- Some Northern Senators Back Tax Reforms Despite Governors’ Opposition
- Technical Committees and Consultations Aim to Address Regional Concerns
The controversy surrounding the tax reform bills currently before the National Assembly has created divisions within the northern caucus of the Senate. While a faction of northern senators continues to oppose the bills, citing potential harm to the region’s economy, others have expressed support for their passage, with amendments to address contentious areas.
The four executive bills—the Joint Revenue Board of Nigeria (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024; Nigeria Tax Bill, 2024, among others—were submitted by President Bola Ahmed Tinubu on October 3, 2024, as part of his administration’s efforts to implement significant tax reforms.
Northern Governors Reject Bills
Northern governors and some lawmakers have criticized the bills, describing them as unfavorable to the region. Borno State Governor Prof. Babagana Zulum argued that the reforms could collapse the North’s economy, which relies heavily on informal sectors such as agriculture. Similarly, the Northern Governors Forum urged the President to withdraw the bills for further consultation.
The National Economic Council echoed these concerns and called for the bills to be temporarily withdrawn to allow broader input from stakeholders.
Senate Debate and Internal Division
Despite initial opposition, the Senate recently passed the bills for a second reading and forwarded them to the Committee on Finance for further review. Deputy Senate President Jibrin Barau instructed a temporary halt to activities on the bills pending consultations with the Attorney General of the Federation. However, Senate President Godswill Akpabio overruled the directive, insisting the legislative process must proceed.
Some senators from the northern caucus, including Senator Shehu Buba (APC, Bauchi South) and Senator Ali Ndume (APC, Borno), supported calls for withdrawal, emphasizing the need for more consultation. Yet, other northern lawmakers have distanced themselves from this position, stating that only a minority opposes the bills.
One northern senator, speaking anonymously, clarified that their focus was on addressing “grey areas,” particularly around VAT sharing formulas and provisions that could disproportionately impact the North.
Support for Amendments
Despite the opposition, many senators see the bills as necessary for Nigeria’s economic development. They have called for amendments to ensure fair treatment for all regions. “The process has begun, and the bills will be passed, but with modifications that accommodate everyone,” a northern senator stated.
Another lawmaker added, “Only a few of us are against these reforms outright. Most of us agree that the bills can be improved through dialogue and thoughtful amendments.”
Independent Reviews Underway
In response to the controversy, the League of Northern Democrats (LND), led by former Kano State Governor Ibrahim Shekarau, has set up a technical committee to review the bills. The committee, comprising experts in law, accounting, and public policy, is expected to provide recommendations within a week.
Governors and Public Reactions
While northern governors have largely opposed the bills, some remain open to dialogue. Adamawa State Governor Ahmadu Fintiri is reportedly studying the bills and will announce his position soon. Katsina State Governor Dikko Radda has urged patience, emphasizing that governors should not preempt the outcome of public debates.
Path Forward
The Senate has invited stakeholders with differing views to present their arguments during public hearings. The spokesperson for the Senate, Yemi Adaramodu, emphasized that the legislative process would remain transparent, and all opinions would be considered.
The unfolding debate highlights the challenge of balancing national economic reforms with regional concerns, as lawmakers and stakeholders work to reach a consensus that serves the broader interests of Nigerians.
