The controversy trailing the tax reform bills currently before the National Assembly has divided the northern caucus of the Senate as some senators from the North have endorsed the bills, Saturday TheNigerian has learnt.
The development is a complete departure from the situation a few days ago when the majority of northern lawmakers in the Red Chamber rejected the controversial bills.
The bills, comprising the Joint Revenue Board of Nigeria (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024, and Nigeria Tax Bill, 2024, have been at the centre of controversies since their introduction to the National Assembly.
President Bola Tinubu, on October 3, forwarded the four executive bills to the National Assembly for consideration, aiming to implement significant tax reforms.
The northern governors rejected the bills, describing them as anti-democratic.
Following this, the National Economic Council, Nigeria’s highest economic advisory body, requested that they should be withdrawn for more consultations.
However, following the interaction with the president’s economic, team, the Senate passed the bills for a second reading and transmitted them to the Senate Committee on Finance to report back in six weeks.
After the passage of the bills, the Borno State Governor, Prof Babagana Zulum, criticised them in an interview, stating that they would crumble the north’s economy.
Amidst the controversy, Senator Shehu Buba (APC, Bauchi South), in an interview with the British Broadcasting Service, Hausa Service, said northern senators agreed to recall the bills.
Senator Ali Ndume (APC, Borno), buttressing his colleague’s position, had also said the northern senators met with their governors and other leaders and agreed to advise for the withdrawal of the tax reform bills for further consultations and buy-in.
The Deputy Senate President, Jibrin Barau, during Wednesday’s plenary, instructed the Senate Committee on Finance to halt activities related to the bills and constituted a special committee to liaise with the Attorney General of the Federation.
The Senate President, Godswill Akpabio, on Thursday, swiftly discarded Barau’s instruction, emphasising that the bills had neither been withdrawn nor had the public hearing been postponed.
However, despite the earlier position of the northern federal lawmakers, some senators have decided that the tax bills should be given the necessary consideration.
The senators, who spoke on condition of anonymity in order not to incur the wrath of their governors, noted that only a few senators from the north were against the bills.
One source from the north said the majority of his colleagues were not against the bills, adding that what they (northern senators) wanted was for the grey areas to be amended or removed.
Speaking to Saturday TheNigerian, a member of the Northern Senators Forum stated that the lawmakers who were calling for the withdrawal were few.
The lawmaker explained that many others were in support of the bills, particularly because of the positive effect they would have on the country.
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.”
In the same vein, another northern lawmaker stated that the call for the withdrawal of the bills was not the opinion of the majority of the lawmakers from the region.
The senator said they (northern senators) felt some grey areas in the bills needed to be checked and corrected.
Similarly, a member of the special committee explained to Saturday TheNigerian that the bills were supposed to have passed through the Attorney General of the Federation to rectify any issue that might clash with the constitution, adding that the gaps were errors on the part of the executive.
“But now is not the time to complain; we will sit with the bills and ensure that the interests of Nigerians are well captured,” he added.
Spokesman invites opponents, group forms committee
The spokesperson for the Senate, Yemi Adaramodu, said the bills were before the Senate and people with opposing opinions could come to the public hearing to air their views.
He said, “The bills are before us, and we are doing justice to them. On our own, we can’t just sit and amend bills; let people who feel the bills violated the Constitution come to the public hearing to prove it. It is from the aggregated opinions at the public hearing that we will then take further legislative actions.”
Meanwhile, a former Kano State Governor, Senator Ibrahim Shekarau, and some elite members of the League of Northern Democrats on Friday announced that they had set up a technical committee to review the four bills.
The move was revealed in a statement issued in Abuja by the league’s spokesman, Ladan Salihu.
Salihu explained that the position of the LND was taken following the outrage that had continued to trail the introduction of the bills.
The spokesman, who identified the committee members as northern experts in law, accounting, legislation, and academia, stated that they had been given one week to conclude a comprehensive review of the bills.
The statement partly read, “At the conclusion of its assignment, the committee will publicly present its findings in an electronic and tabular format, effectively communicating its recommendations to policymakers, legislators, the media, and the Nigerian public.
“The LND assures the public of our confidence in the committee’s ability to produce thorough and well-reasoned recommendations. These will maximise benefits for all Nigerians, ensuring that the tax reforms support sustainable development and equitable economic growth across the nation.”
‘Why north kicked’
In a related development, the Senior Special Assistant on Public Affairs to Governor Abdullahi Sule of Nasarawa State, Peter Ahemba, said the north observed that the bills would only be favourable to states in the southern part of the country, which was why the region kicked against them.
He noted that the agenda to stop the bills was a collective responsibility for all political players from northern Nigeria.
Ahemba disclosed this while speaking with Saturday TheNigerian in Lafia on Thursday.
He said, “You can see the senators and House of Representatives members from the north speaking with one voice. It is the north speaking in one voice on the matter.
“Also, the stand of the Northern Governors Forum is clear on the matter. They are urging the President to step down the tax reform bills and allow for further consultations.
“They want him to consult widely so that people will see reasons with the bills. For now, the perception is that the bills will only favour some states like Lagos while the north will be shortchanged, and in that regard, the President needs to convince the north about the bills.”
Also, the Director General, Media to Governor Dikko Radda of Katsina State, Maiwada Danmallam, said it was too early for any governor to preempt the bills before the public debate.
“We should wait and see what the new bills will look like before we preempt what will happen. It is too early to say what any governor will do when the debates resume.
“The bills were rejected because of some controversial clauses. So, if the bills are withdrawn by the presidency to address the contentious clauses, we can only wait to see how far the presidency will go in addressing the concerns before saying what governors will or will not do,” he explained.
Fintiri studying bills
Meanwhile, Prof. John Ngamsa, the Special Adviser on Media and Communication Strategy to Adamawa State Governor Ahmadu Fintiri, told Saturday TheNigerian that his principal had not taken a final position on the bills.
Ngamsa said the governor would soon make his position known to the world.
“The governor cannot be against government generating money for development, but he is looking at areas that may have a negative impact on his people and advise the National Assembly to make amends,” he said.
