The Federal Government’s proposed tax reform bills, spearheaded by President Bola Tinubu, have sparked significant controversy, with opposition from the Peoples Democratic Party (PDP), Labour Party, northern lawmakers, and governors.
The contentious bills—Nigeria Tax Bill 2024, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and Joint Revenue Board (Establishment) Bill—aim to overhaul Nigeria’s tax framework by consolidating existing tax laws and introducing entities like the Tax Appeal Tribunal and the Office of the Tax Ombudsman. Approved by the Federal Executive Council in October, the bills are now under consideration in the National Assembly.
Opposition Raises Concerns Over Speed and Impact
The PDP has questioned the urgency behind the accelerated legislative process. Ibrahim Abdullahi, the party’s Deputy National Publicity Secretary, criticized the timing, arguing that the reforms might exacerbate the economic hardship faced by Nigerians.
“With inflation and harsh policies already affecting citizens, rushing these bills raises suspicions about the government’s intentions,” Abdullahi said.
Timothy Osadolor, the PDP’s Deputy National Youth Leader, warned against authoritarian tactics, urging broader consultations to avoid what he described as a “Nazi-style” approach to democracy.
Labour Party’s Peter Obi, a 2023 presidential candidate, also voiced his concerns.
“Reforms must be subject to robust public debate,” Obi tweeted, stressing the importance of transparency and inclusivity in policymaking.
The party’s Secretary, Umar Farouk, outrightly rejected the reforms, citing concerns over fairness and their potential adverse effects on northern states and low-income citizens.
Northern Lawmakers and Governors Oppose Reforms
The proposed reforms have faced total opposition from some northern lawmakers, who argue that the bills disproportionately burden the economically challenged northern region.
Tijjani Ghali, a New Nigeria People’s Party (NNPP) lawmaker, backed the Northern Governors Forum in rejecting the bills, stating that they could worsen existing regional disparities.
In contrast, southern lawmakers offered a more measured approach. Babajimi Benson (APC) called for further negotiations, while Oluwole Oke advocated for public hearings to address contentious issues and build consensus.
Legislative Process and Assurances
Despite the backlash, Senate Committee Chairman Seriake Dickson has assured that the legislative process will be thorough, including public hearings to incorporate stakeholder input. He defended the reforms as an opportunity to rectify tax imbalances, particularly in how resources are allocated among states.
“The bills present a chance to address tax anomalies and ensure fair distribution of resources,” Dickson stated.
Stakeholders Demand Meaningful Dialogue
As consultations continue, there is a growing consensus among stakeholders that meaningful dialogue and public engagement are critical to ensuring the reforms achieve their objectives without causing unintended harm.
While the government aims to modernize Nigeria’s tax system and enhance revenue generation, the opposition stresses the need for policies that are equitable, transparent, and inclusive, particularly in light of the current economic challenges.
