President Bola Ahmed Tinubu has intensified efforts to garner support for his administration’s tax reform agenda by reaching out to northern leaders, as resistance from some northern governors persists.
This development comes amid ongoing debates over the proposed tax reform bills, which aim to address Nigeria’s fiscal challenges and diversify government revenue.
The tax reform bills introduced to the National Assembly by the executive in October 2024 were suspended in December for wider consultation.
They include the Nigeria Tax Bill 2024, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.
Sources within the Presidency revealed that Tinubu has been leveraging back-channel diplomacy and engaging key members of the northern elite, both as individuals and within group settings, to soften resistance to the proposed reforms.
These discussions, reportedly initiated before the festive season, are part of a broader strategy to secure critical support for the bills.
An official, speaking anonymously, disclosed that the president’s emissaries have been deployed to key stakeholders to address concerns and explore areas of compromise The Punch reported.
“What I know is that he (President Tinubu) has been consulting with some of the northern elite at individual level and as groups, even before the holidays,” the source explained.
However, despite these efforts, several northern governors have remained staunchly opposed to the proposed reforms.
Critics argue that the bills disproportionately burden northern states, where economic activities are less diversified compared to the southern regions. They contend that the reforms could exacerbate existing inequalities and strain state budgets already reliant on federal allocations.
The northern governors’ stance underscores a broader challenge faced by the Tinubu administration: balancing the urgency of tax reform with regional sensitivities and political realities.
The resistance has also fueled speculation about the president’s ability to navigate the complex interplay of national and regional interests, particularly as he seeks to implement his ambitious economic agenda.
While details of the backdoor consultations remain undisclosed, analysts suggest that Tinubu’s outreach strategy may include offering concessions or adjusting contentious aspects of the reform bills. These measures could range from phased implementation to increased federal support for affected states.
The stakes are high for Tinubu, as the success of the tax reforms is seen as critical to addressing Nigeria’s fiscal crisis and reducing the country’s dependence on oil revenue. Yet, with northern governors standing their ground, the President’s diplomatic finesse will be tested in the coming weeks.
Observers are watching closely to see if Tinubu’s overtures will yield the political consensus needed to push the reforms through or if regional divisions will continue to stall his administration’s fiscal policies.
Credit: Business Day
