National Assembly Resumes Today, Set To Fast-Track Tax Reform Bills

The National Assembly will resume plenary today, with plans to expedite the passage of the much-debated tax reform bills, Daily Trust has learned.

Following its first plenary of the year on January 14, 2025, both chambers adjourned until January 28 to allow committees to conclude work on the 2025 Appropriation Bill, presented by President Bola Tinubu on December 18, 2024.

However, the resumption was further pushed to February 4, to give committees more time to engage with Ministries, Departments, and Agencies (MDAs) on the budget.

Before the legislative recess, President Tinubu’s tax reform bills, submitted on October 13, 2024, were at the centre of heated debates.

Lawmakers, particularly from the North, alongside northern governors and traditional rulers, had called for the withdrawal of the bills, arguing they would worsen economic hardship in their region.

Naija News recalls that during the recess, the Nigerian Governors’ Forum (NGF) met with the Presidential Committee on Tax Policy and Fiscal Reforms, which championed the reforms, and reached a compromise.

The governors endorsed the bills after securing key adjustments, particularly on Value Added Tax (VAT) revenue allocation.

Under the original proposal, 60% of VAT revenue was to be distributed based on derivation, meaning states would receive funds proportional to VAT generated within their territories—a move that sparked opposition from northern states.

To ensure a more equitable distribution, the governors proposed the following adjustments:

– 30% of VAT revenue to be allocated based on derivation (down from 60%).

– 50% of VAT revenue to be shared equally among all states.

– 20% of VAT revenue to be distributed based on state population.

Following the agreement, Governor Abdullahi Sule of Nasarawa State confirmed that governors would work with their legislators to ensure the bills are passed in line with the revised consensus.