bills.”

It said the tax bills will not enrich Lagos or Rivers at the expense of northern states.

Corroborating the Presidency’s stance, the information minister said, “The fiscal reforms will not impoverish any state or region of the country, neither will they lead to the scrapping or weakening of any federal agencies.”

The Federal Government welcomed the nationwide debate on the bills saying, “This is the very essence and meaning of democracy.”