How Governors’ Support for Tax Bills Prevented a Tinubu-Shettima Rift, Sources Reveal

It is thought that a tense relationship between President Bola Tinubu and Vice President Kashim Shettima, which was reportedly on the verge of developing into a full-blown fallout, was avoided when the 36 state governors endorsed the tax reform bills that President Tinubu brought before the National Assembly.

According to sources close to the presidency, the initial rejection of the bills by the governors had created tension between Tinubu and Shettima.

It is understood that the open involvement of Borno State Governor Babagana Zulum in a media campaign against the bills was seen as a direct challenge to the president.

Zulum had said that the bills are likely to have devastating consequences for the Northern region.

The Northern governor added that only Lagos State would gain if the legislation were signed into law.

At first, the governors had rejected the measures because they believed that Lagos State, which receives more than half of the nation’s VAT revenue, would unfairly benefit from the proposed 60% derivation concept. However, the derivation principle was cut to 30% in the governors’ approved revision.

He scowled at how quickly the bills were moving through the legislature.

“What’s the rush? It took nearly two decades for the Petroleum Industry Bill to be passed. But this tax reform bill is being transmitted and receiving legislative attention within a week. It should be treated carefully and with caution so that even after our exit, our children will reap its benefits,” Zulum had said.

It should be noted that the National Economic Council (NEC), chaired by Vice President Shettima, had in 2024 rejected the bills.

Tinubu’s kitchen cabinet is understood to have considered Zulum’s action an affront to the president.

Although the president and his close allies did not publicly respond to Zulum’s criticisms, sources at the presidential villa reportedly revealed that the governor’s actions caused tension between the president and the vice president.

“Nigerians know the relationship between the Borno State governor and vice president just as they know the relationship between the Lagos State governor and the president. The voice of the governor of Lagos State might be taken for that of the president, who is his political godfather.

Read Also: CBN to Open New Accounts for 774 Councils Under LG Autonomy Initiative

“It’s in the same way Zulum’s action could be seen as signifying Shettima’s position on any issue, rightly or wrongly. 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.