Northern Senators Divided Over Controversial Tax Reform Bills

The controversial tax reform bills before the National Assembly have caused a rift among northern senators, with some lawmakers now endorsing the legislation despite initial widespread opposition.

The bills, which include the Joint Revenue Board of Nigeria (Establishment) Bill, 2024, Nigeria Revenue Service (Establishment) Bill, 2024, and Nigeria Tax Bill, 2024, aim to introduce significant tax reforms and were forwarded to the National Assembly by President Bola Tinubu on October 3.

The bills were met with strong resistance from northern lawmakers and governors, who described them as anti-democratic and likely to harm the region’s economy.

The National Economic Council, led by Vice President Kashim Shettima, called for the withdrawal of the bills to allow for further consultations.

Borno State Governor, Prof Babagana Zulum, criticized the bills, stating in an interview that they would “crumble the north’s economy.”

Similarly, Senator Shehu Buba (APC, Bauchi South) and Senator Ali Ndume (APC, Borno) called for the withdrawal of the bills, citing discussions with northern governors and leaders.

Amid the controversy, Deputy Senate President Jibrin Barau instructed the Senate Committee on Finance to halt activities related to the bills and engage with the Attorney General of the Federation.

However, Senate President Godswill Akpabio countered the directive, stating during Thursday’s plenary that the bills had not been withdrawn and public hearings had not been postponed.

Despite earlier opposition, some northern senators have begun supporting the bills. Speaking to Punch on the condition of anonymity, a senator revealed that only a few lawmakers from the north remain firmly opposed.

He said, “We are not calling for the suspension of the bills. No doubt, some of our members are calling for the withdrawal of the bills, but they are in the minority. To tell you the truth, those who are calling for the withdrawal are less than 10 and that is me even being modest with the numbers. They are not even up to that.

“However, many of us in the north are worried about the sharing formula of the VAT. In the north, our economy is more in the informal sector because we deal a lot in agriculture.

“So, if they are putting VAT by consumption, we will be at the losing end and those in the cities with a lot of companies will gain so much through the Company Income Tax and others, hence the reason there is a lot of agitation from the north.

“But I believe a consensus can be reached; we will capture all interests and come up with what will work for Nigerians.”

Another lawmaker, from the northern caucus confirmed that they were not calling for the suspension of the bills, but rather ironing of the grey areas.

“The best we can do is to cooperate and get things sorted out because those calling for the withdrawal are few. If they choose to stage a walkout, the process will continue without them.

“It will be unfortunate that the bills will be passed without their input, and the North will be at the receiving end. We are glad that the president has called that we in the Senate should sit with the judiciary to look properly into the controversial clauses,” the senator said.

The lawmaker noted that the bills would be passed but with amendments that would accommodate everybody.

He added, “The process has begun, and the bills will be passed. I am sure that once the special committee assigned the responsibility meets with the AGF, they will do justice to it, and amendments will be proposed that will accommodate everyone.”

In the same vein, another northern lawmaker stated that the call for the withdrawal of the bills was not the opinion of the majority of the lawmakers from the region.

The senator said they (northern senators) felt some grey areas in the bills needed to be checked and corrected.

Similarly, a member of the special committee explained to Saturday PUNCH that the bills were supposed to have passed through the Attorney General of the Federation to rectify any issue that might clash with the constitution, adding that the gaps were errors on the part of the executive.

“But now is not the time to complain; we will sit with the bills and ensure that the interests of Nigerians are well captured,” he added.

The spokesperson for the Senate, Yemi Adaramodu, said the bills were before the Senate and people with opposing opinions could come to the public hearing to air their views.

He said, “The bills are before us, and we are doing justice to them. On our own, we can’t just sit and amend bills; let people who feel the bills violated the Constitution come to the public hearing to prove it. It is from the aggregated opinions at the public hearing that we will then take further legislative actions.”