Why Nigerian Governors Called For Clarifications On Tax Reform Bills

Nasarawa State Governor, Abdullahi Sule, has clarified that Nigerian governors are not opposing the proposed Tax Reform Bills. Instead, they sought further understanding and adjustments to ensure the reforms align with public interests and economic realities.

Speaking at a Channels Television Townhall on the Tax Reform Bills, Governor Sule commended the initiative but pointed out specific areas requiring more explanation.

He highlighted concerns like the proposed Value Added Tax (VAT) increase from 20% to 60% at the generation stage. However, Sule expressed satisfaction with the clarification that the VAT would now also include the consumption stage.

“These are the types of issues governors wanted clarity on,” Sule stated. “The governors suggested withdrawing the bills temporarily to facilitate discussions and reach a mutual understanding.”

He criticized the timing, saying the Townhall meeting should have taken place earlier, before the bills were submitted to the National Assembly. According to him, better communication from the Tax Reform Committee, led by Taiwo Oyedele, could have prevented the current resistance.

Oyedele, in response, acknowledged the governors’ feedback and explained that while more engagements would have been ideal, the urgency to propose the bills necessitated moving forward. He emphasized that the committee remains open to further discussions to clarify concerns.

The Tax Reform Bills, which aim to harmonize and streamline revenue administration across Nigeria, have faced significant resistance, particularly from the Northern region. Critics argue that inadequate consultations contributed to the controversy.

Despite these challenges, the National Assembly has moved forward, with the Senate passing the bills for a second reading. President Bola Tinubu has also insisted on following due legislative processes, despite calls from the National Economic Council for a temporary withdrawal to allow for broader consultations.

As public interest in the bills grows, the Tax Reform Committee has pledged to engage more stakeholders to ensure transparency and inclusiveness in the process.