By John Audu, Abuja.
In response to circulating misconceptions, the Presidency has clarified that the northern region is not opposed to President Bola Tinubu’s Tax Reform Bills. This clarification came from Daniel Bwala, the Special Adviser to the President on Policy Communication, during an appearance on Channels Television.
Bwala emphasized that the opposition stems primarily from governors, not from regional divides. “The tax reform bills are here to stay and will be passed. This issue isn’t about North versus South; it’s about governors protecting their interests,” Bwala stated.
The Tax Reform Bills, presented to the National Assembly by President Tinubu on October 3, 2024, aim to overhaul the tax sector. Key changes include renaming the Federal Inland Revenue Service (FIRS) to the Nigeria Revenue Service (NRS) and altering the distribution of VAT revenue to reflect the states where goods and services are produced and consumed.
Despite the reforms’ potential benefits, some governors have opposed them due to concerns about reduced revenue for their states. Bwala, however, argues that the bills are designed to enhance fairness and equity within the tax system, not to target any specific region.
“The opposition is from governors whose states might see reduced income under the new derivation formula. This group represents a majority of states, not just those in the North,” Bwala explained. “While northern governors may be more vocal, the root of the issue lies in governance, similar to the debate over local government autonomy, which also faced resistance from governors rather than regions.”
The Northern Governors Forum and the Northern Traditional Rulers Council had initially expressed reservations about the Tax Reform Bills, concerned about potential economic impacts on their states. However, the Presidency’s reassurance underscores that the reforms aim for a balanced and equitable tax structure across the nation.
