President Bola Tinubu has rejected the National Economic Council’s (NEC) proposal to withdraw the controversial tax reform bills.

In a statement issued by his spokesman, Bayo Onanuga, Mr Tinubu asked NEC to allow the process run its full course.

It explained that the president emphasised that any input from the council could be incorporated during the public hearing, adding that the bill had already been submitted to the National Assembly.

Recommendations for the withdrawal of the bills were reached at the 144th meeting of the NEC presided over by Vice President Kashim Shettima. 

The recommendations came after the governors of the 19 northern states met in Kaduna on Monday, with some prominent traditional rulers from the region to reject the Nigeria Tax Reform Bills.

“President Bola Tinubu has received the National Economic Council’s recommendation that the tax reform bills already sent to the National Assembly be withdrawn for further consultation,” the statement read.

The statement further explained that any revisions should be handled through the legislative branch of government. 

“President Tinubu commends the National Economic Council members, especially Vice President Kashim Shettima and the 36 State Governors, for their advice. He believes that the legislative process, which has already begun, provides an opportunity for inputs and necessary changes without withdrawing the bills from the National Assembly.

“While urging the NEC to allow the process to take its full course, President Tinubu welcomes further consultations and engagement with key stakeholders to address any reservations about the bills while the National Assembly considers them for passage.

“When President Tinubu set up the Presidential Committee on Tax and Fiscal Policy Reform in August 2023, he had only one objective: to reposition the economy for better productivity and efficiency and make the operating environment for investment and businesses more conducive. This objective remains more critical even today than ever before.”

It added, “The Committee worked for over a year and received inputs from various segments of society across the geopolitical zones, including trade associations, professional bodies, different Ministries and Government Agencies, governors, traders, students, business owners, and the organised private sector.

“The tax reform bills that emerged were distilled from the extensive work of the Presidential Committee.

“The tax bills before the National Assembly aim to streamline Nigeria’s tax administration processes, completely overhaul the nation’s tax operations, and align them with global best practices.”

On September 3, Mr Tinubu transmitted four tax reform bills to the National Assembly for consideration.

The bills are the Nigeria Tax Bill 2024 and the Tax Administration Bill, which will provide a clear and concise legal framework for all taxes in the country and reduce disputes.

The others are the Nigeria Revenue Service Establishment Bill, which will repeal the Federal Inland Revenue Service Act and establish the Nigeria Revenue Service, and the Joint Revenue Board Establishment Bill, which will create a tax tribunal and a tax ombudsman.