President Bola Tinubu has begun sending ambassadors to the northern elite in reaction to growing opposition to facilitating the approval of the tax reform bills.
Presidency sources claimed that Tinubu was seeking support for the proposals from the political elite as well.
“What I know is that he (President Tinubu) has been consulting with some of the northern elite at an individual level and as groups, even before the holidays,” said an official seeking to remain anonymous due to his lack of authorisation to speak to the media about the issue.
Another reliable source claimed that the president was attempting to appease those opposed to the measures by using “back channels” and other strategies.
According to the source, “he is utilising all of the channels at his disposal to ensure that the bill’s ambiguities are resolved.”
Nonetheless, the governors of the north have stated that nothing will cause them to reconsider the bills.
Demanding that the legislation be removed from the National Assembly for additional consultation, they stated that they were still unconvinced by Tinubu’s overtures.
The National Assembly was presented with the tax reform bills by the executive in October 2024.
Nigeria Tax Bill 2024, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and Joint Revenue Board (Establishment) Bill are among them.
The Northern Governors Forum promptly rejected the bill after they were introduced, claiming that the region would be seriously disadvantaged by the suggested scheme for value-added tax distribution.
“The forum notes with dismay the contents of the recent Tax Reform Bills forwarded to the National Assembly,” the group said in a communiqué issued on October 21, expressing profound worry. “For the north and other sub-nations, the reforms are harmful, especially the proposed change to the VAT distribution model to one based on derivation.”
“Under the proposed system, VAT is remitted based on the location of a company’s headquarters and tax office, as well as where the goods and services are consumed,” the communiqué went on to clarify.
According to the governors, the strategy would jeopardise the economic health of the area.
The proposed revisions were thus overwhelmingly rejected by the forum, which also called on National Assembly members to boycott any bills that may jeopardise the interests of the Northern people.
