Coalition of Arewa Groups Backs President Tinubu’s Tax Reform Bills, Urges Swift Passage by National Assembly

President Bola Tinubu’s tax reform proposals have received backing from the Coalition of Arewa Groups, a body of 300 organizations from 19 Northern states. These reforms, which include the Nigeria Revenue Service Establishment Bill, the Nigeria Tax Bill 2024, the Tax Administration Bill, and the Joint Revenue Board Establishment Bill, aim to restructure Nigeria’s tax and revenue collection framework.

Some Northern elites, including traditional leaders and the Northern Governors Forum (NGF), have voiced opposition, suggesting the reforms could economically disadvantage the North. Additionally, Senator Ali Ndume (APC Borno South) publicly opposed the measures, stating, “I can tell you that it will be dead on arrival. We don’t need to study the bill,” citing the financial hardship many Nigerians currently face.

However, the Coalition of Arewa Groups announced its support for the bill after a detailed review and assessment at a meeting in Kaduna on Friday. The Coalition praised Tinubu’s initiative to restructure the fiscal system, issuing a statement co-signed by Obadiah Amos and Alhaji Usman Abubakar, which said the proposed tax cuts could promote sustainability and economic progress.

The statement read: “We, the Coalition of Arewa Groups, comprising 300 organizations across the 19 northern states, gathered in Kaduna on Friday to deliberate on President Bola Ahmed Tinubu’s tax bill. After thorough examination and exhaustive consideration, we unequivocally endorse the proposed legislation.”

The Coalition highlighted key features of the bill, including a gradual increase in Value Added Tax (VAT) from 7.5% to 15% by 2030, a Company Income Tax rate set at 27.5% for large companies (reducing to 25% by 2026), a 4% development levy for the Student Education Loan Fund, and a 5% excise duty on lottery, gaming, and telecommunications services.

They also commended Zacch Adedeji, the Chairman of the Federal Inland Revenue Service (FIRS), for his efforts to clarify the bill through media engagements, which they believe helped the public better understand its objectives. The Coalition called on the National Assembly to expedite the bill’s passage for timely implementation.

The Coalition’s statement further acknowledged the importance of transparency, praising the bill’s provisions for price transparency in publishing services. “In conclusion, we reaffirm our endorsement of President Tinubu’s tax bills. We urge the National Assembly to expedite the passage of the Nigeria Tax Bill 2024, ensuring its timely implementation,” the statement concluded.