National Assembly Caucus Meetings Stall Tax Reform Bills Debate

The debate on the contentious tax reform bills currently before the National Assembly has been stalled as lawmakers across various caucuses convene to discuss their positions on the proposed legislation.

The four bills, transmitted by President Bola Tinubu on September 3, 2024, following recommendations from the Taiwo Oyedele-led Presidential Committee on Fiscal and Tax Reforms, have sparked intense deliberations among federal legislators.

The proposals aim to reform Nigeria’s tax laws to ensure clarity, reduce tax evasion, and boost the nation’s revenue base.

Since their introduction, the bills have faced significant opposition. The 36 state governors, led by northern states, rejected the proposals in October, particularly objecting to the revised Value Added Tax (VAT) sharing formula.

Although reports suggest some governors are beginning to shift their stance, others, particularly from the North, remain opposed to the reforms.

A source in the House of Representatives who spoke with Punch disclosed that the proposed VAT sharing formula continues to be a sticking point.

While the bills have advanced to a second reading in the Senate, the House of Representatives has seen greater resistance.

Heated closed-door sessions in the Green Chamber have delayed the legislative process.

In an effort to build consensus, President Tinubu last week instructed the Federal Ministry of Justice to engage with the National Assembly to harmonize perspectives.

A senior Senate officer told Punch that multiple caucus meetings were held on Monday, with lawmakers from various regions and states striving to align their positions before a planned engagement with Attorney General of the Federation (AGF), Lateef Fagbemi.

Asked when the Senate would meet the AGF, the source said, “Not yet. We’ve been meeting to put our positions together.”

The South-East Caucus in the Senate joined the growing call for broader consultations on the bills following a closed-door meeting of senators from the five South-East states in the office of their leader, Senator Enyinnaya Abaribe (APGA, Abia South).

Speaking to journalists after the meeting, Abaribe clarified that while the caucus was not opposed to the proposed tax reforms, it believed more extensive engagement with stakeholders was necessary before the bills were fully considered by both chambers.

He said, “As Senators from the South-East, we are not against the Tax Reform Bills. However, we insist on wider consultations with our constituents across the 15 senatorial districts, state governments, and other critical stakeholders in our zone.”

He added, “We have reviewed the bills and feel it is essential to share our insights with stakeholders in the South-East to ensure the final framework reflects equity and addresses regional concerns. Consultation is vital for inclusiveness and effective legislation.

“Specifically, we need to consult with our constituents across the 15 Senatorial Districts in the zone, with our state governments and other critical stakeholders.”

The Deputy Minority Whip and leader of the Labour Party in the House, George Ozodinobi in a chat with Punch, said, “You know the leadership is managing large numbers in the House, mostly in their 30s and 50s. We adapted consultation amongst caucuses and ourselves to avoid ethnic or religious connotations. We are one indivisible nation. I tell you for free that Mr Speaker is shouldering all these responsibilities and I hope that President will appreciate that.”

Also speaking, another LP lawmaker representing Ogbaru Federal Constituency, Anambra State, Afam Ogene expressed the readiness of the lawmakers to participate in the meeting with the AGF anytime one is convened.

“Whenever they schedule it, we are ready to undertake our legislative duty,” he assured.

Similarly, a member of the House from one of the North-East states said he only read about the presidential directive for the Justice Ministry to interface with lawmakers, adding that a communication to that effect was yet to be made official.

“I read about what the President said concerning a meeting with the Ministry of Justice. Is there any news concerning this meeting? Not yet! The Speaker is yet to read any presidential communication to members in that regard,” he said.

On what might be responsible for the delay, he added, “What I know is that leadership of the House meetings with state caucus leaders were adjourned before the Speaker travelled a week ago with the resolve of reconvening at another date to be announced. That is yet to happen.”