President Bola Tinubu’s proposed tax reform bills have stirred division within Nigeria’s National Assembly.
On September 3, the President presented four bills; the Nigeria Tax Bill 2024, Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and Joint Revenue Board Establishment Bill-based on recommendations from the Presidential Committee on Fiscal and Tax Reforms led by Taiwo Oyedele.
The most contentious proposal is a shift to a derivation-based Value Added Tax (VAT) model, which would direct VAT revenue to states where goods are consumed, rather than where companies are headquartered.
This measure has met resistance, particularly from the Northern Governors’ Forum and traditional leaders, who argue it disadvantages northern states and subnational entities.
The National Economic Council (NEC), led by Vice President Kashim Shettima, has also advised a withdrawal for further consultations.
Senator Ali Ndume (APC, Borno South) and Senator Ogoshi Onawo (Nasarawa South) voiced opposition, with Onawo criticizing the administration for proposing additional taxes amid economic hardship.
He argued that Nigerians should not bear further tax burdens without adequate public infrastructure and services.
Conversely, South-West lawmakers defend the bills.
Babajimi Benson, representing Ikorodu Federal Constituency, argued that restructuring the tax system could streamline collection, reduce multiple taxation, and mobilize revenue effectively.
Benson suggested a five percent federal allocation as a fairness measure for less affluent states. Oluwole Oke (Osun State) noted that tax bills should reflect societal needs, assuring that the National Assembly would subject the bills to thorough public scrutiny.
The National Assembly is expected to revisit the debate when it resumes on November 19, with potential public hearings and committee reviews planned to address widespread concerns.
