The National Economic Council (NEC) has expressed strong reservations regarding President Bola Tinubu’s Tax Reform Bill submitted to the National Assembly. NEC, chaired by Vice President Kashim Shettima, has recommended the bill’s withdrawal to allow for more comprehensive consultations with key stakeholders, particularly state governors.

Oyo State Governor Seyi Makinde, speaking on behalf of NEC after its meeting at the Presidential Villa in Abuja, emphasized the council’s concern over the absence of adequate stakeholder alignment in the bill’s drafting. He highlighted the need to consider input from stakeholders to ensure a tax framework that benefits all Nigerians.

“NEC took a presentation from the Presidential Committee on Fiscal Policy and Tax Reforms focused on fair taxation, responsible borrowing, and sustainable spending,” Makinde stated. “Council recommended withdrawing the bill to foster broader consultation and consensus for the benefit of the country.”

The call for withdrawal comes days after the Northern Governors’ Forum raised concerns over specific provisions, particularly the proposed VAT-sharing structure. According to Gombe State Governor Inuwa Yahaya, representing the Northern Governors’ Forum, the bill’s current form could disadvantage northern states, as VAT is allocated based on a company’s headquarters rather than where goods and services are consumed.

The forum unanimously called on northern legislators to oppose the bill in its current state, stressing the importance of equity and fairness in national policies to prevent any geopolitical marginalization.