The Nigerian Presidency is lobbying the National Assembly to pass four tax reform bills before 2025. The proposals, including a derivation-based VAT model, face resistance from Northern lawmakers and governors. Critics argue the reforms favor revenue-heavy states like Lagos, while proponents highlight the measures’ potential for fiscal transparency and governance improvement.
The Nigerian Presidency is ramping up efforts to secure National Assembly support for four proposed tax reform bills, aiming for implementation alongside the 2025 budget. The leadership of the House of Representatives has called a crucial meeting with caucus leaders to discuss the reforms, with the Presidency lobbying lawmakers to back the legislation before year-end.
Key provisions in the bills include creating a derivation-based value-added tax (VAT) model and establishing the Nigeria Revenue Service, replacing the Federal Inland Revenue Service (FIRS). While the reforms promise fiscal transparency and increased efficiency, they have sparked significant pushback, particularly from Northern lawmakers and governors. Critics argue that the VAT changes would unfairly benefit revenue-generating states like Lagos, leaving Northern states at a disadvantage.
The Northern Elders Forum (NEF) and other stakeholders have expressed dissatisfaction with the lack of consultation, labeling the proposals divisive. Senator Abdul Ningi and others have called on lawmakers to reject the reforms, citing their potential to exacerbate regional inequalities.
Despite the opposition, presidential aides defend the lobbying as a legitimate democratic process. Special Adviser Daniel Bwala emphasized that the reforms align with President Tinubu’s campaign promises, aimed at delivering good governance.
As debate intensifies, lawmakers face the challenge of balancing regional interests with national economic goals. The bills' passage could mark a turning point for Nigeria’s tax landscape, but the journey remains fraught with political tension.
