Tax Reform Bill: Tinubu Steps In Following Mixed Reactions

Following the controversy trailing the Tax Reforms Bills, President Bola Tinubu has directed the Ministry of Justice to work closely with the National Assembly to address the concerns raised by Nigerians.

The President, who is in South Africa, handed down the review order on Tuesday as some northern youths stormed the National Assembly in support of the bills.

The bills – the Nigeria Tax Bill 2024, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill – have generated hot debates and contention across the country with northern governors and lawmakers opposed to their passage.

Critics argue that the reforms could disrupt the balance of fiscal federalism, potentially centralising tax authority and diminishing state revenues.

However, in a move to assuage the high emotion over the reform bills, Tinubu directed the Federal Ministry of Justice and relevant officials who worked on the draft to collaborate with the National Assembly to address all genuine concerns before the bills were passed.

This was contained in a statement signed by the Minister of Information and National Orientation, Mohammed Idris, titled, ‘President Tinubu committed to accountability on tax bills, directs Ministry of Justice to work with NASS on concerns.’

Tinubu’s directive

The minister said, “In line with the established legislative procedure, the Federal General welcomes meaningful inputs that can address whatever grey areas there may be in the bill.

“In this vein, President Tinubu has already directed the Federal Ministry of Justice and relevant officials who worked on the drafts to work closely with the National Assembly to ensure that all genuine concerns have been addressed before the bills are passed.”

Notably, at a meeting on October 28, governors of the 19 Northern States, under the platform of the Northern Governors’ Forum, rejected the new derivation-based model for Value-Added Tax distribution in the tax reform bills.

They argued that the changes might adversely affect their regions’ financial autonomy.

Three days later, the National Economic Council, comprising all 36 state governors, asked the President to withdraw the Tax Reforms Bill from the National Assembly for comprehensive consultations.

However, the President said there would be no need to withdraw the bill from the National Assembly.

Governor Babagana Zulum of Borno State warned that while the President could deploy his executive powers to pass the tax bills, there would be consequences for millions of Nigerians.

Zulum added that the proposed VAT-sharing model will only benefit Lagos and Rivers states.

But Governor of Nasarawa State, Abdullahi Sule, former Speaker of the House of Representatives, Yakubu Dogara, and many other northern leaders endorsed the bills.

Nonetheless, the Senate passed the bills for a second reading, a move that has been met with harsh criticisms.

In its statement on Monday, the Presidency said most reactions from political leaders and commentators “are not grounded in facts, reality, or sufficient knowledge of the bills.”

It said the tax bills will not enrich Lagos or Rivers at the expense of northern states.

Corroborating the Presidency’s stance, the information minister said, “The fiscal reforms will not impoverish any state or region of the country, neither will they lead to the scrapping or weakening of any federal agencies.”

The Federal Government welcomed the nationwide debate on the bills saying, “This is the very essence and meaning of democracy.”

Protest in NASS

Meanwhile, Some youths from the North, on Tuesday, staged a protest at the National Assembly in support of the tax reform bills.

Bearing placards mostly with the inscription, ‘Leave Senator Barau alone,’ the protesting youths described critics of the Deputy Senate President, Barau Jibrin, over his support for the reform bills as “enemies of the North, enemies of progress, enemies of the nation.”

Speaking on behalf of the protesters, Tijani Mohammed, said they were satisfied with the explanations offered by the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, on the benefits of the bill to the nation at large.

Mohammed urged President Bola Tinubu, the Senate President, Godswill Akpabio; Senator Barau Jibrin and others not to relent until the passage into law of the tax bills.

He said, “The tax reform bills are in order and Nigerians should work towards her perfection and progress. For so long, we have lived on a decadence of tax reforms that have not produced anything good or meaningful to this nation.

“We are from the North; we are categorically in support of this tax reform bill. To those who have for the past few days castigated Senator Jibrin Barau, they are nothing but enemies of the North, enemies of Nigeria, enemies of our generation, enemies of progress, and supporters of retrogression.

“We call on Nigerians, as we have vowed that we shall continue to voice from one state to the other, one region to the other, we shall canvass, and this bill, by the grace of God, shall see the light of the day.

“The man who is in charge of the tax review came out to list the intents of the bill. What people were listing before are personal things like whether Alpha and Beta Consultants will be the consultants of the entire project.”

