President Bola Tinubu has firmly reiterated that his administration will not back down from the planned tax reforms, despite ongoing opposition.
Speaking during a media chat in Lagos on Monday, Tinubu emphasized the necessity of these reforms, stating that they were designed to eliminate colonial-era assumptions embedded in the country’s tax system.
The media chat, which aired on Nigerian Television Authority (NTA) on Monday night, marked Tinubu’s first televised interaction with the media since taking office. The tax reform bills, introduced by the President in September 2024, have sparked intense controversy, particularly among northern political leaders, but Tinubu remained resolute about their importance.
“Tax reform is here to stay,” the President declared. “We cannot continue with the same outdated tools in today’s economy. The goal of these reforms is to eliminate colonial-based assumptions and modernize our fiscal policies.”
Tinubu’s position comes in the wake of significant resistance from northern state governors, particularly after 73 northern lawmakers expressed opposition to the bills, leading to a suspension of a planned debate in the House of Representatives on December 3.
The Northern Governors Forum has repeatedly voiced concerns over the reforms, especially regarding the proposed changes to the Value Added Tax (VAT) distribution model. At a recent meeting in Kaduna, Borno State Governor Babagana Zulum warned that the reforms, if rushed, could set the region back economically and disenfranchise states like Oyo, Osun, and Ekiti.
Despite the criticisms, the President defended the tax reforms, which include four key bills designed to overhaul the tax structure: the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.
These bills aim to create a more equitable distribution of tax resources, simplify the legal framework, and establish a tax tribunal for dispute resolution.
Tinubu dismissed calls from the Northern Governors Forum and others for more consultations, stressing that delay would only postpone much-needed economic changes. “The hallmark of a good leader is to make tough decisions when they are required,” he asserted.