The House of Representatives has indefinitely suspended the scheduled debate on the Tax Reforms Bills, originally set for Tuesday, following significant pressure from the 19 northern state governors, The Telegraph reports.
The decision to postpone the debate was communicated in a memo signed by the Clerk of the House, Dr. Yahaya Danzaria, after 73 northern lawmakers expressed strong opposition to the bills. These included 48 members from the North-East, 24 from Kano, and Senator Aminu Tambuwal, a former governor of Sokoto State.
The memo, dated November 30, 2024, titled “Rescheduling of Special Session on Tax Reform Bills”, informed members that the special session, initially scheduled for December 3, would be postponed to allow for further consultations with relevant stakeholders. A new date and venue will be communicated in due course.
A leaked video from a closed-door session in the House of Representatives revealed intense discussions, particularly from lawmakers representing the North-East, who voiced concerns about the negative impact of the bills on their regions, which are already struggling with poverty and insurgency. One representative from Borno State stated, “The primary responsibility of government is the welfare of its citizens,” adding that the North-East was the poorest region even before the insurgency.
Tensions also rose in the executive session when North-West lawmakers voiced their skepticism about the bills, citing a lack of conviction from northern governors and the rushed nature of the debate. One lawmaker mentioned that the bills seemed to be advancing too quickly without sufficient consultations, prompting further resistance from regional leaders.
In September 2024, President Bola Tinubu introduced four tax reform bills to the National Assembly, aiming to overhaul Nigeria’s fiscal framework. These included the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.
However, concerns have grown, particularly regarding the Value Added Tax-sharing formula, which has led to objections from northern governors, including those from Kano and Sokoto states.
The northern governors’ opposition has been bolstered by Borno State Governor Babagana Zulum, who criticized the rapid push for the bills. Zulum emphasized the need for careful deliberation, noting that the bills would disproportionately benefit Lagos and potentially exacerbate regional disparities.
Meanwhile, lawmakers from the All Progressives Congress (APC) have been lobbying for the bills, arguing that they would ease the tax burden on the poor and small businesses. They emphasize the need for broader consultations to ensure a more equitable outcome.
In contrast, the pan-Yoruba group Afenifere has expressed support for the bills, seeing them as a necessary step toward economic revival. The Middle Belt Forum and some southern states have also backed the need for more comprehensive consultations before proceeding with the reforms.
As debates continue to unfold, the opposition to the tax reforms highlights the deep regional divisions and concerns over fairness in Nigeria’s economic policies.
