The ongoing debate surrounding President Bola Tinubu’s proposed tax reform bills has sparked division within the Nigerian House of Representatives, with northern lawmakers expressing concern over the legislation.
While some lawmakers are eager to push the bills forward, leaders from northern Nigeria, including former Kano State Governor Ibrahim Shekarau, are calling for a review of the bills, citing significant concerns that need to be addressed.
The bills in question, which were submitted to the National Assembly in October after receiving approval from the Federal Executive Council, aim to overhaul the country’s tax system and improve revenue generation.
The four key bills—Nigeria Tax Bill 2024, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and Joint Revenue Board (Establishment) Bill—are central to this effort.
At the public presentation of the technical committee’s findings in Abuja, Shekarau, speaking on behalf of the League of Northern Democrats, expressed cautious optimism about the potential of the reforms to boost Nigeria’s economy.
However, he stressed that several provisions within the bills could have negative implications for northern Nigeria and called for a careful review.
“We view the tax reforms as a necessary step toward economic growth, but the concerns of Nigerians, particularly those in the north, must be considered,” Shekarau said.
He pointed out specific sections of the tax proposals, including provisions on inheritance laws and tax exemptions, which he argued might conflict with religious and cultural practices in northern Nigeria.
The LND’s technical committee, led by Bala Ibn Na’Allah, highlighted other concerns related to the informal sector, tax compliance, and the redistribution of resources, suggesting amendments to ensure the reform aligns with the unique economic context of Nigeria’s diverse regions.
Adding fuel to the fire, former Speaker of the House of Representatives, Yakubu Dogara, has criticised northern governors for their rejection of the tax reform bills.
Speaking at a town hall meeting for Christian leaders in northern Nigeria, Dogara lambasted the governors for their failure to effectively manage resources, despite the region’s substantial federal allocations.
“The problem is not the tax reform bills; it is the poor management of resources by our leaders,” Dogara remarked. He pointed out that, despite having held key positions in the federal government for decades, northern Nigeria continues to lag behind in terms of development.
“With the leadership roles we have had over the years, we should not be this backward,” Dogara continued. “The issue is not about federal allocations or appointments; it is about how our resources have been mismanaged.”
Dogara stressed that the region’s underdevelopment cannot be blamed on external factors or the tax reform bills. Instead, he urged northern leaders to take responsibility for their failure to harness the resources available to them for the region’s development.
Reps split over bills
As the debate continues in the House of Representatives, lawmakers are divided over the tax reform proposals. Some southern lawmakers, including Oluwole Oke (PDP, Osun), are confident that the bills will progress to a second reading despite opposition from the North.
Oke expressed optimism that concerns raised by northern lawmakers would be addressed through exemptions and amendments where necessary.
“The tax bills are a done deal,” Oke said. “We will engage with our colleagues from the north and make necessary adjustments to accommodate their concerns.”
In contrast, northern lawmakers, including some from the Northeast, maintain that their position has not changed, arguing that the bills, in their current form, may have negative consequences for the region.
One lawmaker, speaking on condition of anonymity, revealed that a meeting between the Speaker and northern governors earlier this week had failed to sway the region’s stance.
The clash between Dogara’s comments and Shekarau’s call for review underscores the deepening regional divides on the issue of tax reform.
While the North demands that the bills be amended to reflect regional concerns, others argue that the proposed reforms are critical to addressing Nigeria’s economic challenges and improving national revenue.
As the National Assembly continues to review the bills, it remains to be seen whether lawmakers can bridge the gap between regional interests and the need for national economic reforms. Despite the divisions, there is widespread agreement that Nigeria’s tax system needs an overhaul to reflect the realities of the country’s economy and improve its revenue generation capacity.
The passage of these bills will be a key moment in Nigeria’s efforts to modernize its tax system but it will require careful negotiation and compromise to ensure that all stakeholders are heard and that the country can move toward a more sustainable economic future.
