The governors of the nineteen Northern states had rejected the bill, especially the proposed amendment to the distribution of Value Added Tax (VAT) to a derivation-based model.

But in a statement today, presidential spokesman, Bayo Onanuga, said the new proposal, as enunciated in the bill, is designed to create a fairer system that will benefit all states.

Onanuga, the Special Adviser on Information and Strategy to President Bola Tinubu, stated that the ongoing tax reform seeks to correct the inequity in the current derivation model as a basis for distributing VAT revenue.

According to Onanuga, the new policy initiatives are aimed at streamlining Nigeria’s tax administration processes, enhancing efficiency and eliminating redundancies across the nation’s tax operations.  

He explained that the reforms being proposed are critical to improving the lives of Nigerians and were not put forward by President Tinubu to undermine any part of the country.

Meanwhile, the National Economic Council has asked President Bola Tinubu to withdraw the Tax Reforms Bills from the National Assembly to allow for wider consultations and consensus building.

According to the Governor of Oyo State, Seyi Makinde, this formed part of resolutions reached at the 144th meeting of the National Economic Council at the State House, Abuja.

Makinde told newsmen that the council members agreed that it was necessary to allow for consensus building and understanding of the bills among Nigerians.

He stated that this decision was made for the benefit of the country and emphasized the need for further consultations regarding the bills.

President Bola Tinubu and the Federal Executive Council recently endorsed new policy initiatives to streamline Nigeria’s tax administration processes.

The Federal Government says the new laws are meant to enhance efficiency and eliminate redundancies across the nation’s tax operations.

The reforms emerged after a review of existing tax laws since August 2023.