The Bola Ahmed Tinubu-led administration has stated that the proposed tax reform bills is not against the north, adding that the bill will benefit all states.

Naija News reports that this was made known in a statement on Thursday by Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga.

Recall that Governors of 19 Northern States of Nigeria, under the platform of the Northern Governors’ Forum, at their meeting on Monday, October 28, 2024, expressed their opposition to the new derivation-based model for Value-Added Tax (VAT) distribution in the new tax reform bills before the National Assembly.

Chairman of the forum, Governor Muhammed Inuwa Yahaya of Gombe State, read the communiqué.

The Northern Governors’ Forum meeting also had traditional rulers from the region, led by the Sultan of Sokoto, His Eminence Muhammadu Sa’ad Abubakar III, in attendance.

Reacting, Tinubu’s spokesperson said: “While we commend the Governors and traditional rulers for supporting President Bola Tinubu over the success recorded in addressing the country’s security challenges, we consider it necessary to address the misunderstandings and misgivings around the tax reform already embarked upon by the administration.

“President Tinubu and the Federal Executive Council recently endorsed new policy initiatives aimed at streamlining Nigeria’s tax administration processes, enhancing efficiency and eliminating redundancies across the nation’s tax operations.

“These reforms emerged after an extensive review of existing tax laws. The National Assembly is considering four executive bills designed to transform and modernise Nigeria’s tax landscape.

“First is the Nigeria Tax Bill, which aims to eliminate unintended multiple taxation and make Nigeria’s economy more competitive by simplifying tax obligations for businesses and individuals nationwide.

“Second, the Nigeria Tax Administration Bill (NTAB) proposes new rules governing the administration of all taxes in the country. Its objective is to harmonise tax administrative processes across federal, state and local jurisdictions for ease of compliance for taxpayers in all parts of the country.

“Third, the Nigeria Revenue Service (Establishment) Bill seeks to rename the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS) to better reflect the mandate of the Service as the revenue agency for the entire federation, not just the Federal Government.

“Fourth, the Joint Revenue Board Establishment Bill proposes the creation of a Joint Revenue Board to replace the Joint Tax Board, covering federal and all states’ tax authorities.

“The fourth bill also suggests establishing the Office of Tax Ombudsman under the Joint Revenue Board, which would serve as a complaint resolution body for taxpayers.

“It is instructive to note that these proposed laws will not increase the number of taxes currently in operation. Instead, they are designed to optimise and simplify existing tax frameworks.

“The tax rates or percentages will remain the same under these reforms, as they focus on ensuring a more equitable distribution of tax obligations without adding to the burden on Nigerians.

“The reforms will not lead to job losses. On the contrary, they are structured to stimulate new avenues for job creation by supporting a dynamic, growth-oriented economy.

“Importantly, these laws will not absorb or eliminate the duties of any existing department, agency, or ministry. Instead, they aim to harmonise revenue collection and administration across the federation to ensure efficiency and cooperation.

“At the moment, tax administration lacks coordination among federal, state, and local tax authorities, often resulting in overlapping responsibilities, confusion, and inefficiency. Without reform, this inefficiency will persist.

“The proposed laws aim to coordinate efforts between different tiers of government, resulting in better tax resource management and greater clarity for taxpayers.

“Under existing laws, taxes like Company Income Tax (CIT), Personal Income Tax (PIT), Capital Gains Tax (CGT), Petroleum Profits Tax (PPT), Tertiary Education Tax (TET), Value-Added Tax (VAT), and other taxing provisions in numerous laws are administered separately, with individual legislative frameworks.

“The proposed reforms seek to consolidate these multiple taxes, integrating CIT, PIT, CGT, VAT, PPT, and excise duties into a unified structure to reduce administrative fragmentation.

“On the proposed derivation-based VAT distribution model, which the Northern Governors oppose, it must be stressed that the new proposal, as enunciated in the Bill, is designed to create a fairer system.

“The current model for distributing VAT is based on where the tax is remitted rather than where goods and services are supplied or consumed. The ongoing tax reform seeks to correct the inherent inequity in the current derivation model as a basis for distributing VAT revenue.

“The new proposal before the National Assembly outlines a different form of derivation which considers the place of supply or consumption for relevant goods and services. This means that states in the Northern region that produce the food we eat should not lose out just because their products are VAT-exempt or consumed in other states.

“These reforms are critical to improving the lives of Nigerians and were not put forward by President Tinubu to undermine any part of the country. There is no better time than now for the National Assembly to give due consideration to these bills that will overhaul our tax systems and create the revenue all the tiers of government require to fund the development our country and people urgently need.”

The Joint Action Committee of the Non-Academic Staff Union of Educational and Associated Institutions and the Senior Staff Association of Nigerian Universities said the ongoing strike is a long-term battle involving even vice-chancellors, bursars and registrars.

On Monday, the JAC of SSANU and NASU embarked on an indefinite strike over its four-month withheld salary.

Since then, activities have been grounded in universities across the country.

In an interview with The PUNCH on Wednesday, the National President of SSANU, Mr Mohammed Ibrahim, said university executives, including vice-chancellors, bursars, and registrars, did not receive salaries for four months.222A 

He said as a result, the universities would remain completely shut down until the payments were made.

He added that the unions reported massive compliance with the ongoing strike across all universities nationwide.

Ibrahim also revealed that there had been no invitation or any form of interference from the government.

