By Ibrahim Aliu
The House of Representatives has indefinitely suspended the debate on the contentious Tax Reform Bills, initially scheduled for discussion on December 3, 2024. This decision follows mounting pressure from the governors of the 19 northern states, who have voiced strong opposition to the proposed legislation, OBSERVERSTIMES.
The suspension was communicated in a memo signed by Dr. Yahaya Danzaria, the Clerk of the House, which cited the need for further consultations with relevant stakeholders as the primary reason for the postponement. The memo stated, “This rescheduling is due to the need for further and broader consultations with all relevant stakeholders. A new date and venue for the session will be communicated in due course.”
The Tax Reform Bills, which include the Nigeria Tax Bill 2024 and the Tax Administration Bill, were transmitted to the National Assembly by President Bola Tinubu following recommendations from the Presidential Committee on Fiscal and Tax Reforms. However, the proposed changes, particularly regarding the Value Added Tax (VAT) sharing formula, have faced significant backlash from northern lawmakers and governors, who argue that the reforms could exacerbate regional disparities and hinder economic growth in the North.
During a closed-door session, 73 northern lawmakers expressed their discontent, with many citing the adverse effects these bills could have on their constituents. Notably, Borno State Governor Babagana Zulum emphasized the urgency for careful consideration, questioning the rapid pace at which the bills are being pushed through the legislative process. “Why the rush? The Petroleum Industry Bill took almost 20 years before it was finally passed. This tax reform bill should be treated with the same level of caution,” he stated.
The Northern Governors Forum has actively mobilized opposition against the bills, instructing federal lawmakers from their states to vote against them. This collective stance reflects deep concerns over the potential negative implications for the northern region, particularly in light of existing economic hardships faced by its citizens.
While some lawmakers from the All Progressives Congress (APC) have been lobbying in support of the tax reforms, the overwhelming sentiment among northern representatives appears to favor a more cautious approach. The Coalition of Northern Groups has also voiced strong opposition, warning that the new VAT regime could further widen the economic gap between the North and South.
Amidst the growing dissent, the APC has urged for understanding, asserting that the bills are designed to stimulate the nation’s fiscal policy framework. However, critics, including former Vice President Atiku Abubakar, have called for transparency and fairness in the review process, emphasizing the need for a fiscal system that promotes equity among Nigeria’s diverse regions.
As the situation continues to evolve, the House of Representatives has committed to further consultations, indicating that the debate on the Tax Reform Bills will remain on hold until a consensus can be reached among all stakeholders involved.
