Daniel Bwala, the Special Adviser to President Bola Tinubu on Policy Communication, has clarified that the only opposition to the Tax Reform Bills comes from state governors, not the northern region as previously suggested.
In an interview with Channels Television, Bwala addressed concerns following a joint meeting of the Northern Governors Forum and the Northern Traditional Rulers Council, which rejected the Tax Reform Bill forwarded to the National Assembly by President Bola Tinubu.
Tinubu introduced the Tax Reform Bill to the Senate and House of Representatives on October 3, 2024. Among its provisions is a proposal to rename the Federal Inland Revenue Service (FIRS) to the Nigeria Revenue Service (NRS) and other significant sector reforms.
Bwala emphasized that the primary opposition stems from governors in states where their income would be reduced if the derivation principle in the bill is applied. While some northern governors have been vocal in their opposition, Bwala stressed that this issue is not about a north-south divide but rather concerns state governments whose revenue could be affected.
“The tax reform bills are here to stay, and they will be passed. Let us move past the notion of it being North vs. South. The governors, especially from states where the reform would reduce their income, are the ones raising objections,” Bwala said.
He also drew comparisons to previous governance issues, such as local government autonomy, where governors from all regions expressed similar concerns about diminishing their powers.