On Friday, President Bola Tinubu said that the National Economic Council’s recommendation to remove the tax reforms bill from the National Assembly would not be necessary.

He maintained that modifications and additions could be made without removing the measure from the NASS while the legislative process proceeded.

In a statement headed “Proposed tax reforms bills should go through the legislative process; inputs can be made at public hearings,” Mr. Bayo Onanuga, Tinubu’s Special Adviser on Information and Strategy, made the President’s stance known.

“The National Economic Council has recommended to President Bola Tinubu that the tax reform bills that have already been sent to the National Assembly be withdrawn for additional consultation,” the statement stated.

The National Economic Council members, particularly Vice President Kashim Shettima and the 36 State Governors, are commended by President Tinubu for their counsel. He feels that without removing the proposals from the National Assembly, the already-started legislative process offers a chance for input and any required modifications.

“President Tinubu welcomed additional consultations and engagement with key stakeholders to address any reservations about the bills while the National Assembly considers them for passage, but he urged the NEC to allow the process to take its full course.”

Just 24 hours after the National Economic Council, Nigeria’s top economic advisory body, asked that the tax changes bill be removed from the NASS for more deliberations, Tinubu responded on Friday.

Following the council’s 144th meeting, which was presided over by Vice President Kashim Shettima at the State House in Abuja, Oyo State Governor Seyi Makinde made the announcement Thursday.

According to Makinde, council members concurred that the law should be removed since certain parts of the nation find it offensive. According to him, this would facilitate understanding and the development of consensus.

He declared, “The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms gave a presentation to NEC today.

Following much discussion, NEC concluded that the suggested improvements require enough agreement amongst and among the stakeholders.

Therefore, the Council suggests that the tax reform measure that is presently before the National Assembly be withdrawn in order to facilitate more extensive discussions and foster national agreement on these reforms.

A measure recently proposed by President Bola Tinubu and the Federal Executive Council aims to create a unified revenue service, simplify financial duties for residents and companies, and reorganise and expedite tax operations.

The changes resulted from a months-long examination of current tax legislation by the committee chaired by Taiwo Oyedele, which was established in August 2023. Four executive bills were created based on the committee’s recommendations.

These include the Nigeria Tax Bill, which seeks to streamline tax requirements for people and businesses across the country in order to reduce inadvertent double taxation and increase the competitiveness of Nigeria’s economy.

Second, new regulations controlling the administration of all taxes in the nation are proposed under the Nigeria Tax Administration Bill. Its goal is to simplify taxpayer compliance nationwide by harmonising tax administrative procedures across federal, state, and local governments.

In order to better represent the Federal Inland Revenue Service’s role as the revenue agency for the entire nation, not only the Federal Government, the Nigeria Revenue Service (Establishment) Bill aims to rename the Federal Inland Revenue Service as the Nigeria Revenue Service.

Fourth, the Joint Revenue Board Establishment Bill suggests replacing the Joint Tax Board with a Joint Revenue Board that would oversee all state and federal tax authorities.

The fourth bill also proposes creating the Joint Revenue Board’s Office of Tax Ombudsman, which would act as a forum for taxpayer complaints.

Days after the governors of 19 northern states—who are also council members—rejected the new derivation-based model for the allocation of value-added tax, NEC took its stance.

The Northern Governors’ Forum, which is made up of the governors of the 19 Northern States, stated during its meeting on October 28 that the proposal disregards the interests of the North and other sub-nationals.

The meeting also denounced the region’s looming economic instability and substantial employment losses.

In contrast to concerns about job losses and perceived marginalisation, the Presidency stated in an explanation released early Thursday that the tax reform proposals will benefit all states and harmonise the nation’s tax rules for increased efficiency.

The Presidency criticised the Governors’ need for more consultations in its response on Friday, claiming that the tax reforms committee, under by Taiwo Oyedele, had already conducted extensive consultations over the previous 14 months.

According to Onanuga, the main goal of the laws is to efficiently coordinate federal, state, and local tax agencies in order to do rid of the overlapping duties, misunderstandings, and inefficiencies that have hampered Nigerian tax administration for many years.

Company income tax, personal income tax, capital gains tax, petroleum profits tax, tertiary education tax, value-added tax, and other taxing measures have different legislative frameworks and are managed independently under current legislation.

To lessen administrative fragmentation, the statement stated that “the proposed reforms seek to consolidate these multiple taxes, integrating CIT, PIT, CGT, VAT, PPT, and excise duties into a unified structure.”