After a prolonged four-month impasse between the House of Representatives and the Presidency concerning the proposed tax reform bills, there are signs of progress as lawmakers gear up to deliberate on the general principles of the legislation. The renewed momentum follows indications that the House is ready to move forward with the discussions in a more transparent and inclusive manner.
On September 3, 2024, President Bola Tinubu submitted four critical tax reform bills to the National Assembly, stemming from recommendations by the Presidential Committee on Fiscal Policy and Tax Reforms, led by Taiwo Oyedele. These bills include:
- The Nigeria Tax Bill 2024 – Establishes a comprehensive fiscal framework for taxation in the country.
- The Tax Administration Bill – Provides a clear legal framework for tax administration, aiming to minimize disputes.
- The Nigeria Revenue Service Establishment Bill – Seeks to repeal the Federal Inland Revenue Service Act and create a new Nigeria Revenue Service.
- The Joint Revenue Board Establishment Bill – Proposes the creation of a tax tribunal and a tax ombudsman to streamline dispute resolution.
However, the proposed reforms met significant resistance from state governors, many of whom expressed concerns over their ability to meet the N70,000 minimum wage if certain provisions, particularly those affecting revenue derivation, were enacted. Prominent northern leaders, including former Vice President Atiku Abubakar, Governors Bala Mohammed (Bauchi) and Babagana Zulum (Borno), and Senator Aminu Tambuwal, criticized the bills, citing potential negative impacts on northern states and calling for broader consultations.
While the Senate managed to pass the bills through the second reading, northern representatives in the House vehemently opposed them, criticizing President Tinubu’s disregard for the National Executive Council’s recommendation to withdraw the bills for further consultation. In a surprising development in January, state governors endorsed a revised Value Added Tax (VAT) formula, proposing a 50% allocation based on equality, 30% on derivation, and 20% on population.
Following this shift, regional and state caucuses convened closed-door meetings at the National Assembly on Tuesday to deliberate on the reforms. These discussions came after plenary proceedings were adjourned in honor of Deputy Chief Whip Adewunmi Onanuga, who passed away on January 15.
A lawmaker present at the meetings disclosed to Hobnob News that Speaker Tajudeen Abbas assured caucus leaders that the legislative process would be transparent when the bills come up for debate. The lawmaker noted a significant change in members’ positions, suggesting that the bills would likely proceed to a second reading by next week, pending the conclusion of caucus meetings.
Speaker Abbas reportedly promised a thorough review of the contentious clauses during public hearings and emphasized the inclusion of zonal and regional caucus leaders in the finance committee to ensure their recommendations were reflected in the final report. “Adjustments will be made at the committee and public hearing levels to accommodate inputs from various stakeholders, including the Nigeria Governors Forum,” the lawmaker added.
Tuesday’s meetings continued the discussions initiated on Monday, attended by key House leaders such as Speaker Abbas, House Leader Julius Ihonvbere, Minority Leader Kingsley Chinda, Deputy Minority Leader Ali Madaki, Deputy Majority Leader Abdullahi Halims, and Deputy Minority Whip George Ozodinobi.
Sources informed Hobnob News that Speaker Abbas convened the meeting to strategize ahead of the second reading. “The Speaker presided over a crucial meeting involving the 10th House leadership and regional caucus leaders to chart a way forward, especially now that the governors have endorsed a revised version of the reforms. Both governors and lawmakers represent the people, and with this new consensus, there’s no need for rigid opposition,” the source explained.
Sada Soli, representing Jibia/Kaita Federal Constituency in Katsina State, emphasized the importance of the caucus meetings in gathering comprehensive views ahead of the bills’ second reading. Similarly, Odianosen Okojie, Chairman of the House Committee on Petroleum Resources (Midstream) and representative of Esan North/South East Federal Constituency in Edo State, confirmed that the tax bills would soon be debated in the Green Chamber.
“We have resolved to support President Tinubu’s tax reform bills, which are designed to benefit the country. We are prepared to back these reforms to ensure their success,” Okojie told Hobnob News.
Lagos lawmaker Babajimi Benson also confirmed the consensus among various caucuses to prioritize national interest and give the bills the attention they deserve. Benson, who represents Ikorodu Federal Constituency, highlighted the inclusive and transparent legislative process agreed upon by the caucuses.
“The state and regional caucuses of the House met to deliberate on the controversial tax bills, resulting in a strong consensus to promote the country’s best interests through broad-based stakeholder engagement and constructive dialogue. We are committed to addressing all stakeholder concerns and ensuring that no interest is overlooked,” Benson stated.
Kolawole Akinlayo, representing Moba/Ilejemeje/Ido Osi Federal Constituency in Ekiti State, confirmed that the House had agreed to pass the amended version of the bills as endorsed by the Nigerian Governors Forum. “By next week, we expect the bills to be passed, God willing,” he said.
As the House of Representatives prepares to reignite debate on these crucial reforms, the collaborative efforts between lawmakers, governors, and stakeholders signal a promising step toward achieving a balanced and effective tax policy for Nigeria.
