The controversial tax reform bills currently before the National Assembly have sparked significant division among northern senators, though some have now shifted their stance and expressed support for the legislation.
The bills, which include the Joint Revenue Board of Nigeria (Establishment) Bill, 2024, Nigeria Revenue Service (Establishment) Bill, 2024, and Nigeria Tax Bill, 2024, were introduced by President Bola Tinubu in October 2023, with the aim of overhauling Nigeria’s tax system. Initially, the legislation faced strong opposition, especially from northern lawmakers and governors, who argued that the reforms could negatively impact the region’s economy.
The National Economic Council, chaired by Vice President Kashim Shettima, has called for the withdrawal of the bills to allow for more comprehensive consultations. Borno State Governor, Prof. Babagana Zulum, voiced concerns that the reforms could “crumble the north’s economy,” while Senators Shehu Buba (Bauchi South) and Ali Ndume (Borno) also called for the bills’ withdrawal.
Despite these protests, there has been a shift among some northern senators, with a growing number indicating support for the bills, although with calls for adjustments. A senator, speaking anonymously, mentioned that the number of lawmakers still firmly opposing the bills is less than 10. Concerns about the Value Added Tax (VAT) sharing formula, particularly its potential impact on the north’s informal agricultural economy, remain a significant issue. However, many senators believe that a consensus can be reached to accommodate the interests of all regions.
The Deputy Senate President, Jibrin Barau, had earlier instructed the Senate Committee on Finance to suspend work on the bills and consult with the Attorney General of the Federation. However, Senate President Godswill Akpabio countered this directive, emphasizing that the bills had not been withdrawn and public hearings would proceed as planned.
A lawmaker from the northern caucus confirmed that the majority of senators were not calling for a full withdrawal of the bills, but instead wanted to address the “grey areas” of the proposals. He mentioned that the bills would likely pass, but with amendments that would accommodate the concerns of various regions.
Another senator echoed this sentiment, noting that the process would continue despite opposition from a few members. He highlighted that a special committee had been tasked with working alongside the Attorney General to resolve any constitutional issues before the bills are passed.
Yemi Adaramodu, the Senate spokesperson, confirmed that the bills are still being reviewed and emphasized the importance of public hearings, where those with objections to the bills could present their concerns.
Ultimately, while the bills have provoked significant debate, it appears that they will progress through the legislative process, with potential amendments to address the concerns raised, especially from the northern region.
