The House of Representatives has indefinitely suspended its scheduled debate on President Bola Ahmed Tinubu’s tax reform bills following opposition from the Northern Governors Forum and lawmakers representing the region.
Postponement Announced via Memo
A memo signed by the Clerk of the House, Dr. Yahaya Danzaria, on November 30, 2024, titled “Rescheduling of Special Session on Tax Reform Bills,” communicated the postponement. It stated the delay was necessary for broader consultations with stakeholders.
The session was initially slated for December 3, 2024, to deliberate on four tax reform bills transmitted to the National Assembly on September 3 by President Tinubu.
Opposition to the Tax Bills
Lawmakers from the North, including 48 representatives from the North-East, 24 from Kano State, and Senator Aminu Tambuwal of Sokoto South Senatorial District, strongly opposed the bills. The opposition focuses on the Value Added Tax (VAT) sharing template, which critics argue disproportionately benefits Lagos State.
At an October meeting in Kaduna, the Northern Governors Forum directed their state lawmakers to vote against the bills. On October 29, the National Economic Council (NEC), led by Vice President Kashim Shettima, advised the federal government to withdraw the bills for further consultations, a suggestion President Tinubu declined.
Details of the Tax Reform Bills
The four bills proposed by the President are:
- Nigeria Tax Bill 2024: Establishes a fiscal framework for taxation in Nigeria.
- Tax Administration Bill: Provides a legal framework to streamline tax disputes.
- Nigeria Revenue Service Establishment Bill: Replaces the Federal Inland Revenue Service Act and establishes the Nigeria Revenue Service.
- Joint Revenue Board Establishment Bill: Creates a tax tribunal and ombudsman.
Governor Zulum Leads Criticism
Borno State Governor Babagana Zulum, a key critic, has voiced concerns about the bills’ potential to disadvantage most regions. Speaking to BBC, he questioned the speed of legislative action, comparing it to the protracted debate over the Petroleum Industry Bill. He stressed that rushing the tax reforms could harm the North and other regions.
In a subsequent interview, Zulum clarified his position, saying:
- “This is not opposition but a call for caution and deeper consultation. Only Lagos stands to benefit from these reforms, while other regions, including parts of the South-West, will suffer losses.”
Zulum also highlighted the critical role the North played in Tinubu’s election, urging the President to review the bills to avoid alienating his northern base.
Other Northern Leaders Oppose the Reforms
Senator Aminu Tambuwal and lawmakers from Kano State also criticized the timing and substance of the bills, citing Nigeria’s current economic challenges. Tambuwal called for policies that alleviate, rather than exacerbate, the burden on citizens already struggling with inflation and subsidy removal.
APC Lawmakers Lobby for Support
Despite the opposition, some All Progressives Congress (APC) lawmakers, including Philip Agbese (Benue) and Babajimi Benson (Lagos), are rallying support for the bills. Benson emphasized that contentious aspects need negotiation but expressed confidence in the proposed reforms’ transformative potential.
Broader Concerns
The Coalition of Northern Groups (CNG), Gombe State chapter, warned that the reforms could deepen regional economic disparities and cause unrest. They criticized the lack of sufficient data and transparency in justifying the proposed changes.
Next Steps
The House leadership has promised to announce a new date for the debate after concluding consultations. For now, the fate of Tinubu’s tax reforms hangs in the balance as negotiations with stakeholders continue.
