The back and forth movement of the President Bola Tinubu government’s Tax Reform Bills at the National Assembly, as well as the division among the 36 governors on the Bills, expose controversies that may alter their smooth passage into law
By Udoka Ekeleme, Abuja
The 36 governors of the federation under the aegis of the Nigeria Governors’ Forun (NGF) may have been divided alongside regional, ethnic and religious lines by President Tinubus Tax Reform Bills currently going back and forth at the National Assembly.
Earlier on, the 19 Northern state governors rejected some sections of the bills whereupon they called for their withdrawal from the National Assembly to allow for further consultations.
Similarly, the National Economic Council (NEC), chaired by the Vice President, Kashim Shettima and composed of the 36 governors and some ministers, also rejected the bills.
On Wednesday night, December 11, 2024 governors engaged in an unusual very short meeting that lasted one hour as they rushed out of the meeting without a communique and refused to address the media which waited impatiently at the entrance of venue of the meeting.
The governors after about one hour of the meeting at Lake Chad Crescent, in Abuja the Secretariat of the NGF, came out with sealed lips without the usual smiles and exchange of banters, except that some walked together in line with states of origin.
The meeting started at 10p.m. and ended at 11p.m. Journalists had expected either a press release on the communique or to be addressed by the Chairman of NGF and Governor of Kwara State, Abdulrahman Abdulrazaq, who would have been flanked by the Chairman of Progressives Governors, Senator Hope Uzodimma.
At the end of the day, the waiting journalists left the place at about 11p.m., as nobody had addressed them.
Tentacle’s checks indicated that the governors who attended the meeting could not reach an official agreement on the controversial tax reform bills.
It was learned that the failure to agree on anything concrete was the reason the NGF could not produce a communique after the meeting or even volunteer comments to the media.
Present at the meeting were 15 governors mostly of the APC, Governors Alex Otti of Abia State and Governor Chukwuma Soludo of Anambra State, governor of Plateau State of the Peoples Democratic Party, PDP, among others were also in attendance.
It was learnt that the governors towed their regional positions on the bill.
Last October 3, 2024, President Tinubu transmitted four tax reform bills to the National Assembly for consideration, following the recommendations of the Presidential Committee on Fiscal and Tax Reforms headed by Taiwo Oyedele for the review of existing tax laws.
The bills include the Nigeria Tax Bill 2024, which is expected to provide the fiscal framework for taxation in the country, and the Tax Administration Bill, which would provide a clear and concise legal framework for all taxes in the country and reduce disputes.
Others were the Nigeria Revenue Service Establishment Bill, which will repeal the Federal Inland Revenue Service Act and establish the Nigeria Revenue Service, and the Joint Revenue Board Establishment Bill, which will create a tax tribunal and a tax ombudsman.
Instructively, the Arewa Consultative Forum (ACF), announced the constitution of a committee to study the tax reform bills and make appropriate recommendations to the Federal Government. The announcement was made on Thursday, December 12, 2024.
In a statement, Tukur Muhammad-Baba, spokesperson of ACF, said the current debates suggest that there were not enough consultations in preparing the bills.
He called on all concerned stakeholders to cooperate with the relevant Senate Committee charged with the assignment to review the content of the bills.
Muhammad-Baba said opposing views against the bills were essential inputs into the policy process, adding that decorum and mutual respect should be honoured in the discussions of provisions of the proposed laws.
On their part, senators from the South East geopolitical zone, under the aegis of the South East Senators’ Forum, also express their support for broader consultations on the Bills. The senators called for more engagement with various groups and stakeholders before the bills would be fully considered and potentially passed by both chambers of the National Assembly.
Speaking on Monday, December 9, 2024 in Abuja after a closed-door meeting with senators from all five South-Eastern states, the leader of the caucus, Senator Enyinnaya Abaribe (APGA, Abia South), clarified that the senators were not actually opposed to the bills, but they were advocating for more consultations on the bills before they move forward in the legislative process.
According to Senator Abaribe, “As much as the entire South East senators are not against the Tax Reform Bills before both chambers of the National Assembly, we want wider consultations to be carried out on them.”
He added that consultations should include engagement with constituents across the 15 Senatorial districts in the zone, as well as with state governments and other key stakeholders. “We have read through the bills and want to share our knowledge with other stakeholders from the South East Zone for a more equitable framework in the bills that will eventually be passed.”
The South East zone, comprising Abia, Anambra, Ebonyi, Enugu, and Imo states, has raised concerns about the bills’ potential impacts and is calling for a more inclusive review process.
