Northern Governors kick against tax reforms, heats up National Assembly

The House of Representatives has postponed the planned debate on the Tax Reform Bills that was set for Tuesday due to significant pressure from the 19 northern state governors, according to The PUNCH. The decision to delay the debate was announced in a memo signed by Dr. Yahaya Danzaria, the House Clerk, and follows opposition from 73 lawmakers from the North, including 48 from the North-East, 24 from Kano, and Senator Aminu Tambuwal of Sokoto South.

The memo, dated November 30, 2024, stated that the session was being rescheduled for further consultations with relevant stakeholders and that a new date and location would be shared later. The memo expressed regret for any inconvenience caused.

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A leaked video from a closed-door session showed lawmakers from the North-East passionately opposing the bills, emphasizing the extreme poverty in their region, worsened by insurgency. A representative from Borno stated that the North-East, even before the insurgency, was the poorest region and that many people now rely on aid. He argued that the government’s primary duty is to ensure the welfare of its citizens and called for more consultations.

A North-West lawmaker highlighted that the situation nearly escalated into a confrontation with Deputy Speaker Benjamin Kalu, who chaired the session. The lawmaker noted that the Northern governors remained unconvinced by the arguments for the bills and believed they would harm the region. They were suspicious of the government’s urgency in passing the bills and called for more time to consult with the public.

President Bola Tinubu had sent four tax reform bills to the National Assembly on September 3, 2024, following recommendations from the Presidential Committee on Fiscal and Tax Reforms led by Taiwo Oyedele. These bills include the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.

On October 29, 2024, the Northern Governors Forum opposed the bills, particularly the VAT-sharing plan, urging their lawmakers to vote against them. The National Economic Council, chaired by Vice President Kashim Shettima, recommended withdrawing the bills to allow for more stakeholder consultations, but President Tinubu refused.

Last week, the House spent over two hours in an executive session discussing the bills but ultimately decided to postpone the debate to allow for more consultations. The decision followed remarks by Borno State Governor Babagana Zulum, who questioned the speed of the legislative process for the bills and warned they would negatively impact the North and other regions.

Zulum, who later clarified he was not opposed to President Tinubu’s administration, argued that the tax reforms would disproportionately benefit Lagos, with other regions, including the North, South-East, and parts of the South-West, facing disadvantages. He called for more time and deeper consultations to evaluate the bills thoroughly before proceeding.

He emphasized that his stance was not anti-president but a plea for democratic consultation and consideration of the impacts of the reforms. Zulum’s position reflected his long support for Tinubu and urged that a rushed decision would not serve the broader interests of all stakeholders.

Source: PUNCH