- Debate Suspended as Governors Demand Broader Consultation
- Critics Allege Bias in Proposed VAT Sharing Formula
- Zulum Warns: “Tax Bills Could Set North Backward”
The House of Representatives has indefinitely suspended debate on President Bola Tinubu’s proposed Tax Reform Bills following significant pushback from northern governors and lawmakers. A memo signed by the Clerk of the House, Dr. Yahaya Danzaria, announced the decision, citing the need for “broader consultations with stakeholders.”
This comes as 73 northern lawmakers, including 48 from the North-East, 24 from Kano, and ex-Governor of Sokoto State, Senator Aminu Tambuwal, rejected the bills. Governor Babagana Zulum of Borno State voiced concerns, warning that the reforms could deepen economic disparities and harm northern states already grappling with poverty and insecurity.
The bills, developed by the Presidential Committee on Fiscal and Tax Reforms, aim to overhaul Nigeria’s tax framework. However, critics argue the proposed VAT-sharing formula disproportionately benefits Lagos State while disadvantaging other regions, including parts of the Southeast and South-South.
During an executive session, tensions flared among lawmakers, with northern representatives questioning the urgency of the bills. Zulum likened the rush to a potential political misstep, emphasizing the need for a more inclusive process.
Despite opposition, groups like Afenifere and the APC have defended the reforms, describing them as vital for economic revival. Meanwhile, calls for public hearings and expert scrutiny have grown louder as the debate remains on hold.
With mounting regional opposition, the fate of the tax reforms hangs in the balance as consultations continue.
