Tax Reform: Northern Senators Split as Stakeholders Form Review Panel
The ongoing debate surrounding the tax reform bills currently before the National Assembly has caused a split within the northern Senate caucus, with some northern senators now expressing support for the legislation, according to FIRST CLASS GISTS.
This marks a shift from the stance taken just days earlier when the majority of northern lawmakers in the Senate had opposed the controversial bills.
The bills in question include the Joint Revenue Board of Nigeria (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024; Nigeria Tax Bill, 2024, and others, which have sparked significant controversy since being introduced in the National Assembly.
On October 3, President Bola Tinubu forwarded these four executive bills to the Senate, aiming to overhaul the country’s tax system.
Northern governors had initially rejected the bills, arguing that they were undemocratic, which prompted the National Economic Council, the country’s primary economic advisory body, to call for their withdrawal pending further consultations.
However, after discussions with the President’s economic team, the Senate moved the bills to a second reading and referred them to the Senate Committee on Finance for further review within six weeks.
Despite this, Borno State Governor, Prof. Babagana Zulum, criticized the bills, warning they could negatively impact the northern economy.
In response to the ongoing debate, Senator Shehu Buba (APC, Bauchi South) told the BBC Hausa Service that northern senators had decided to revisit the bills. Supporting his colleague’s position, Senator Ali Ndume (APC, Borno) confirmed that a meeting with northern governors and leaders had led to a consensus to call for the bills’ suspension for further dialogue.
During a plenary session on Wednesday, Deputy Senate President Jibrin Barau instructed the Senate Committee on Finance to halt progress on the bills and set up a special committee to consult with the Attorney General of the Federation. However, Senate President Godswill Akpabio swiftly dismissed Barau’s directive, emphasizing that the bills had not been withdrawn or postponed.
Despite the initial opposition from northern lawmakers, a number of senators have expressed support for the bills, believing they should proceed with due consideration. Speaking on the condition of anonymity, some senators revealed that only a small minority of their northern colleagues opposed the reforms. One source mentioned that the majority of senators from the North supported the bills, though they wanted certain aspects amended.
A member of the Northern Senators Forum confirmed to Saturday PUNCH that the calls for the bills to be withdrawn were coming from a minority. He further explained that while concerns about the VAT allocation formula and its potential impact on northern economies dominated discussions, they believed that with amendments, a consensus could be reached that would benefit all Nigerians.
Another northern senator echoed similar sentiments, emphasizing that while some colleagues sought the bills’ withdrawal, most senators advocated for amendments to the contentious areas, not a complete suspension. He added that it would be unfortunate for the northern region if the bills passed without their input.
A further clarification from a member of the special committee indicated that the bills were initially meant to undergo review by the Attorney General of the Federation to address constitutional concerns, which were identified as errors by the executive.
The Senate spokesperson, Yemi Adaramodu, invited opponents to voice their concerns during public hearings, ensuring that all opinions would be considered before any legislative decisions were made.
Additionally, former Kano State Governor, Senator Ibrahim Shekarau, along with other members of the League of Northern Democrats (LND), announced the formation of a technical committee tasked with reviewing the bills. This committee, consisting of northern experts from law, accounting, and academia, will submit a comprehensive report within one week, offering recommendations aimed at ensuring the reforms benefit all regions of Nigeria.
Explaining the northern opposition to the bills, Peter Ahemba, Senior Special Assistant to Governor Abdullahi Sule of Nasarawa State, noted that many from the north felt the bills would disproportionately benefit southern states, particularly Lagos. This perception, he argued, led to the region’s resistance to the reforms.
The League of Northern Democrats believes the bills can be improved through dialogue and has committed to ensuring the proposed reforms support equitable growth across the country.
In a related development, a spokesperson for Governor Ahmadu Fintiri of Adamawa State, Prof. John Ngamsa, said the governor has yet to take a final position on the bills but is carefully reviewing them to assess any potential negative impacts on his constituents. The governor’s position will be made public in due course, Ngamsa confirmed.
