Tax Reform: Reps Set For Fresh Debate, Hold Closed-door Sessions

After four months of a stand-off between the House of Representatives and the Presidency over the tax bills transmitted to the National Assembly by President Bola Tinubu, the House is set to debate the general principles of the proposed legislation.
President Bola Tinubu transmitted four tax reform bills to the National Assembly for consideration on September 3, 2024.
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 will give a clear and concise legal framework for all taxes in the country and reduce disputes.
Others are 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.
The reform initiatives, however, faced stiff opposition from state governors, some of whom argued that they might find it difficult to pay the N70,000 minimum wage if the derivate component of the proposed bill sees the light of the day.
Prominent northerners, including former Vice President Atiku Abubakar; Governors Bala Mohammed and Babagana Zulum of Bauchi and Borno States, respectively, as well as Senator Aminu Tambuwal, openly voiced their opposition to the bills and called for broader consultations on some of the clauses deemed inimical to the interest of northern Nigerians.
Although the general principles of the bills were debated and passed for second reading in the Senate, members of the House of Representatives of northern extraction kicked against what they termed the failure of President Tinubu to heed the counsel of the National Executive Council, which sought the withdrawal of the bills for further consultation.
In a dramatic twist, however, the governors in January endorsed a revised VAT formula that proposed 50 per cent allocation based on equality, 30 per cent based on derivation, and 20 per cent on population.
On Tuesday shortly after the National Assembly adjourned plenary proceedings in honour of Deputy Chief Whip, Adewunmi Onanuga, who died January 15, members of some regional and state caucuses met at different venues in the House wing of the assembly complex to deliberate on the proposed reforms.
A lawmaker who witnessed the proceedings told The PUNCH that the Speaker, Tajudeen Abbas, assured the caucus leaders of transparent legislative processing of the bills when they come up for debate.
The lawmaker said, “Certainly, members have shifted position on the matter, I think not later than next week, we will debate the bills. I think the bills would now be allowed to pass for a second reading. This will happen as soon as the regional caucus meetings are concluded.”
On what transpired at the meeting, the lawmaker stated that Abbas “Assured all that the contentious clauses would be reviewed holistically at the public hearing.
“It was further agreed that zonal and regional caucus leaders would be part of the finance committee to monitor public hearings to ensure that all the recommendations reached at the zonal and regional caucuses meetings were incorporated in the committee’s report.”
He also hinted that the bills would be subjected to adjustments to allow for the incorporation of input from different stakeholders.
“Adjustments will be made at committee/public hearing level to accommodate recommendations made by the caucuses, Nigeria Governors Forum and other stakeholders,” he added.
Tuesday’s meeting was a continuation of the interface, which began on Monday at the National Assembly Complex, Abuja.
It was gathered that Monday’s meeting was attended by Speaker Abbas, House Leader, Julius Ihonvbere; Minority Leader, Kingsley Chinda; Deputy Minority Leader, Ali Madaki; Deputy Majority Leader, Abdullahi Halims and Deputy Minority Whip, George Ozodinobi.
A source privy to the development said that the meeting was called by Abbas ahead of the second reading of the bills.
“The Speaker presided over the meeting. At the gathering were the leadership of the 10th House and regional, zonal and state caucus leaders.
“On the tax bills, we deliberated on the way forward because now that the governors have endorsed a reversed version of the reforms; what is the way forward? Governors and lawmakers are the representatives of the people. So, if the governors are now seeing the matter differently, there is no need for us to be rigid on this matter.”
The House member representing Jibia/Kaita Federal Constituency, Katsina State, Sada Soli, emphasised the importance of the various caucus meetings ahead of the second reading of the bills.
“We are to get aggregate views from the meetings,” Soli said.
Also speaking, the Chairman, House Committee on Petroleum Resources (Midstream), Odianosen Okojie, said the tax bills would be listed for debate on the floor of the Green Chamber “anytime from now.”
The lawmaker, who represents Esan North/South East Federal Constituency, Edo State, said, “We have resolved to support Mr President’s tax reform bills, which of course, would be presented for second reading anytime from now.
“Like I said before, the bills are reforms that mean well for this country. Thus, we are prepared and ready to support Mr President to succeed.”
Confirming the meetings, Lagos lawmaker, Babajimi Benson, said there’s now a consensus among the various caucuses to put the country first and give the bills the attention they deserve.
Benson, who represents Ikorodu Federal Constituency, said, “The various state and regional caucuses of the House of Representatives met to deliberate on the controversial tax bills. The meeting resulted in a strong consensus to promote the best interests of the country through an inclusive and transparent legislative process.
“The caucuses agreed on the need to ensure active stakeholder participation at all stages, fostering broad-based input and constructive dialogue. There was also a firm commitment to addressing the concerns of all stakeholders sufficiently, with mechanisms to ensure that no interest is overlooked.
“In recognition of the diverse interests across the country, zonal and regional caucus leaders will be actively involved in all processes related to the tax bills to guarantee that regional perspectives are adequately represented. Above all, the House remains dedicated to building and maintaining the trust and confidence of Nigerians by upholding the principles of fairness, equity, and accountability in all its legislative activities.”
Similarly, the member representing Moba/Ilejemeje/Ido Osi Federal Constituency, Ekiti State, Kolawole Akinlayo, said the House had resolved to pass the amended version of the bills endorsed by the state governors.
“We agreed to pass the bills as amended by the Nigerian Governors Forum. I believe by next week, the bill should be passed by God’s grace,” he said.