Friday, December 13

A deep divide has emerged among Nigeria’s 36 state governors over the controversial tax reform bills currently before the National Assembly. The proposed laws, submitted by President Bola Tinubu, have faced sharp criticism, particularly from northern governors.

The tension was evident during a brief and unusually tense meeting of the Nigeria Governors’ Forum (NGF) on Wednesday night at their Abuja Secretariat. The meeting, which lasted only an hour, ended abruptly without a press briefing or the usual communique.

Nineteen northern governors have firmly opposed significant parts of the proposed reforms, calling for their withdrawal to allow for broader consultations. Earlier, the National Economic Council (NEC), chaired by Vice President Kashim Shettima and comprising all 36 governors, had also expressed concerns over the bills.

The governors convened at 10 p.m., but their hour-long deliberation ended with no consensus. Notably, the customary camaraderie among them was missing, with some leaving in small regional groups, hinting at underlying divisions.

Insiders revealed the governors were unable to agree on the proposed reforms, which include the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill. Reports suggest staggered arrivals and a late start to the meeting reflected the mounting tensions.

Key attendees included Governors Alex Otti of Abia State (Labour Party), Chukwuma Soludo of Anambra State (APGA), and Caleb Mutfwang of Plateau State (PDP). Senator Hope Uzodinma, Imo State Governor and Chair of the Progressive Governors’ Forum, arrived alongside APC colleagues after an earlier consultation with party leaders at the Presidential Villa.

The bills, transmitted to the National Assembly on October 3, 2024, were based on recommendations from the Presidential Committee on Fiscal and Tax Reforms, led by Taiwo Oyedele. The reforms propose sweeping changes to Nigeria’s tax structure, including:

  • The Nigeria Tax Bill 2024, which outlines a new fiscal framework for taxation.
  • The Tax Administration Bill, aimed at simplifying tax processes and resolving disputes.
  • The Nigeria Revenue Service Establishment Bill, to replace the Federal Inland Revenue Service with a new agency.
  • The Joint Revenue Board Establishment Bill, which proposes creating a tax tribunal and ombudsman.

While the federal government has emphasized the importance of these reforms for boosting revenue, the resistance from governors highlights the challenges ahead.

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