ABUJA: The National Economic Council (NEC) has called for the harmonization of ideas concerning Nigeria’s tax reforms to enable the country to tap from all its revenue sources for national development. The Oyo State Governor, Seyi Makinde, announced this while briefing journalists at the end of Thursday’s special NEC meeting, chaired by Vice President Kashim Shettima.
According to Voice of Nigeria, revenue is a major source of income for the government at all levels. In a bid to boost its income, the Nigerian government set up a Presidential Committee on Fiscal Policy and Tax Reforms, tasked with improving the revenue base of the country and advising on fiscal matters. An executive bill on tax reforms was recently sent to the National Assembly, which included a proposal to review the formula for the distribution of value-added tax. This proposal faced rejection from Governors of the Northern part of Nigeria.
Governor Seyi Makinde informed journalists that during the over four-hour meeting of the National Ec
onomic Council, it was decided to withdraw the bill from the National Assembly for wider consultation. He emphasized the need for sufficient alignment among stakeholders for the proposed reforms. The council recommended withdrawing the bill to allow for broader consultations and to build consensus around the reforms for the benefit of the entire country.
Makinde noted that the council recognized the miscommunication and misinformation surrounding the tax reform vision. He stated that the bill would draw from the National Survey, followed by consultations. The governor highlighted that Nigeria has struggled to harness its revenue sources effectively, necessitating a more robust approach.
The council also took a presentation from the Chairman of the Presidential Committee on fiscal policy and tax reforms, focusing on fair taxation, responsible borrowing, and sustainable spending. The council acknowledged that the country is underperforming on major revenue indices, including tax to GDP ratio.
Governors of th
e 19 Northern States raised issues with the proposed tax reforms bill earlier in the week, prompting the convening of Thursday’s special NEC meeting to address the concerns.