Politics

Governors’ Backing of Tax Bills Staved Off Potential Tinubu-Shettima Fallout, Sources Say

A tense relationship between President Bola Tinubu and Vice President Kashim Shettima is said to have been on the verge of becoming a full-blown fallout, but it was reportedly prevented by the 36 state governors’ support of the tax reform bills that Tinubu brought before the National Assembly.

The governors’ initial rejection of the proposals had caused friction between Tinubu and Shettima, according to people close to the presidency.

The governor of Borno State, Babagana Zulum, publicly participated in a media campaign opposing the laws, which was perceived as a direct threat to the president.

The bills, according to Zulum, are probably going to have disastrous effects on the Northern area.

Additionally, the Northern governor stated that Lagos State would be the sole beneficiary if the proposals were to become law.

The measures were first opposed by the governors because they believed that Lagos State, which receives more than half of the nation’s VAT revenue, would be unfairly favored under the proposed 60% derivation concept. Nevertheless, the derivation principle was cut to 30% in the governors’ approved change.

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How quickly the bills moved through the legislature made him scowl.

Why the haste? Almost two decades elapsed before the Petroleum Industry Bill was eventually passed. However, within a week, this tax reform plan will be delivered and discussed by lawmakers. Zulum had stated, “It should be handled carefully and cautiously so that our children will benefit even after we leave.”

Noteworthy is the fact that the legislation were opposed in 2024 by the National Economic Council (NEC), which was presided over by Vice President Shettima.

According to reports, Tinubu’s kitchen cabinet felt that Zulum’s move was disrespectful to the president.

Zulum’s complaints were not publicly addressed by the president or his close associates, but sources at the presidential villa said that the governor’s actions strained relations between the president and the vice president.

Nigerians are familiar with the relationship between the governor of Lagos State and the president, as well as the relationship between the governor of Borno State and the vice president. The president, who is his political godfather, may be mistaken for the governor of Lagos State.

The same is true of Zulum’s conduct, which may be interpreted as expressing Shettima’s stance on any matter, whether correct or incorrect. So people may not be too wrong if they say it’s a case of Esau’s hand, Jacob’s voice,” a presidential source said.

“That was why the governors, on the platform of the Nigeria Governors Forum, had to review their initial position on the bills and endorse an amended version of the documents,” the source added.

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