President Bola Tinubu has instructed the Ministry of Justice to collaborate closely with the National Assembly to address public concerns over a set of contentious tax reform bills that have sparked heated debate nationwide. While the President, currently in South Africa, has reaffirmed his administration’s commitment to fiscal accountability, the measures have drawn sharp criticism from political leaders, civil society groups, and ordinary citizens alike.
The bills, collectively comprising the Nigeria Tax Bill 2024, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill, aim to overhaul the nation’s tax structure. However, opposition has been particularly fierce in Nigeria’s northern states, where governors and lawmakers argue the proposals risk upsetting fiscal federalism by centralising tax authority and reducing state revenues.
In a statement issued Tuesday, Minister of Information Mohammed Idris clarified Tinubu’s stance. “President Tinubu has directed the Ministry of Justice and relevant officials to work with the National Assembly to address all genuine concerns before the bills are passed,” the statement read, underscoring the administration’s openness to constructive input.
Yet the President rejected calls from the Northern Governors’ Forum and the National Economic Council to withdraw the bills entirely. Critics contend the reforms, particularly those revising the value-added tax (VAT) sharing model, disproportionately favour wealthier southern states such as Lagos and Rivers at the expense of less affluent regions.
Governor Babagana Zulum of Borno State cautioned that the reforms could yield dire consequences for millions of Nigerians, warning that the VAT model, in particular, threatens to deepen regional disparities.
While protests erupted at the National Assembly, with northern youth groups rallying in favour of the Deputy Senate President, Senator Barau Jibrin, others lambasted the bills as a betrayal of regional equity. Tijani Mohammed, a spokesperson for the pro-reform demonstrators, defended the measures, describing them as a vital step towards national progress. “This bill is overdue,” he declared, dismissing detractors as “enemies of Nigeria’s development.”
However, the Senate’s decision to pass the bills for a second reading provoked uproar among some lawmakers. In the House of Representatives, attempts by Ekiti State legislator Akin Rotimi Jr. to endorse the bills sparked a rowdy session, underscoring deep divisions within the legislative chambers.
Outside the corridors of power, critics such as the Arewa Dignity Advancement Initiative denounced the reforms as rushed and exclusionary. The group, representing a coalition of northern professionals and academics, called on the National Assembly to reject the bills, citing their potential to exacerbate economic hardship.
Not all reactions have been negative. Islamic scholar Sheikh Ahmad Gumi lent his support to the reforms, calling them a step towards economic stability but urged caution over the VAT-sharing formula. Similarly, the Catholic Bishop of Sokoto, Hassan Kukah, expressed cautious optimism, describing the reforms as an opportunity to end the “financial recklessness” of Nigeria’s elite and pave the way for sustainable growth.
The Ekiti State caucus in the National Assembly also backed the bills, arguing that they would enhance revenue generation, foster entrepreneurship, and create jobs. “These reforms underscore our collective commitment to a better future,” the caucus said in a joint statement.
As debates rage, President Tinubu’s reforms highlight the tension between the nation’s need for modernised fiscal policies and the enduring complexities of regional disparities. With public hearings, political maneuvering, and grassroots protests set to intensify, the ultimate fate of the tax bills could reshape Nigeria’s economic and political landscape for decades to come.
While the Presidency remains resolute, the question lingers: can these reforms balance national interests with the sensitivities of a diverse federation? For now, the nation watches as the drama unfolds in its legislative chambers and streets.
