Amid ongoing controversy surrounding the Tax Reform Bills, President Bola Tinubu has instructed the Ministry of Justice to collaborate with the National Assembly(NASS) to address the concerns raised by Nigerians.

The President, currently in South Africa, issued the directive on Tuesday, as northern youth demonstrated their support for the bills at the National Assembly.

The bills in question – the Nigeria Tax Bill 2024, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill – have sparked heated debates across the nation. Northern governors and lawmakers have voiced strong opposition to the proposed legislation.

Critics opposed that the reforms could upset the fiscal federalism balance by centralizing tax authority and reducing state revenues.

In response to the public outcry, President Tinubu has ordered the Federal Ministry of Justice, along with officials who contributed to the bill’s drafting, to work closely with the National Assembly to address any legitimate concerns before the bills are passed.

A statement issued by the Minister of Information and National Orientation, Mohammed Idris, titled: “President Tinubu committed to accountability on tax bills, directs Ministry of Justice to work with NASS on concerns,” outlined the President’s stance.

“The Federal Government welcomes constructive input to address any grey areas in the bills,” said the minister. “In this regard, President Tinubu has directed the Ministry of Justice and relevant officials to work with the National Assembly to ensure that all genuine concerns are resolved before the bills are enacted.”

Earlier, on October 28, the Northern Governors’ Forum, representing governors from the 19 northern states, rejected the new derivation-based model for Value-Added Tax (VAT) distribution outlined in the reform bills. They expressed concerns that the changes could undermine their regions’ financial autonomy.

Subsequently, the National Economic Council, which includes all 36 state governors, urged the President to withdraw the Tax Reform Bill from the National Assembly for broader consultations.

However, President Tinubu has maintained that there is no need to withdraw the bill.

Governor Babagana Zulum of Borno State cautioned that, although the President could use executive powers to pass the tax bills, it would have significant consequences for millions of Nigerians. Zulum argued that the proposed VAT-sharing model would disproportionately benefit Lagos and Rivers states.

In contrast, the Governor of Nasarawa State, Abdullahi Sule, former House of Representatives Speaker Yakubu Dogara, and several other northern leaders have expressed support for the bills.

Despite the controversy, the Senate recently passed the bills for a second reading, drawing sharp criticism.

The Presidency issued a statement on Monday, asserting that many of the criticisms from political leaders and commentators were based on misinformation or a lack of understanding of the bills. It emphasized that the tax reforms would not disproportionately benefit Lagos or Rivers at the expense of northern states.

The Information Minister also echoed this position, stressing that the fiscal reforms would not impoverish any region or state and would not result in the dismantling or weakening of federal agencies.

The Federal Government has welcomed the nationwide debate on the bills, stating that such discussions are fundamental to the democratic process.