The Northern Governors have rejected the recent tax reform bill submitted to the National Assembly by President Bola Ahmed Tinubu’s administration.
This decision was disclosed in a communiqué issued on Monday by Muhammadu Inuwa, the Chairman of the Northern Governors’ Forum and Governor of Gombe State.
President Tinubu had forwarded the tax reform bill to the Senate and House of Representatives on October 3, 2024, which includes reforms such as changing the name of the Federal Inland Revenue Service (FIRS) to the Nigeria Revenue Service (NRS).
However, the governors expressed opposition to the bill, particularly the proposed amendment to the distribution of value-added tax (VAT) to a derivative-based model.
The Northern Governors’ Forum noted with dismay the content of the recent Tax Reform Bill, stating that it “goes against the interests of the north and other sub-nationals.”
“The proposed amendment to the distribution of VAT to a derivation-based model is unacceptable, as companies remit VAT based on their headquarters’ location, rather than where services and goods are consumed,” the governors explained.
In light of this, the Forum unanimously rejected the proposed tax amendments and urged members of the National Assembly to oppose the bill.
The Forum clarified that it is not against policies promoting national growth and development but advocates for equity and fairness in implementing national policies to prevent marginalization.
“For the avoidance of doubt, the Northern Governors’ Forum supports policies benefiting the nation but insists on fairness to ensure no geopolitical zone is disadvantaged or marginalized,” they stated.