He said, “It is a long-term battle because this strike also involves vice-chancellors, bursars, registrars, and other senior administrators who were not paid.

“The impact is significant, and no one from the government has reached out to us. We have withdrawn our services, and our members are resolute they will not return to work until all salaries are paid.”

He added that compliance with the strike was encouraging, achieving 98 per cent adherence.

“We have achieved 98 per cent compliance with the strike; it is a total strike if you look around. The remaining two per cent are those who held their congress today, and they will join fully tomorrow,” he said.

Both Ibrahim and Vice President of SSANU, Abdussobur Salaam, noted that there had been no official response from the government on the strike.

The former Minister of Education, Prof Tahir Mamman, was relieved of his position last week, and a new minister, Dr Tunji Alausa, is expected to take over today, following President Bola Tinubu’s directive that former ministers should hand over by October 30.

Prof Mamman was among the five ministers relieved of their positions by the President after a Federal Executive Council meeting on Monday.

One of the issues facing the substantive minister, Dr Alausa, as he assumes duty today is the SSANU and NASU strike.

Salaam, however, said there had been no official communication from the government regarding the ongoing strike by the union.

“There’s no update on the ongoing strike, it continues. Some informal contacts were made between the minister of state for education and our union executives, but there’s been no real progress, just an informal appeal.

“This issue has persisted for a long time, with repeated promises that have not been fulfilled.

“All our ultimatums have expired, and we still haven’t received any alerts. The recent invitation was just an informal call on the phone. We urge the authorities to take decisive action; we have come too far and can no longer accept empty promises. If we don’t get the alerts we won’t back down, Salaam said.

A statement made available to The PUNCH on Sunday and signed by National President, SSANU, Ibrahim and General Secretary, NASU, Peters Adeyemi, said the ultimatum it gave the Federal Government over its withheld salaries expired on Sunday midnight.

The unions were demanding, among others, the payment of the four-month withheld salaries, improved remuneration, earned allowances and implementation of the 2009 agreements with the government.

Also, the National Association of Academic Technologists, on Wednesday, announced a nationwide protest over the five-month withheld salaries and unfulfilled agreements with the Federal Government.

NAAT also said it would picket the Ministry of Finance on November 14 for the failure to implement the President’s directive that the withheld salaries should be paid.

The protest is expected to commence at midnight on November 6, 2024, with all branches of the union across universities, polytechnics, and colleges of education mobilised to press home their demands.

The President of NAAT, Ibeji Nwokoma, who declared the protest after the union’s National Executive Council meeting in Abuja, also gave the Federal Government a two-week ultimatum starting from October 30, 2024, as a final opportunity to resolve their grievances.

Nwokoma, at the media briefing in Abuja, reeled out a list of long-standing demands that included the payment of five and a half months of withheld salaries and the full implementation of a 2009 agreement with NAAT.

He said the agreement encompassed critical items such as allowances for academic technologists, provisions for student training programmes, and the enhancement of staff-to-student ratios.

It urged the government to, among other things, release funds for upgrading university laboratories and to address the broader issues of underfunding and proliferation of public universities.

Recall that the union had previously issued a three-week ultimatum on September 30, 2024, which expired on October 21.

According to Nwokoma, the ultimatum ended without any acknowledgement from government agencies, including the Federal Ministries of Education and Labour and Employment.

NAAT expressed frustration over what it described as government “insensitivity,” pointing to the President’s recent approval of the withheld salaries that, according to NAAT, had not yet been actioned by the finance ministry.

NAAT’s president announced that, within the two-week window, local branches would convene congresses to conduct a referendum on whether to escalate the protest into a full strike.

It warned that if the government failed to act by November 13, 2024, it would embark on an indefinite strike which would potentially impact academic calendars and critical research activities across the tertiary education system.

The prepared text read, “It is quite unfortunate and regrettable too, that despite the President Bola Ahmed Tinubu’s waiver and approval to pay five-and-half month salaries owed NAAT members, the refusal by the Minister of Finance and Coordinating Minister of the Economy to effect this approval raises more questions than answers on the true commitment and sincerity on the part of the Federal Government in resolving the issues.

“Several efforts were made in the past including a series of letters, protests, visits, notices of ultimatums and several Memorandum of Understanding (MoUs) freely entered between NAAT and Federal Government (i.e MOU of 2017, 2020, 2021 and 2022) as the result of efforts by Federal Ministry of Labour and Employment as conciliator of the Federal Government but all to no avail.

“Consequent upon the above, the union, having reviewed the situation critically, decided to give the Federal Government an additional two (2) weeks ultimatum, with effect from 30th of October 2024.

“Meanwhile, the National Executive Council has directed all her branches in universities, polytechnics and colleges of education to hold a nationwide protest to drive home our demands.

“Within the two-week ultimatum, branches have been directed to hold congresses and conduct a referendum to decide if the union will proceed on strike once the 14-day ultimatum expires on the 13th of November 2024.

“If at the end of the 14-day ultimatum no positive response from the government, the union will embark on a national protest which will culminate into a total and indefinite strike without recourse to government.

“It is hoped that the government will avail itself of this window to resolve the issues on the ground, with the view to averting any industrial action.

“This decision is in line with our concern for the tertiary education system so as not to disrupt the academic calendar which will eventually affect research and practical teaching; laboratory, workshop, farm and studio practices and the attendant monumental loss of resources.”