He added, “What we are looking at is, what comes to the states. And the man has said, if formerly you have five per cent, with this reform bill, you should be able to have between 15 and 20 per cent. That is progress. We cannot continue to stand stagnant for decades.

“We pray that the President will not relent, the President of the Senate supported by the Deputy Senate President, Senator Jibrin Barau must ensure that this bill is looked into properly and see that it is passed.

“It is a germane issue; it is overdue; it is something that Nigerians should look forward to to make progress. We cannot continue to stand stagnant. This is our generation. The generation of those who have led this country, in the past, have failed us. This present generation is in support of the reforms.” he said.

Prominent Islamic scholar, Sheikh Ahmad Gumi, also on Tuesday expressed his support for President Tinubu’s tax reform bills, describing it as a step towards improving Nigeria’s economic landscape.

Sheikh Gumi’s approval of the reforms marks a notable shift from the ongoing debate.

“I believe the contentious VAT issue is the only part that needs to be reviewed; otherwise, it is a good package for all,” Gumi stated.

His remarks highlighted a key point of contention in the reforms, which some northern leaders argue might favour wealthier states like Lagos and Rivers at the expense of poorer regions.

Rowdy House session

In a demonstration of the sensitive nature of the bill, there was a rowdy session during the House of Representatives plenary on Tuesday following the declaration of support for the tax reform bills by the spokesman of the Green Chamber, Akin Rotimi.

Rotimi, a member of the All Progressives Congress incurred the wrath of his colleagues when he stood up to present two reports on behalf of the Committee on Nigerian Content Development and Monitoring.

After getting Speaker Tajudeen Abbas’ nod to present the reports, Rotimi announced the stand of Ekiti federal lawmakers on the controversial four tax bills transmitted to the parliament on September 3.

He began, “Thank you very much, Mr Speaker. My name is Akin Rotimi Jr. I represent the people of Ekiti North 1 comprising Ikole and Oye Local Governments. Mr Speaker, I am from Ekiti State, the first State whose National Assembly caucus has unanimously endorsed the tax bills. I rise on behalf of Hon Boma Goodhead (Committee chairman who was absent)…”

But the House members did not allow him to complete his sentence as they chanted “No, no.”

Repeated appeals by the speaker to restore order failed as the members vowed that the report would not be laid.

The Speaker waded in, saying, “He (Rotimi) is expressing his personal opinion,” just as the Ekiti lawmaker reminded his colleagues that he had the protection of the presiding officer.

Also, Abbas’ plea that Rotimi shouldn’t be taken seriously because “he was just talking on a lighter note,” failed to calm frayed nerves.

Rotimi then added, “My introduction does not affect the substantive matter,” just as the Speaker urged him to restrict himself “To the person you are representing here. We are not talking about tax bills.”

The lawmaker finally gave in, saying, “Honourable colleagues, I withdraw the introduction. Mr Speaker, I withdraw the introduction. I will introduce myself properly. Mr Speaker, can I have the opportunity to speak?”

Abbas thereafter took over, saying, “Mr Rotimi, you know this (tax bill) is a controversial issue. I don’t want you to be mentioning things that are not relevant to the subject matter. On your behalf, I withdraw that statement that you have made.”

With a semblance of order in place, Rotimi again stood up and said, “Honourable colleagues, I would like to withdraw that introduction and restrict myself to the Order Paper.”

The Speaker asked for a seconder but the members failed to listen as the protest continued.

“I beg you. This has nothing to do with the tax bills,” Abbas pleaded repeatedly, all to no avail.

Rotimi took to the floor once again.

“I seek the leave of the Speaker and honourable members to step down the report,” he said.

Like Rotimi, the deputy spokesman of the House, Philip Agbese, also had his dose of trouble when Kano lawmaker, Tijjani Ghali, standing on a matter of personal explanation (Order 6 rule 5), called on him to resign from his position.

“I woke up this morning to see an online publication from the deputy spokesman, saying that those opposed to tax reform bills are seeking speedy passage. I am one of the first persons that opposed these bills vehemently but the deputy spokesperson did not contact me as a stakeholder and did not seek my opinion on this.

“The headline is insinuating that for those who opposed these tax bills, there is an inducement somewhere. Therefore, I am calling for the withdrawal of this statement and an investigation and apology in print media because this is injurious to me, my people, my religion and the region where I come from.

“Mr Speaker, this is a breach of privilege and is unprofessional, unethical and immoral. Therefore, I am personally calling for this matter to be investigated to find out those people opposed to the bills that are now asking for their speedy passage,” he stated.

