Northern Senators At Odds Over Proposed Tax Reform Legislation

Northern Senators At Odds Over Proposed Tax Reform LegislationThe controversial tax reform bills currently before the National Assembly have created a division among northern senators, with some lawmakers now expressing support for the legislation, despite initial widespread opposition. These bills, including the Joint Revenue Board of Nigeria (Establishment) Bill, 2024, Nigeria Revenue Service (Establishment) Bill, 2024, and Nigeria Tax Bill, 2024, aim to overhaul Nigeria’s tax system and were introduced by President Bola Tinubu on October 3.....KINDLY READ THE FULL STORY HERE▶

Initially, the bills faced strong resistance from northern lawmakers and governors, who argued that they could harm the region’s economy and undermine democratic principles. The National Economic Council, chaired by Vice President Kashim Shettima, called for the bills to be withdrawn to allow for further consultations with stakeholders.

Borno State Governor, Prof. Babagana Zulum, was one of the most vocal critics, warning that the bills could “crumble the north’s economy.” Senators Shehu Buba (APC, Bauchi South) and Ali Ndume (APC, Borno) also pushed for the withdrawal of the bills, citing concerns raised by northern governors and political leaders. In response to the controversy, Deputy Senate President Jibrin Barau instructed the Senate Committee on Finance to halt progress on the bills and consult with the Attorney General of the Federation.

However, Senate President Godswill Akpabio countered Barau’s directive, stating during a plenary session that the bills had not been withdrawn, and public hearings were still scheduled.

In a notable shift, some northern senators are now backing the bills, with only a small minority remaining firmly opposed. One senator, speaking on condition of anonymity, revealed that fewer than 10 northern lawmakers are still calling for the bills to be withdrawn, while many others are focused on addressing concerns over the allocation of Value Added Tax (VAT). The senator explained that northern economies, which are largely informal and agriculturally based, could suffer if VAT is tied to consumption, while urban areas with more corporate activity might benefit more from corporate taxes.

“There is a consensus building among us,” the senator added. “We’re concerned about VAT, but we believe that with proper discussions, we can reach an agreement that accommodates all interests and works for Nigeria.”

Another lawmaker from the northern caucus echoed similar sentiments, stating that while the calls for withdrawal are minimal, there is a desire to resolve key issues in the bills. “If those calling for the withdrawal choose to walk out, the process will continue without them,” he noted. “It would be unfortunate if the bills are passed without their input, but we are optimistic that with the president’s support, we will find a way to address all concerns.”

The lawmaker further confirmed that the bills would eventually be passed, but likely with amendments to ensure fairness for all regions. “Once the special committee works with the AGF, we’ll propose necessary amendments to reflect the interests of all Nigerians.”

Other northern lawmakers have also expressed that the calls for withdrawal do not represent the majority opinion of the region. They pointed out that the focus should be on addressing the “grey areas” in the bills, which they believe can be resolved through proper consultation and amendment.

A member of the special committee on the bills explained that the bills were supposed to undergo thorough scrutiny by the Attorney General to identify any constitutional issues. While acknowledging some errors in the executive’s handling of the bills, the lawmaker emphasized that it is not the time to complain but to collaborate on necessary adjustments.

The Senate spokesperson, Yemi Adaramodu, affirmed that the bills are under review, and those with opposing views are encouraged to present their concerns during the public hearings. “We are giving everyone the opportunity to express their opinions,” Adaramodu said. “Once we hear from all parties, we will take the appropriate legislative action.

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