By Abiola Olawale
President Bola Ahmed Tinubu has reportedly initiated a move to engage with northern elites to garner support for the tax reform bills, which are currently facing strong opposition from the governors of Northern States.
According to a report by the Punch newspaper, Tinubu is employing “back channels” and direct consultations to smoothen out perceived issues with the bills.
The New Diplomat reports that the tax reform bills which aim to overhaul Nigeria’s tax system, have sparked significant debate, particularly over areas dealing with proposed changes to the Value Added Tax (VAT) distribution model.
The opposition primarily stems from concerns over the distribution of Value Added Tax (VAT) under the new proposals, with Northern governors arguing that it would disproportionately benefit certain states, particularly Lagos, at the expense of others, especially in the North.
Northern leaders have also expressed worries that the reforms could undermine the region’s economic stability, potentially impacting salary payments and exacerbating issues like poverty and insecurity.
The northern governors had also maintained that these bills to be withdrawn from the National Assembly for further consultation.
However, a presidential source who spoke with the press, according to the punch, said Tinubu has already developed strategies involving private consultations and “back channels” to address these concerns.
The source added that the diplomatic approach is seen by the President as an attempt to mitigate regional tensions and ensure the bill’s passage through the National Assembly.
The source stated: “What I know is that he (President Tinubu) has been consulting with some of the northern elite at the individual level and as groups, even before the holidays.
“He is reaching out through different channels that are available to him to make sure that the grey areas of the bill are smoothened out.”
The New Diplomat reports that the bills, which were introduced in October 2024, are said to be aimed at restructuring Nigeria’s tax system through several pieces of legislation like the Nigeria Tax Bill 2024, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.
