GistReel

The contentious tax reform bills currently before the National Assembly have sparked division among northern senators, with some lawmakers now backing the proposals despite initial widespread resistance.

The bills, including the Joint Revenue Board of Nigeria (Establishment) Bill, 2024, Nigeria Revenue Service (Establishment) Bill, 2024, and Nigeria Tax Bill, 2024, propose sweeping tax reforms and were submitted to the National Assembly by President Bola Tinubu on October 3.

Initially, northern lawmakers and governors strongly opposed the bills, labeling them anti-democratic and harmful to the region’s economy.

The National Economic Council, chaired by Vice President Kashim Shettima, called for the withdrawal of the bills to allow for broader consultations.

Borno State Governor, Prof. Babagana Zulum, criticized the proposals, warning in an interview that they could “cripple the north’s economy.”

Similarly, Senator Shehu Buba (APC, Bauchi South) and Senator Ali Ndume (APC, Borno) echoed the governors’ concerns, urging the withdrawal of the bills after discussions with northern leaders.

Amid the debate, Deputy Senate President Jibrin Barau directed the Senate Committee on Finance to pause activities related to the bills and consult with the Attorney General of the Federation.

However, Senate President Godswill Akpabio countered this directive, asserting during Thursday’s plenary session that the bills had not been withdrawn and public hearings were still on schedule.

Despite the earlier opposition, support for the bills among northern senators appears to be growing. A senator, speaking anonymously to Punch, disclosed that only a small number of lawmakers from the region remain steadfast in their opposition.

He said, “We are not calling for the suspension of the bills. No doubt, some of our members are calling for the withdrawal of the bills, but they are in the minority. To tell you the truth, those who are calling for the withdrawal are less than 10 and that is me even being modest with the numbers. They are not even up to that.

“However, many of us in the north are worried about the sharing formula of the VAT. In the north, our economy is more in the informal sector because we deal a lot in agriculture.

“So, if they are putting VAT by consumption, we will be at the losing end and those in the cities with a lot of companies will gain so much through the Company Income Tax and others, hence the reason there is a lot of agitation from the north.

“But I believe a consensus can be reached; we will capture all interests and come up with what will work for Nigerians.”

Another lawmaker, from the northern caucus confirmed that they were not calling for the suspension of the bills, but rather ironing of the grey areas.

“The best we can do is to cooperate and get things sorted out because those calling for the withdrawal are few. If they choose to stage a walkout, the process will continue without them.

“It will be unfortunate that the bills will be passed without their input, and the North will be at the receiving end. We are glad that the president has called that we in the Senate should sit with the judiciary to look properly into the controversial clauses,” the senator said.

The lawmaker noted that the bills would be passed but with amendments that would accommodate everybody.

He added, “The process has begun, and the bills will be passed. I am sure that once the special committee assigned the responsibility meets with the AGF, they will do justice to it, and amendments will be proposed that will accommodate everyone.”

Similarly, another northern lawmaker clarified that the call for the withdrawal of the bills did not reflect the majority opinion among lawmakers from the region. The senator noted that northern senators believed certain ambiguities in the bills needed to be reviewed and addressed.

A member of the special committee also told Saturday PUNCH that the bills should have been vetted by the Attorney General of the Federation to resolve any potential constitutional conflicts. The member attributed the identified gaps to oversights by the executive.