Governors Divided Over Tinubu’s Tax Reform Bills, Meeting Ends In Deadlock

Strong divisions have emerged among the 36 state governors under the Nigeria Governors’ Forum (NGF) over the controversial tax reform bills pending before the National Assembly.

President Bola Tinubu submitted the bills, which have sparked widespread criticism and opposition, particularly from northern governors.

The ongoing disagreement became evident on Wednesday night, when the governors held a brief and unusually tense meeting at the NGF Secretariat in Abuja. The meeting lasted only an hour and ended without a communiqué or the customary press briefing.

The 19 northern governors have firmly rejected key provisions of the bills, calling for their withdrawal to allow for further consultations.

The National Economic Council (NEC), chaired by Vice President Kashim Shettima and comprising all 36 governors, had expressed opposition to the bills earlier.

The governors convened at 10 p.m. but emerged an hour later without addressing journalists. Observers noted the absence of the usual camaraderie among the attendees, with some walking in clusters according to their regional affiliations.

Sources who spoke with Vanguard revealed that the governors failed to reach a consensus on the tax reform bills, which include the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.

Reports suggest that the meeting’s late start and the staggered arrival of governors indicated underlying tensions. Two governors arrived first, followed by Senator Hope Uzodinma, the governor of Imo State and Chairman of the Progressive Governors’ Forum. He came with his APC colleagues after meeting with party Chairman Abdullahi Ganduje and President Tinubu at the Presidential Villa.

Governors reportedly aligned with regional positions on the bills at the meeting, with APC governors appearing more coordinated after their earlier consultations.

Governors Alex Otti of Abia State (Labour Party), Chukwuma Soludo of Anambra State (All Progressives Grand Alliance), and Plateau State Governor Caleb Mutfwang (Peoples Democratic Party) were also in attendance.

The bills, transmitted to the National Assembly on October 3, 2024, were drafted following recommendations from the Presidential Committee on Fiscal and Tax Reforms, chaired by Taiwo Oyedele.

The proposed laws aim to overhaul Nigeria’s tax system, with key provisions including:

– The Nigeria Tax Bill 2024, which provides a fiscal framework for taxation.

– The Tax Administration Bill, designed to streamline tax processes and reduce disputes.

– The Nigeria Revenue Service Establishment Bill, which seeks to replace the Federal Inland Revenue Service with a new agency.

– The Joint Revenue Board Establishment Bill, which proposes the creation of a tax tribunal and ombudsman.

While Tinubu’s administration has described the reforms as critical to improving Nigeria’s revenue generation, resistance from governors and other stakeholders suggests a long road ahead for the bills.