The presidency has said the tax reform bill before the National Assembly is not targeted at the 19 northern states.

The governors of the 19 Northern states had rejected the bill, especially the proposed amendment to the distribution of Value Added Tax (VAT) to a derivation-based model.

But in a statement, presidential spokesman, Bayo Onanuga, said the new proposal, as enunciated in the bill, is designed to create a fairer system that will benefit all states.

Onanuga, the Special Adviser on Information and Strategy to President Bola Tinubu, stated that the ongoing tax reform seeks to correct the inequity in the current derivation model as a basis for distributing VAT revenue.

“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,” the statement read.

According to Onanuga, the new policy initiatives are aimed at streamlining Nigeria’s tax administration processes, enhancing efficiency and eliminating redundancies across the nation’s tax operations.

He explained that the reforms being proposed are critical to improving the lives of Nigerians and were not put forward by President Tinubu to undermine any part of the country.