Northern Youth Forum backs FG’s proposed Tax Bills for Nigeria 

The Progressive Northern Youth Forum (PNYF) has backed the Federal Government’s Tax Reform Bill, stating that it can “turn the fortune of the country” around.

PNYF General Secretary Abdulkadir Bala disclosed this in a statement on November 2, 2024, after its National Executive Committee’s deliberation on President Bola Ahmed Tinubu‘s rejection of the National Economic Council’s (NEC) recommendation to withdraw the tax reform bills.

PNYF expressed support for the President’s decision to disregard the stance of NEC members, particularly the Northern Governors’ Forum, stating that the decision by NEC and the Northern Governors’ Forum “does not represent the views of the people in the region.” 

Tax Reform Bills Are People-Oriented 

According to the group, the governors have allegedly demonstrated a consistent lack of initiative to lead the North, instead relying on federal allocations and squandering the resources of the people, rather than proposing similar bills to enhance their states’ internally generated revenues.

• The forum argued that if the governors, who are part of the NEC, genuinely cared for their constituents, they would have taken advantage of the opportunity to provide input and propose changes during the legislative process, rather than calling for the withdrawal of the bills from the National Assembly.

“What is the Northern Governors’ Forum afraid of? Clearly, they are afraid of taking responsibility. They want to continue being financially sustained by the Federal Government without making efforts to develop their own revenue-generating initiatives. There is no evidence to show that the current Northern governors have effectively utilized all the allocations they have received from President Tinubu’s federal government. 

“The governors should stop opposing people-oriented bills brought forth by the federal government and focus on fulfilling their responsibilities to the public. Otherwise, the people may feel compelled to demand their impeachment or resignation,” the statement partly reads.

The forum commended President Tinubu for remaining steadfast in his support of the tax reform bills, despite attempts to dissuade him, adding that residents in the North fully support the tax reform bills as they aim to streamline Nigeria’s tax administration processes and completely overhaul the nation’s tax operations to align with global best practices.

Backstory 

Nairametrics previously reported that President Bola Tinubu had rejected the National Economic Council’s (NEC) proposal to withdraw the controversial tax reform bill, insisting that the council follow the “legislative process.”

• In a statement on Friday, Tinubu’s spokesperson, Bayo Onanuga, said the president emphasized that any input from the council could be incorporated during the public hearing.

“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.” 

• Nairametrics previously reported that the National Economic Council (NEC), which includes the 36 state governors and is chaired by Vice President Kashim Shettima, had recommended the withdrawal of the Tax Reform Bill currently before the National Assembly. The council’s suggestion was in response to a presentation by Mr. Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, who emphasized the need for broader consultation with stakeholders to ensure alignment on the substantial impacts of the proposed tax reforms.
• The Vice President noted that the tax reforms introduced under President Bola Ahmed Tinubu’s Renewed Hope Administration aim to broaden the country’s revenue base, enhance economic stability, and lessen dependency on specific sectors.
• He acknowledged that these reforms present an opportunity to address stakeholders’ concerns, particularly regarding VAT reform and its effect on sub-national revenues.

Governors of the 19 Northern states, along with traditional rulers and stakeholders from the region, expressed opposition to the bill, particularly concerning the draft on the derivation-based model for Value Added Tax (VAT) distribution among the country’s federating units.