The Governor of Nasarawa State, Abdullahi Sule, has clarified that it is incorrect to claim the governors of Nigeria’s 36 states are opposed to the Tax Reform Bills. He explained that the governors merely sought clarification on certain aspects of the proposed legislation.
Speaking during a Channels Television Townhall on the Tax Reform Bills on Monday, the governor commended the bills but pointed out that there are areas requiring further explanation.
“The issue of increasing VAT from 20 per cent to 60 per cent at the point of generation – and I’m pleased that Taiwo mentioned this has now shifted to include consumption as well – is a step in the right direction,” Governor Sule remarked.
“These were some of the concerns raised by the governors. They simply suggested withdrawing the bills temporarily to allow for discussions and better understanding,” he added.
The governor stated that such a Townhall meeting, organised by Channels Television, should have occurred before the bills were submitted to the National Assembly.
He explained, “If Taiwo Oyedele’s Tax Reform Committee had taken these steps earlier and provided detailed explanations, there wouldn’t have been any calls to withdraw the bills. That was the point being made by the governors.”
In response, Mr Taiwo Oyedele, Chair of the Tax Reform Committee, expressed gratitude to Governor Sule and the Governors’ Forum for their constructive feedback. He acknowledged their concerns but noted that engaging in multiple meetings with the governors would have significantly delayed the process.
Mr Oyedele explained that while the Committee had attempted to engage Nigerians on the bills, public interest at the time was minimal. However, he assured that the Committee is now prepared to revisit the process and provide further clarifications since interest in the bills has grown.
The proposed Tax Reform Bills have sparked widespread debate since their introduction to the National Assembly. The legislation has faced significant resistance, particularly from Northern Nigeria.
In response to the controversy, the National Economic Council advised President Bola Ahmed Tinubu to withdraw the bills to allow for further consultation. However, the President insisted that the bills should proceed through the legislative process.
Last week, the bills passed second reading in the Senate via a voice vote.
The Tax Reform Bills aim to harmonise, coordinate, and resolve disputes related to revenue administration in Nigeria.