The tax reform bills currently under consideration by Nigeria’s National Assembly have sparked significant division within the Senate’s northern caucus. While some senators have thrown their support behind the reforms, others continue to express concerns, calling for further consultations and amendments.
The Controversial Bills
The four executive bills—Joint Revenue Board of Nigeria (Establishment) Bill, Nigeria Revenue Service (Establishment) Bill, Nigeria Tax Bill, and others—aim to implement significant tax reforms and were submitted by President Bola Tinubu on October 3, 2024. These bills have faced criticism, especially from northern governors who deem them “anti-democratic.”
In response to the initial rejection by many northern lawmakers, the National Economic Council advised withdrawing the bills for broader consultations. However, after further interactions with the president’s economic team, the Senate advanced the bills to a second reading and referred them to the Finance Committee for further review.
Northern Senators’ Divided Opinions
Although some northern senators continue to oppose the reforms, others have expressed support, emphasizing that necessary amendments could address regional concerns.
Criticism from Governors
Borno State Governor Babagana Zulum strongly opposed the bills, stating they could cripple the northern economy. His sentiments were echoed by other northern governors who highlighted the region’s reliance on the informal sector and agriculture, which they argue would be disadvantaged by the proposed reforms.
Senators Supporting Amendments
Despite these objections, several senators noted that their primary concern lies with specific provisions of the bills, such as the VAT sharing formula. These lawmakers believe the grey areas can be addressed to ensure fairness and inclusivity for all regions.
One senator remarked:
“We’re not calling for suspension but for amendments that capture the interests of all Nigerians. A consensus can be reached to address concerns about VAT distribution and other contentious areas.”
Another lawmaker added that the Senate must work collaboratively to avoid passing the bills without northern input, which could negatively impact the region.
Special Committee and Stakeholder Engagement
Deputy Senate President Jibrin Barau recently instructed the Finance Committee to pause work on the bills. A special committee was also established to liaise with the Attorney General of the Federation (AGF) and propose solutions. However, Senate President Godswill Akpabio clarified that the public hearing and legislative process for the bills would continue.
Former Kano State Governor Ibrahim Shekarau and the League of Northern Democrats (LND) have set up a technical committee to review the bills thoroughly. This team, comprising experts in law, accounting, and legislation, aims to ensure the reforms benefit all Nigerians equitably.
Governors and Stakeholders Await Amendments
Some governors, including Nasarawa State’s Abdullahi Sule and Adamawa State’s Ahmadu Fintiri, are still reviewing the bills. Their representatives highlighted the need for extensive consultations to address regional disparities.
Maiwada Danmallam, spokesman for Katsina State Governor Dikko Radda, noted that governors would await further clarification on contentious clauses before making final decisions.
Conclusion
The tax reform debate highlights the challenges of balancing regional economic interests within national policies. As discussions continue, stakeholders are hopeful that amendments will address concerns and foster equitable growth across Nigeria.
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