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Tax Reform Debate Heats Up As Presidency Lobbies Lawmakers Amid Northern Pushback

Tax Reform Debate Heats Up As Presidency Lobbies Lawmakers Amid Northern Pushback
The Presidency has escalated its efforts to lobby lawmakers for the passage of the controversial tax reform bills, with reports indicating that the leadership of the House of Representatives has called a crucial meeting with caucus leaders today. The meeting aims to rally support for the bills,...READ MORE…
which the Presidency seeks to have approved before the year’s end so they can be implemented alongside the 2025 budget starting January 1, 2025.
This renewed push comes amidst strong resistance from northern governors and traditional rulers, who have raised objections to specific provisions in the proposed reforms. Notably, the Northern States Governors’ Forum has rejected the move to adopt a derivation-based model for value-added tax (VAT) distribution, arguing that it would disproportionately impact northern states and other regions.
Despite the opposition, President Bola Tinubu has urged the National Assembly to continue advancing the bills, following recommendations from the National Economic Council (NEC), chaired by Vice President Kashim Shettima, for further scrutiny of the reforms.
A lawmaker, who wished to remain anonymous, confirmed that the Presidency is actively lobbying for support. Speaking to Daily Trust, the lawmaker said, “They are reaching out to gain the backing of lawmakers and want us to support the bills to ensure their passage.”
The lawmaker added that while lobbying is common in advanced democracies like the United States, it is important to recognize that resistance from those who feel disadvantaged by the reforms is also valid.
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