Tinubu Stands Firm on Tax Reform Amid National Discontent
President Bola Tinubu has firmly rejected calls to retract his administration’s sweeping tax reform bills, stating that the reforms are crucial to dismantling colonial-era tax structures and revitalising Nigeria’s economy. Speaking during his first Presidential Media Chat in Lagos on Monday, aired on the Nigerian Television Authority, Tinubu declared there would be “no going back” on the measures, despite widespread criticism.
The tax overhaul, which includes four bills designed to streamline taxation and broaden the country’s revenue base, has ignited heated debates nationwide. While the South broadly supports the changes as a pathway to equitable resource distribution, resistance from northern states underscores deep-seated fears of economic disadvantage.
Regional Rift Over Tax Reform
The House of Representatives indefinitely postponed a December 3 debate on the tax reform bills, bowing to pressure from the Northern Governors Forum and 73 northern lawmakers. Critics argue the reforms, particularly the proposed adjustments to the Value Added Tax-sharing formula, could disproportionately impact northern states.
Borno State Governor Babagana Zulum voiced concerns about the speed of the legislative process, comparing it unfavourably to the decades-long deliberations on the Petroleum Industry Bill. “The rush is unnecessary,” he told the BBC. “These reforms should be approached with caution to ensure long-term benefits for future generations.”
Despite the backlash, Tinubu defended the reforms as “pro-poor” and necessary to modernise Nigeria’s economy. “We cannot continue using broken tools from yesteryears to fix today’s economy,” he said. “The essence of these reforms is to widen the tax net, ensuring the vulnerable are protected while creating a larger economic pie for everyone.”
Economic Turmoil and Subsidy Fallout
Addressing concerns over economic hardship following the removal of petrol subsidies, Tinubu expressed no regret, describing the move as a painful but essential step. He dismissed calls for a phased approach to subsidy removal, arguing that it would have delayed inevitable fiscal reckoning.
“We were spending our future and deceiving ourselves,” he said. “Smuggling and financial recklessness had to be stopped. This reform is about securing the investments of future generations.”
Stampede Tragedies and Food Insecurity
The President also commented on recent stampedes during palliative distributions that claimed dozens of lives across Nigeria. He blamed poor organisation by event organisers and stressed the need for discipline in public gatherings.
While outlining his strategy to reduce inflation from 34% to 15% by 2025, Tinubu emphasised boosting local agricultural production and minimising imports as key measures to stabilise food prices. However, he rejected price control mechanisms, advocating instead for increased market supply.
Corruption and Governance
Tinubu highlighted the removal of subsidies and increased minimum wage as steps toward combating corruption. He touted anti-corruption efforts, including the ongoing investigation into properties linked to former Central Bank Governor Godwin Emefiele, as evidence of his administration’s commitment to accountability.
“Corruption stems from unmet needs. By addressing these, such as through higher wages and student loans, we can drastically reduce corrupt practices,” he said.
As the dust settles on Tinubu’s first media engagement, the President’s message is clear: his administration is determined to press forward with reforms, even in the face of fierce resistance. However, whether these measures will ultimately bridge Nigeria’s deep economic and political divides remains to be seen.
