Abuja, Nigeria:
In a significant move, the National Economic Council (NEC) has recommended that President Bola Tinubu withdraw the proposed Tax Reform Bills from the National Assembly. This decision, influenced by concerns from various stakeholders, especially in northern Nigeria, aims to foster deeper consultation and national consensus around the proposed reforms.
The NEC’s 144th meeting, chaired by Vice President Kashim Shettima, highlighted the need for understanding the impact of these reforms on different regions and the importance of transparency.
Oyo State Governor Seyi Makinde, speaking to State House correspondents, emphasized the Council’s support for a more comprehensive review of the bills. He noted that this approach would allow broader engagement with Nigerians to clarify the intentions behind the tax reforms.
The Presidency reiterated that the reforms are intended to streamline tax processes and ensure equitable benefit across the federation, not target any specific region. The proposed changes, including a fairer derivation model for Value-Added Tax (VAT) distribution, have recently faced pushback from northern governors and leaders who voiced concerns over the impact on northern states.
In addition to tax reform discussions, NEC called for the inclusion of the South East and South-South regions in dam construction projects, aiming to mitigate flooding impacts across the country. This recommendation follows presentations from the Ministry of Water Resources, which identified flood-prone areas and the need for infrastructure to manage water flow effectively.
With these ongoing consultations, NEC hopes to create alignment and clarity around tax reform and infrastructure development, working towards a cohesive strategy that benefits all Nigerians.
