The ongoing debate over the tax reform bills currently before the National Assembly has caused a division among northern senators, with some now voicing support for the proposals despite initial strong resistance from various regions. The tax reforms, including the Joint Revenue Board of Nigeria (Establishment) Bill, 2024, Nigeria Revenue Service (Establishment) Bill, 2024, and Nigeria Tax Bill, 2024, [/b]were presented to the National Assembly by President Bola Tinubu on October 3, 2024, and aim to implement sweeping changes to the nation’s tax system. These bills have sparked heated discussions, especially among northern lawmakers, who initially opposed them due to concerns about their potential negative impact on the region’s economy and overall governance. Initially, many northern lawmakers and governors strongly objected to the bills, calling them anti-democratic and harmful to the economy of the north. The proposed reforms were also criticized for their perceived unfair distribution of tax revenues, with fears that the north would be disproportionately disadvantaged. The National Economic Council, chaired by Vice President Kashim Shettima, called for the withdrawal of the bills to allow for broader consultations and more comprehensive review to accommodate all regions of the country.
One of the most vocal critics of the proposed reforms was Borno State Governor, Prof. Babagana Zulum, who expressed concerns that the bills could "cripple the north's economy" and worsen existing challenges in the region. Similarly, Senators Shehu Buba (APC, Bauchi South) and Ali Ndume (APC, Borno) shared these concerns, urging for the immediate withdrawal of the bills after consulting with northern leaders. Amidst this ongoing debate, the Deputy Senate President, Jibrin Barau, took steps to delay discussions on the bills, directing the Senate Committee on Finance to pause activities related to the bills and engage with the Attorney General of the Federation for further legal advice. However, Senate President Godswill Akpabio countered this direction during Thursday’s plenary session, asserting that the bills had not been withdrawn and that public hearings would proceed as scheduled, despite the opposition.
Despite the strong resistance, support for the bills among northern senators appears to be gradually increasing, with some lawmakers, speaking anonymously, indicating that only a small minority of northern legislators are still adamantly opposed. According to one of the lawmakers, “We are not calling for the suspension of the bills. No doubt, some of our members are calling for the withdrawal of the bills, but they are in the minority. To tell you the truth, those who are calling for the withdrawal are less than 10, and that is me even being modest with the numbers. They are not even up to that.” The lawmaker further emphasized that while there were concerns about the sharing formula for Value Added Tax (VAT) and the potential impact on the north's informal sector, most northern senators were open to finding a solution that would balance the interests of all regions. The lawmaker added, “Many of us in the north are worried about the sharing formula of the VAT. In the north, our economy is more in the informal sector because we deal a lot in agriculture. So, if they are putting VAT by consumption, we will be at the losing end, and those in the cities with a lot of companies will gain so much through the Company Income Tax and others, hence the reason there is a lot of agitation from the north.” However, the lawmaker expressed optimism that a consensus could be reached that would accommodate the concerns of all regions.
In a similar vein, another northern lawmaker confirmed that the northern caucus was not calling for the suspension of the bills, but rather seeking to address certain grey areas through discussion and amendments. The lawmaker emphasized the need for cooperation to ensure the bills are adjusted to fairly represent all regions of Nigeria. “The best we can do is to cooperate and get things sorted out because those calling for the withdrawal are few. If they choose to stage a walkout, the process will continue without them,” the lawmaker stated. He continued by noting that, “It will be unfortunate that the bills will be passed without their input, and the North will be at the receiving end. We are glad that the president has called that we in the Senate should sit with the judiciary to look properly into the controversial clauses.”
The lawmaker also pointed out that while the bills will ultimately be passed, it is likely that amendments will be made to ensure that the concerns of all stakeholders are adequately addressed. He further stated, “The process has begun, and the bills will be passed. I am sure that once the special committee assigned the responsibility meets with the AGF, they will do justice to it, and amendments will be proposed that will accommodate everyone.” Another lawmaker agreed with the sentiment that the call for withdrawal was not reflective of the majority opinion among northern senators, explaining that the focus should be on reviewing the ambiguities within the bills to ensure fairness and legal clarity.
A member of the special committee also expressed the need for thorough vetting of the bills by the Attorney General of the Federation to ensure that there are no constitutional conflicts or oversights by the executive. The member added, “But now is not the time to complain; we will sit with the bills and ensure that the interests of Nigerians are well captured.” Additionally, the spokesperson for the Senate, Yemi Adaramodu, reiterated that the bills are currently under review and that anyone who opposes them could voice their concerns at the upcoming public hearing. He stated, “The bills are before us, and we are doing justice to them. On our own, we can’t just sit and amend bills; let people who feel the bills violated the Constitution come to the public hearing to prove it. It is from the aggregated opinions at the public hearing that we will then take further legislative actions.”
The ongoing public hearings and consultations are expected to shape the final outcome of the bills, as lawmakers from all regions work to ensure the proposed reforms benefit the entire country. As the process continues, it is clear that while there is some level of disagreement, there is also a shared commitment among many senators to address the concerns of all Nigerians and ensure the bills are passed in a fair and transparent manner. The outcome of these deliberations will have a significant impact on the country’s future tax policies and economic landscape.
consultations.
