The House of Representatives may soon reignite debates over the contentious tax reform bills currently before the National Assembly. This development follows the resolve of the Southern Caucus of the Green Chamber, comprising lawmakers from 17 states, to subject the proposed legislation to meticulous legislative scrutiny.
In a meeting held on Tuesday at the Asokoro, Abuja residence of Deputy Speaker Benjamin Kalu, prominent members of the caucus, including House Majority Leader Julius Ihonvbere, Minority Leader Kingsley Chinda, and other influential lawmakers, reaffirmed their commitment to engaging in open dialogue. The gathering reflects increasing political activity surrounding the four tax reform bills transmitted by President Bola Tinubu, following recommendations from the Presidential Committee on Fiscal and Tax Reforms, chaired by Taiwo Oyedele.
The Four Proposed Tax Bills
The bills, aimed at overhauling Nigeria’s tax landscape, include:
- Nigeria Tax Bill 2024: A framework to consolidate taxation laws.
- Tax Administration Bill: Providing clarity and consistency for tax administration.
- Nigeria Revenue Service Establishment Bill: Repealing the Federal Inland Revenue Service Act to establish the Nigeria Revenue Service.
- Joint Revenue Board Establishment Bill: Establishing a tax tribunal and ombudsman for dispute resolution.
Despite the bills’ promise to modernize Nigeria’s tax system, they have sparked controversy. Lawmakers, particularly from the North, have voiced strong opposition, citing potential inequities and concerns about the rushed legislative timeline.
Northern Lawmakers and Governors Push Back
Two weeks ago, a heated executive session saw significant resistance from 48 North-East lawmakers, led by Ahmad Jaha of the Damboa/Gwoza/Chibok Federal Constituency in Borno State. Jaha criticized the proposed reforms, citing the region’s economic challenges exacerbated by insurgency. “The North-East, even before the insurgency, was the poorest region. Today, our people live as beggars in IDP camps,” Jaha lamented in a viral video.
Similarly, 24 lawmakers from Kano State echoed these sentiments, urging the withdrawal of the bills. Their stance aligns with notable voices like former Vice President Atiku Abubakar, who called for broader public input to ensure fairness and transparency in the reform process.
Borno State Governor Babagana Zulum also raised concerns, questioning the urgency behind the legislative process. “The Petroleum Industry Bill took nearly 20 years to pass. Why the rush with these tax reforms?” Zulum argued, emphasizing the need for caution.
Southern Caucus Pushes for Dialogue
In contrast, the Southern Caucus of the House has expressed readiness to engage in constructive debates. Speaking on behalf of the group, Nicholas Mutu of the Bomadi/Patani Federal Constituency, Delta State, emphasized the caucus’s openness to scrutinize the bills.
“The Southern Caucus welcomes these bills with enthusiasm and is committed to fulfilling its legislative responsibilities,” Mutu stated.
Frederick Agbedi of the Sagbama/Ekeremor Federal Constituency, Bayelsa State, dismissed notions of a North-South divide, asserting that the National Assembly’s mandate transcends regional biases. Agbedi underscored the importance of stakeholder input, highlighting ongoing consultations with constituents and states.
Similarly, Lagos lawmaker Babajimi Benson acknowledged the controversies surrounding the bills but emphasized the need for unity. “No national bill is without its challenges. Our job is to find a middle ground that serves the country’s best interests,” Benson noted.
Path Forward: Lobbying and Consensus Building
With the Southern Caucus signaling support for the bills, negotiations with opposing lawmakers are expected to intensify. Kolawole Akinlayo, an All Progressives Congress member from Ekiti State, expressed optimism about the bills’ eventual passage.
“These bills are transformative for Nigeria’s fiscal future. Our focus now is on lobbying and convincing skeptics of their merits,” Akinlayo said.
Balancing Reform and Equity
As deliberations resume, the House faces the daunting task of reconciling divergent perspectives. While proponents highlight the bills’ potential to streamline tax processes and bolster revenue, critics caution against exacerbating existing regional disparities.
The coming weeks will determine whether lawmakers can navigate the complexities of the reform process to deliver a tax system that promotes fairness, transparency, and sustainable development.
