The House of Representatives has indefinitely suspended its debate on the Tax Reforms Bills, previously scheduled for Tuesday, due to mounting opposition from governors of the 19 northern states. The decision follows objections from 73 northern lawmakers, including 48 representatives from the North-East and 24 federal legislators from Kano State.

The suspension was conveyed in a memo by Dr. Yahaya Danzaria, Clerk of the House, citing the need for broader consultations with stakeholders. The memo stated, “The special session initially scheduled for Tuesday, December 3, 2024, has been postponed to a later date due to the need for further consultations.”

Resistance from Northern Lawmakers and Governors

A closed-door session of the Green Chamber revealed intense debates among North-East legislators who argued against the bills. A representative from Borno State highlighted the severe economic challenges facing the region, saying, “North-East, even before the insurgency, was the poorest region in Nigeria. Today, billionaires of yesterday queue in IDP camps for aid. We need further consultations because nothing is cast in stone.”

The Northern Governors Forum had earlier directed federal lawmakers to reject the bills, particularly opposing the Value Added Tax (VAT) sharing template. Governor Babagana Zulum of Borno criticized the speed of the legislative process, likening it unfavorably to the Petroleum Industry Bill, which took nearly two decades to pass.

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Zulum remarked, “Why the rush? This bill will destroy the North entirely. We call on President Tinubu to review this decision. He secured 60% of his votes from the North. The North must be consulted before any decision is made.”

Tax Reforms Under Debate

The four bills, introduced by President Bola Tinubu on September 3, 2024, include:

  1. Nigeria Tax Bill 2024: Establishes a fiscal framework for taxation.
  2. Tax Administration Bill: Creates a clear legal framework for taxes and reduces disputes.
  3. Nigeria Revenue Service Establishment Bill: Replaces the Federal Inland Revenue Service Act with a new revenue service.
  4. Joint Revenue Board Establishment Bill: Introduces a tax tribunal and ombudsman.

Critics argue that the reforms disproportionately favor Lagos State, potentially disadvantaging other regions. Zulum and other northern leaders contend that the proposals need more extensive deliberation to avoid deepening regional inequalities.

APC Lawmakers Rally Support

Despite widespread opposition, some APC lawmakers, including Philip Agbese and Babajimi Benson, have been lobbying for the bills. Agbese stated, “These tax bills intend to relieve poor people and small companies of their burdens.” Benson added, “We see the merits in the bills, and we are lobbying for their acceptance.”

Opposition from Other Regions

Senator Aminu Tambuwal of Sokoto South criticized the timing of the reforms, citing the economic hardship caused by fuel subsidy removal and naira devaluation. Similarly, Kano State legislators unanimously rejected the bills during a caucus meeting, emphasizing their potential to exacerbate poverty.

Looking Ahead

The debate’s suspension reflects significant discontent within the House and among regional stakeholders. The National Assembly now faces the challenge of balancing President Tinubu’s reform agenda with the concerns of governors and lawmakers across Nigeria. Further consultations are expected to determine the future of the tax reform bills.