The Presidency has defended the proposed tax reform bills aimed at streamlining Nigeria’s tax administration processes, despite opposition from the Northern Governors’ Forum.
According to Special Adviser to the President on Information and Strategy, Bayo Onanuga, the reforms emerged after an extensive review of existing tax laws.
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“The proposed bills are designed to transform and modernize Nigeria’s tax landscape,” Onanuga explained in a Thursday statement.
The Federal Executive Council, presided over by President Bola Tinubu, recently endorsed new policy initiatives to enhance efficiency and eliminate redundancies across the nation’s tax operations.
However, the Governors of 19 Northern States criticized the new derivation-based model for Value-Added Tax (VAT) distribution at a recent meeting of the Northern Governors’ Forum.
Onanuga clarified that the National Assembly is currently considering four executive bills.
“The first bill is the Nigeria Tax Bill, which aims to eliminate unintended multiple taxation and make Nigeria’s economy more competitive by simplifying tax obligations for businesses and individuals nationwide,” he stated.
He further explained that the Nigeria Tax Administration Bill proposes new rules governing the administration of all taxes in the country.
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“Its objective is to harmonize tax administrative processes across federal, state, and local jurisdictions for ease of compliance for taxpayers in all parts of the country,” he noted.
Additionally, Onanuga disclosed that the Nigeria Revenue Service (Establishment) Bill seeks to rename the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS).
This change, he said, “reflects the mandate of the Service as the revenue agency for the entire federation, not just the Federal Government.
Also, the Joint Revenue Board Establishment Bill proposes the creation of a Joint Revenue Board to replace the Joint Tax Board, covering federal and all states’ tax authorities.
“This bill also suggests establishing the Office of Tax Ombudsman under the Joint Revenue Board, which would serve as a complaint resolution body for taxpayers,” Onanuga added.
The Northern Governors’ Forum, chaired by Governor Muhammed Inuwa Yahaya of Gombe State, opposed the policy, citing concerns over the VAT distribution model.
However, the Presidency remains committed to pushing forward with the reforms, ensuring a more efficient and streamlined tax administration process for Nigeria.
Onanuga emphasized that the reforms would enhance the country’s tax landscape, making it more competitive and business-friendly.