The member representing Jibia/Kaita Federal Constituency, Katsina State, Sada Soli, moved that the matter be referred to the Ethics and Privileges Committee for investigation.

Ruling on the matter, Deputy Speaker, Benjamin Kalu, promised action, stating “Once a point of privilege is moved, it is not debated. You have asked for this to be investigated. But you did not tell whether to move it to ethics and privileges and that is why Sada Soli came with his own. It is not in your prayer. There are many ways to investigate this.”

Kukah backs bill

Meanwhile, the Catholic Bishop of Sokoto Diocese, Bishop Hassan Kukah, has said that the proposed tax reform bills would end the recklessness of the elite in the country.

The clergyman commented on Channels Television Morning Brief on Tuesday.

Kukah expressed hope that the bills would mark the beginning of better fiscal management and end financial recklessness, noting that any form of reform must get the country working.

“Nigeria is a very energetic country with people that are so eminently gifted and are roaring to soar at any time. However, our problem is the inability of states to create enough gatherings to contain the energy, vision, and competing narratives of their citizens. This lack of competitive gatherings often spills over into violence.

“So, I am excited because hopefully, we can take the time to listen to the conversation about how to avoid and end this financial recklessness, and the irony of Nigerians living by the seaside and washing their faces with saliva.

“The reforms should end the narrative of Nigerians living in a country that is so richly endowed but are spectators to the rascality and irresponsibility of the elites who continue to mismanage our resources.

“So, I’m hopeful that this is the beginning of a very long journey of fiscal management and efficiency that can lead to the growth and development of the kind of country that we envision,” he said.

In support of the bills, the Ekiti State Caucus in the National Assembly called on stakeholders, including state governments, private sector leaders, civil society and citizens to also endorse the tax reform bills.

The caucus said the tax reforms “are a testament to the bold and transformative agenda of President Bola Tinubu, which has prioritised economic growth, inclusivity, and national prosperity.”

The nine All Progressives Congress lawmakers from Ekiti State in the National Assembly – Senators Opeyemi Bamidele, Yemi Adaramodu and Cyril Fasuyi; and House of Representatives members Olufemi Bamisile, Olusola Fatoba, Bioduun Omoleye, Rufus Ojuawo, Akinlayo Kolawole and Akin Rotimi, spoke in a jointly signed statement made available in Ado Ekiti on Tuesday.

The caucus stated, “These bills aim to strengthen Nigeria’s revenue generation system, ensuring sustainable funding for critical sectors such as education, healthcare, infrastructure, and social welfare.

“Additionally, these reforms will simplify the tax system, foster local entrepreneurship, attract investment and create employment opportunities, driving economic growth across the state and the nation.

“The establishment of the Tax Appeal Tribunal and the Office of the Tax Ombudsman will further entrench transparency, accountability and fairness in tax administration, protecting taxpayers’ rights and fostering trust in the system.

“As representatives of Ekiti State, we remain resolute in our support for initiatives that prioritise economic growth and enhance the welfare of our people. These reforms underscore our collective commitment to a better future and we urge all Nigerians to embrace this bold step toward national development.”

The Labour Party Senator representing Edo South in the Senate, Neda Imasuen, described the tax reform bills as timely and long overdue.

Imasuen, who serves as the Chairman, Senate Committee on Ethics, Privileges, and Public Petitions, called for patience and a better understanding of the proposed reforms.

He criticised state governors, describing them as complacent and urged them to explore alternative means of generating revenue.

In its contribution to the debate, the Arewa Dignity Advancement Initiative, called on the National Assembly to reject the bills, citing the widespread criticisms and opposition to them.

The group stated this in a document jointly signed by its members comprising individuals from academia, professionals, civil society organisations, students, traditional and religious leaders, and other stakeholders.

The group, chaired by Baheejah Mahmood Abdullahi from Bauchi State, stated, “Introducing additional taxation, particularly on personal income and value-added tax, is ill-timed and could exacerbate economic hardship.

“The bill was drafted without adequate input from professionals and the general public. As a key democratic institution, the National Assembly must ensure that inclusive decision-making processes are upheld.”

It pointed out that the proposed redistribution formula, “which allocates 60 per cent VAT ownership to states based on consumption location, contradicts existing laws that emphasised revenue distribution based on equality and population rather than consumption location.”

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