The National Economic Council (NEC) has recommended the withdrawal of the Tax Reforms Bill from the National Assembly to President Bola Tinubu to allow for wider consultations.
Disclosing this to journalists at the end of the 145th NEC meeting at the State House, Abuja, the Oyo Governor Seyi Makinde said this formed part of resolutions reached at the meeting.
Makinde said Council members agreed that it was necessary to allow for consensus building and understanding of the bill among Nigerians.
Makinde added that this decision for the benefit of the country and emphasised the need for further consultations regarding the bill.
“NEC today took a presentation from the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms. Their main focus is fair taxation, responsible borrowing and sustainable spending.
“The Council acknowledged that the country is underperforming on all indices as regards yields from major revenue sources, also tax to GDP ratio and so on.
“So after extensive deliberation, NEC noted the need for sufficient alignment between and amongst the stakeholders for the proposed reforms.
“So Council therefore recommend the need to withdraw the bill currently before the National Assembly on tax reforms, so that we can have wider consultations and also build consensus around these reforms, for the benefit of the entire country, and also to give people, for them to know the vision and where we are moving the country in terms of a tax reform, because there’s really a lot of miscommunication, misinformation.
“So, the bill will be withdrawn from the National Assembly and then there will be consultations afterwards,” he said.
NEC’s decision is coming days after the Northern Governors kicked against the reform bill and counter explanation by the presidency it was not against the region.
At a meeting on October 28, 2024, Northern Governors’ Forum, rejected the new derivation-based model for Value-Added Tax distribution in the new tax reform bills before the National Assembly.
The Council also approved “Solutions for Internally Displaced and Host Communities” programme, presented by Hajara Ahmed, project coordinator for a World Bank-supported initiative.
The Minister of Budget and Economic Planning, Atiku Bagudu, who also briefed corresponds after the meeting, said the initiative aims to address the long-term needs of internally displaced persons (IDPs) in Nigeria by improving access to basic services and economic opportunities.
The programme, he added, emphasised investment in resilient infrastructure and support for host communities, recognizing that both groups require assistance to foster sustainable livelihoods.
States are expected to appoint focal persons to facilitate communication with the Federal Ministry of Budget and Economic Planning, which will oversee project implementation alongside the National North East Development Commission.
He said the first major goal of the programme is investment in resilient infrastructure.
