Lawmakers Clash Over President’s Tax Bills, Tensions Rise In

Lawmakers Clash Over President’s Tax Bills, Tensions Rise In National AssemblyMembers of the National Assembly are currently divided over the controversial Tax Reform Bills introduced by the President Bola Tinubu-led administration. On September 3, President Tinubu transmitted four key tax reform bills to the National Assembly for consideration, following recommendations from the Presidential Committee on Fiscal and Tax Reforms, chaired by Taiwo Oyedele, aimed at overhauling Nigeria’s tax system.....KINDLY READ THE FULL STORY HERE▶

The bills include the Nigeria Tax Bill 2024, which seeks to establish a fiscal framework for taxation in the country; the Tax Administration Bill, designed to provide a clear legal framework for tax regulations and reduce disputes; the Nigeria Revenue Service Establishment Bill, which will replace the Federal Inland Revenue Service Act with a new agency, the Nigeria Revenue Service; and the Joint Revenue Board Establishment Bill, which will create a tax tribunal and an ombudsman for resolving tax-related issues.

A major point of contention is the proposed shift to a derivation-based model for the distribution of Value Added Tax (VAT). Under this model, tax revenue would be allocated to the states where goods and services are consumed, rather than being distributed based on the location of company headquarters.

This proposal has met strong opposition from the 19 northern governors and traditional rulers, who have rejected the new VAT distribution model, arguing that the bills do not align with the interests of the northern region or other subnational entities. Similarly, the National Economic Council (NEC), chaired by Vice President Kashim Shettima, recommended that the bills be withdrawn to allow for broader consultations and consensus building.

Though the bills have not yet reached the stage of a second reading in the National Assembly—where their principles would be debated—lawmakers have begun to voice their opinions. Senator Ali Ndume (APC, Borno South) publicly opposed the bills in a television interview, vowing to rally lawmakers from the north to reject them.

Senator Ogoshi Onawo of Nasarawa South Senatorial District also expressed his opposition, criticizing the bills for being insensitive to the economic challenges Nigerians are facing. Onawo argued that imposing additional taxes in such a difficult economic climate would only exacerbate the suffering of the population. He urged President Tinubu to heed the recommendations of the National Economic Council and either withdraw or revise the bills to better reflect the concerns of Nigerians.

“I believe the timing of the bills is wrong, given the economic hardship Nigerians are enduring,” Onawo said. “The bill will only add to the burden on the people. Taxation is a necessary tool if the government is responsive to the needs of its citizens, but when taxpayers don’t see improvements in infrastructure and social services, it becomes unjust.”

The senator added that while taxes can be beneficial, the government must ensure that the collected funds are used to improve the living conditions of citizens. “At present, Nigerians are already burdened with multiple taxes, and these should be streamlined to make life more affordable. We can’t keep taxing people without delivering the basic services they need,” Onawo concluded.

As the debate continues, the fate of the tax reform bills remains uncertain, with lawmakers and regional leaders urging further consultation before any decisions are made.

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