Tax Reform Bills Ignite Tensions As National Assembly Resumes

As the National Assembly reconvenes today, the contentious tax reform bills remain at the forefront of legislative discourse, with northern lawmakers preparing for a heated confrontation should the bills proceed without withdrawal.

Naijaonpoint reports that the legislators have expressed strong reservations, citing concerns about timing, insufficient stakeholder consultations, and the structure of the proposed reforms.

Despite the bills advancing to the second reading in the Senate before the yuletide break, subsequent deliberations were paused to address the growing controversy.

To resolve these issues, the Senate established a committee chaired by Minority Leader Senator Abba Moro (PDP, Benue South) to engage with the Attorney General of the Federation (AGF) for further discussions.

However, President Bola Tinubu remains unwavering in his commitment to the reforms, asserting that they are essential for the nation’s economic progress.

Northern Lawmakers’ Concerns

Northern lawmakers, however, remain adamant that the reforms should be shelved. They argue that the proposals are ill-timed and detrimental to Nigeria’s federal system.

Senator Ali Ndume (APC, Borno South), speaking with the Daily Trust, identified key issues, including: wrong timing, constitutional concerns regarding derivation, opposition to the proposed VAT increase, and lack of proper consultation.

“It’s not against the Northern interest, but against Nigeria’s federal system,” Ndume stated. He criticized the administration’s financial decisions, questioning why borrowing continues despite agencies exceeding revenue targets.

The former Senate Leader criticized the government’s actions, saying, “There is an illegal commitment with the World Bank. Agencies have exceeded revenue targets; what did they do with that money? Why borrow when targets are met?”

Similarly, Bashir Zubairu, representing Birnin Gwari/Giwa Federal Constituency in Kaduna, described the bills as an imposition that unfairly disadvantages the North.

“We will fight the forces behind the plan to impose an unpopular legislation that will be detrimental to millions of Nigerians. It will be a big battle against people who think what they want must be implemented at the expense of others.

“The proponents are trying to do everything to see the bills through including blackmail and other means. They will try to do to us what they did to Senator Abdul Ningi. So, we are calling on our people to support us. We must not be left alone,” he declared.

Other northern lawmakers, including Kabiru Alhassan Rurum (Rano Kibiya/Bunkure Constituency) and Ghali Mustapha Tijjani (Gaya/Ajingi Constituency), voiced their opposition, condemning the reforms as measures that ignore the struggles of ordinary Nigerians.

Mixed Reactions from Other Regions

Not all legislators share the same viewpoint. Senator Enyinnaya Abaribe (APGA, Abia South) suggested that the bills are unlikely to pass in their current form, predicting significant amendments during deliberations.

“I do not see the bill being passed as it is. It will be rejigged,” he said.

Rep Babajimi Benson, representing Ikorodu Federal Constituency in Lagos, dismissed claims of regional bias, emphasizing that the reforms aim to modernize an outdated tax system and promote economic growth.

“This reform is about creating a system where every state thrives based on its economic activities,” Benson said, adding that President Tinubu would not endorse policies harmful to the North.

“The president wants to make the North happy for his re-election,” he added.

Similarly, Rep Gboyega Nasiru Isiaka (Yewa North/Imeko-Afon Constituency) supported the reforms, highlighting their focus on fairness by protecting low- and middle-income earners while ensuring higher earners contribute more equitably.

“The reforms protect low- and middle-income earners while ensuring that those earning more contribute fairly,” he said.