Northern Region Not Against Tinubu’s Tax Reform – Presidency

The Presidency has debunked the notion that the northern region is against President Bola Tinubu’s Tax Reform Bills.

According to the Special Adviser to the President on Policy Communication, Daniel Bwala, the only people against the bills are the governors.

Bwala made the statement while appearing on Channels Television, where he emphasized that the tax reform bills are not a regional issue, but rather a matter of governors trying to protect their interests.

“The tax reform bills have come to stay, and they will be passed. Let us forget that it is the North vs. the South; it is the governors are going to be impacted,” he said.

The tax reform bills, which were forwarded to the National Assembly by President Tinubu on October 3, 2024, aim to reform the tax sector, including changing the name of the Federal Inland Revenue Service (FIRS) to the Nigeria Revenue Service (NRS). The bills also propose a significant shift in VAT revenue distribution, allocating revenues based on the states where goods and services are most generated and consumed.

Despite the benefits of the tax reform bills, some governors have expressed opposition to the bills, citing concerns over the potential reduction in their states’ income. However, Bwala maintains that the bills are not targeted at any particular region, but rather aim to promote fairness and equity in the tax system.

“It is the governors from states where their income will reduce if the derivation is applied. These set of governors are in the majority of the states and not limited to the North.

“Maybe the governors from the north have decided to be vocal about it.

“But in the midst of this cacophony of positions between the governors and the federal government remember, even the case of Local Government autonomy it wasn’t a case of region it was still the governors because local government autonomy from the beginning was considered an initiative that would weaken their powers…”

The Northern Governors Forum and the Northern Traditional Rulers Council had initially rejected the Tax Reform Bill, citing concerns over the potential impact on their states’ economies.