President Bola Tinubu has stood firm in his commitment to advancing four tax reform bills currently under review by Nigeria’s parliament, despite growing opposition from several state governors, particularly from the northern region. The proposed reforms are part of Tinubu’s broader strategy to revamp Nigeria’s tax system and increase government revenue in Africa’s largest economy.
One of the most contentious aspects of the reforms is a proposal detailing the allocation of Value Added Tax (VAT) between the federal government and the 36 states. While the president argues that the reforms are essential to modernize the economy, critics, especially from northern Nigeria, claim that the new model could reduce federal allocations to their states and favor southern regions like Lagos and Rivers State.
“Tax reform is here to stay. We cannot continue to rely on outdated systems in today’s economy. We must change our approach to meet the challenges of a modern economy,” Tinubu said during a roundtable discussion aired on Monday night. He emphasized his personal commitment to the reforms, stating, “I have the ability to lead this transformation, which is why I entered the race.”
Last month, the Nigerian parliament began deliberating the four tax bills, which Tinubu has called a “new dawn” for the country. “I am focused on Nigeria’s needs and on what must be done to address them,” he added, stressing that the reforms would benefit the entire nation.
Despite Tinubu’s assurances, many northern political figures, including federal lawmakers and state governors, have expressed concern or outright rejected the bills. They argue that the changes disproportionately benefit Lagos, the economic center of the country, and Rivers State, which is home to Nigeria’s oil industry and key foreign and local businesses. The northern states fear these changes could further marginalize their regions.
Northern leaders have also accused Tinubu of showing favoritism towards Lagos, where he served as governor from 1999 to 2007. While the president’s office has repeatedly dismissed these claims, describing them as “unfounded,” the resistance continues to grow.
As the debate rages on, the future of Nigeria’s tax reforms remains uncertain, with potential implications for the country’s political stability and long-term economic growth.