Governors Divided Over Tax Reform Bills: A Heated Debate In Abuja

The ongoing debate over President Bola Tinubu’s proposed Tax Reform Bills has created a rift among Nigeria’s 36 state governors under the Nigeria Governors’ Forum (NGF). These bills, submitted to the Senate and House of Representatives, aim to overhaul the country’s taxation framework but have sparked significant controversy and criticism from various quarters.

Key Developments

Opposition from Northern Governors
The 19 Northern governors have strongly opposed sections of the Tax Reform Bills, advocating for their withdrawal from the National Assembly. They argue that further consultations are necessary to address contentious provisions.
NEC’s Disapproval
The National Economic Council (NEC), chaired by Vice President Kashim Shettima and comprising all governors and select federal ministers, had earlier rejected the bills, signaling widespread discontent among stakeholders.
A Fractured Meeting
On Wednesday night, the NGF convened for a brief meeting that lasted only an hour. The session ended without a communique, and no governor addressed the press, a rare departure from protocol. Attendees reportedly left the meeting with visible tension, hinting at unresolved disagreements.
Attendance and Regional Divides
- The meeting saw participation from 15 governors, predominantly from the All Progressives Congress (APC). Governors Alex Otti (Abia State), Chukwuma Soludo (Anambra State), and Caleb Mutfwang (Plateau State) also attended.
- The governors aligned themselves along regional and party lines, reflecting deep-seated divisions over the bills.

President Tinubu’s Tax Reform Bills

President Tinubu submitted four tax reform bills on October 3, 2024, following recommendations by the Presidential Committee on Fiscal and Tax Reforms, led by Taiwo Oyedele. These include:

Nigeria Tax Bill 2024
- Aims to streamline the fiscal framework for taxation in Nigeria.
Tax Administration Bill
- Proposes a unified legal structure to minimize tax disputes.
Nigeria Revenue Service Establishment Bill
- Seeks to replace the Federal Inland Revenue Service with the Nigeria Revenue Service.
Joint Revenue Board Establishment Bill
- Plans to establish a tax tribunal and tax ombudsman for improved oversight and resolution.

Arewa Consultative Forum’s Role
The Arewa Consultative Forum (ACF) has formed a committee to evaluate the bills and provide recommendations to the Federal Government. Spokesperson Tukur Muhammad-Baba emphasized the need for broader consultations, urging stakeholders to collaborate with the Senate’s review committee.

Conclusion
The proposed Tax Reform Bills have exposed deep divisions among Nigeria’s governors, with regional and political interests complicating consensus. As debates intensify, stakeholders must prioritize dialogue and compromise to ensure the reforms benefit the nation’s fiscal landscape.