In response to mounting opposition, President Bola Tinubu has started sending emissaries to the northern elite to clear the way for the passage of the tax reform bills, Sunday PUNCH reports.

Sources in the Presidency said Tinubu was also consulting with the political class for support on the bills.

An official, who spoke on condition of anonymity because he was not authorised to speak to the press on the matter, said, “What I know is that he (President Tinubu) has been consulting with some of the northern elite at individual level and as groups, even before the holidays.”

Another top source said the President was using “back channels” and other means to win over opposition to the bills.

“He is reaching out through different channels that are available to him to make sure that the grey areas of the bill are smoothened out,” the source added.

However, northern governors have insisted that nothing will change their minds on the bills.

While saying they remained unmoved by Tinubu’s overtures, they demanded that the bills be withdrawn from the National Assembly for further consultation.

The tax reform bills were introduced to the National Assembly by the executive in October 2024.

They include the Nigeria Tax Bill 2024, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.

Northern govs adamant

Following the introduction of the bills, the Northern Governors Forum immediately rejected them, arguing that the proposed model for the distribution of Value Added Tax would severely disadvantage the region.

In a communiqué released on October 28, the forum expressed deep concern, stating, “The forum notes with dismay the contents of the recent Tax Reform Bills forwarded to the National Assembly. The reforms, particularly the proposed amendment to the distribution of VAT to a derivation-based model, are detrimental to the interests of the north and other sub-nations.”

The communiqué further explained that under the proposed system, VAT is remitted based on the location of a company’s headquarters and tax office, as well as where the services and goods are consumed.

The governors argued that the approach would undermine the region’s economic well-being.
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