Presidency defends tax reform bills amid calls for caution

Senior Special Assistant to the President on Media and Publicity, Temitope Ajayi, stated today via X that the reforms are the culmination of contributions from over 80 professionals over a 14-month period.

He cautioned that delaying the bills’ passage could replicate the prolonged 20-year legislative process of the Petroleum Industry Bill (PIB).

Ajayi described postponing the tax reforms as a costly mistake Nigeria cannot afford.

“It is misleading to claim that the Tax Reform Bills—products of 14 months of meticulous work by over 80 professionals from across the country—are being rushed through the National Assembly,” Ajayi said.

“Drawing comparisons to the PIB’s 20-year delay reflects backward thinking. The delay in passing the PIB cost Nigeria heavily in lost revenue, investments, and jobs in the oil and gas sector,” he added.

Ajayi also shared a detailed 14-month timeline of the bills’ development, illustrating the depth of the preparatory work.

Zulum’s Perspective

However, Borno State Governor, Babagana Zulum, expressed concerns over the potential consequences of the bills, particularly for the Northern region.

Speaking to BBC Hausa, Zulum criticized the speed of the legislative process, comparing it to the PIB’s extended timeline.

“Why the rush? The PIB took nearly 20 years to pass. This tax reform bill is being transmitted and receiving legislative attention within a week. It should be handled carefully to ensure long-term benefits for future generations,” Zulum said.

He further warned that if the four tax bills currently under review are passed, Lagos State could emerge as the sole significant beneficiary among Nigeria’s 36 states.

Lessons from the PIB

Ajayi used the PIB’s 20-year journey as a cautionary tale, highlighting missed opportunities caused by political gridlock, regional disagreements, and a lack of urgency.

He stressed that these delays hampered Nigeria’s ability to attract global investments and modernize its oil laws, resulting in revenue losses, limited job creation, and weakened economic prospects.

“We cannot afford to wait another 20 years to enact critical reforms,” Ajayi warned.

A Rigorous 14-Month Process

In contrast to the PIB, the Tax Reform Bills were developed through a rigorous process involving over 80 experts from various regions and sectors across Nigeria.

Ajayi dismissed claims that the bills are being rushed or influenced by ulterior motives, emphasizing their necessity for Nigeria’s economic stability and growth.

With declining oil revenues and rising debt, Ajayi argued that Nigeria must diversify its economy and improve its tax system to sustain critical public services. Any delay, he cautioned, could endanger the country’s economic future.

“The key is to make decisions transparently, accountably, and in the nation’s best interest,” Ajayi stressed, urging lawmakers to act swiftly and prioritize national unity over political differences.