The controversy surrounding the proposed Tax Reform Bills intensified on Thursday as senators from Nigeria’s northern states expressed divergent views during plenary.
Debates on the bills, introduced to overhaul the nation’s outdated tax system, revealed sharp divisions among lawmakers. Senate Leader Opeyemi Bamidele initiated discussions, but the session quickly turned contentious.
Disputed Timing Senator Ali Ndume (Borno South) raised concerns about the timing of the bills, advocating for broader consultations with stakeholders before moving forward. Although Ndume clarified that he was not entirely opposed to the bills, he questioned whether the Senate had adequately engaged the public and stakeholders.
“Many of us will not agree to it as is, so why not negotiate first before bringing the bills?” Ndume argued. He also highlighted concerns about the bills’ potential to shift VAT burdens from wealthy individuals to low-income earners, effectively nullifying any intended relief.
Support for the Bills Ndume’s objections were countered by Senator Mohammed Monguno (Borno North), who supported the reform efforts. Monguno dismissed Ndume’s stance as purely academic and urged dissenters to wait for the public hearing stage to present their positions.
Deputy Senate President Jibrin Barau (Kano North), who presided over Wednesday’s plenary, rebuffed Ndume’s procedural objections against the Presidential Tax Reform Committee’s appearance in the Senate chamber. Barau advised Ndume to cease his “rhetorics” and allow the committee to address lawmakers. This led to a heated exchange, with Ndume demanding an apology from Barau, who subsequently ruled him out of order.
Northern Senators Convene Following the plenary, northern senators convened under the aegis of the Northern Senators’ Forum. While the meeting’s agenda was undisclosed, sources revealed that it focused on the tax reform bills. However, the lawmakers reportedly failed to reach a unified stance.
A source hinted that northern senators, backed by governors from the region, might collaborate to block the bills at critical stages. The northern bloc holds a numerical advantage in the Senate, with 57 members compared to the southern states’ 51 senators and one representing the Federal Capital Territory (FCT).
Aiming to Modernize Tax Laws The Tax Reform Bills, submitted by President Tinubu on October 30, 2024, seek to modernize Nigeria’s tax system, which largely operates under laws enacted in 1939. Chairman of the Presidential Fiscal Policy and Tax Reform Committee, Taiwo Oyedele, described the current framework as obsolete, asserting that a comprehensive overhaul is necessary to align Nigeria’s tax system with global standards.
The Senate’s President, Godswill Akpabio, expressed optimism that the bills would address issues like multiple taxation across government tiers. He referred the matter to the Finance Committee for further review, with a directive to report back within six weeks.
