• Tinubu asks NASS to modify bill , Alpha-Beta denies involvement, Obi calls for transparency, citizens’ inputs
From Juliana Taiwo-Obalonye, Ndubuisi Orji, Aidoghie Paulinus, Kenneth Udeh, Charity Nwakaudu, Abuja
AS controversy over the proposed tax reform bills worsens, President
Bola Tinubu has directed the Federal Ministry of Justice and the National Assembly to work on concerns raised.
He spoke, yesterday, even as the bill caused uproar at the House of Representative and stalled proceedings.
Trouble started during plenary when Akin Rotimi was shouted down for making reference to the tax bills while proposing a motion.
The session was proceeding smoothly until the Speaker, Tajudeen Abbas, invited Rotimi to move a motion for the consideration of reports of the House Committee on Nigerian Content Development and Monitoring, on behalf of the Chairman, Boma Goodhead.
The spokesman, while introducing himself, said he is from Ekiti State, the first state to adopt the tax bills. Immediately, members interrupted him with shouts of “No. No. No”
Attempt by the Speaker to intervene further enraged the lawmakers.
President Tinubu recently presented four bills intended to reform tax administration in the country to the National Assembly. The proposed legislations include the Joint Revenue Board of Nigeria (Establishment) Bill, 2024, the Nigeria Revenue Service (Establishment) Bill, 2024, The Nigeria Tax Administration Bill, 2024 -and the Nigeria Tax Bill, 2024. However, the bills have been trailed by controversies with the National Economic Council (NEC) calling for their withdrawal for more consultations. Also, state governors and the Northern Elders Forum (NEF) have equally kicked against the bills.
The Senate, last week, passed the four bills for second reading.
Some critics believe the bills are against the northern region while others argue that they would further impoverish Nigerians.
But to address the concerns, President Tinubu, yesterday, directed the Justice Ministry to look into concerns raised and work with the leadership of the National Assembly to finetune the rough edges in the bills.
Minister of Information and National Orientation, Mohammed Idris, in a statement, said President Tinubu was committed to accountability on tax bills and will always act in the interest of the Nigerian people.
“It is pertinent to state that the government has nothing sinister to warrant the suggestion that the process is being rushed. In line with the established legislative procedure, the Federal General welcomes meaningful inputs that can address whatever grey areas there may be in the bill.
“In this vein, President Tinubu has already directed the Federal Ministry of Justice and relevant officials who worked on the drafts to work closely with the National Assembly to ensure that all genuine concerns have been addressed before the bills are passed.”
According to him, the president is committed to accountability to the Nigerian people and described the debates generated by the bills as welcomed, and commendable.
“It is very inspiring to see Nigerians from all walks of life coming out to express their views and opinions on these matters of critical national importance. This is the very essence and meaning of democracy.
“In the spirit of democratic engagement, there should be no room for name-calling, or for the injection of unnecessary ethnic and regional slurs into this important national conversation.”
The minister dismissed arguments that the bills are targeted at impoverishing some states as “fake news” and “ misinformation.”
“The fiscal reforms will not impoverish any state or region of the country nor will they lead to the scrapping or weakening of any federal agencies,” he insisted.
• Peter Obi, Alpha-Beta Consulting react
Presidential candidate of the Labour Party (LP), Mr Peter Obi and the Alpha-Beta Consulting LLP have also weighed in on the matter.
While the former Anambra State governor called for transparency in the proposed tax reforms, Alpha-Beta denied involvement in the Federal Government’s proposed Tax Reform Bills.
Commenting via his X handle, Mr. Obi said carrying out tax reforms was not bad but that the populace must be carried along while the government should not be the sole beneficiary.
“Tax reform is a critical issue and there is nothing wrong with pursuing it. However, such reforms must be subject to a robust public debate.
“A public hearing on tax reform is essential, allowing Nigerians from all walks of life to engage meaningfully. This is how we build public trust and ensure inclusivity in policy making.
“Matters of this magnitude require extensive deliberations and careful consideration; they should never be rushed. Public hearings must be conducted to allow for diverse opinions and inputs.
“When considering tax reforms and similar issues, it is insufficient to focus solely on the benefits to the government, particularly in terms of increasing revenue collection,” he said.
Obi added that apart from the benefits to government, the overall impacts on the nation and the sustainability of all its component parts must be taken into account.
“Furthermore, the government must sensitise the people and secure their buy-in for any policy change. Trust and legitimacy are the foundations of effective governance; without them, even the best-intended reforms may fail.
“Let us prioritise transparency, deliberations and public engagement in charting the pathway forward. This is how we can build a truly participatory democracy, and a new Nigeria is possible,’’ he said.
Speaking on the matter, Akinsanya Doherty, managing director of Alpha-Beta Consulting LLP in a statement, described claims suggesting involvement of the firm in the proposed Tax Reform Bills as baseless and unfounded with the evil intent of misleading the general public.
The statement read: “As a Managing Director of Alpha-Beta Consulting LLP, I categorically affirm that I have neither met nor had any discussions, dealings, or involvement with Mr. Taiwo Oyedele, Chairman of the Presidential Tax Policy and Fiscal Reform Committee, despite our shared profession.
“Furthermore, neither I nor the firm has made any input into the Federal Government’s tax reform bills. These allegations are false and should be dismissed outrightly.”
The statement was in tandem with Mr. Taiwo Oyedele’s recent clarification during the Town Hall Meeting on the Tax Reform Bills, organized by Channels Television, where Mr. Oyedele explicitly denied plans to outsource federal tax collection to any consulting firm, including Alpha-Beta Consulting LLP.
He, however, emphasized that the reforms were designed to streamline tax administration without reliance on external consultants for its collection.
The Head of Corporate Communications, Kingsley Esonu, declared that the organisation remains steadfast in its commitment to delivering technology-driven innovative solutions that enhance revenue administration and accountability.
The company takes pride in its integrity, professionalism, and unwavering dedication to serving its clients,” he said.
•Senate promises wide engagement
Meanwhile, the Senate has said it would engage in wider consultations before embarking on the public hearing over the bills.
Musa Mohammed Sani, chairman, Joint Committees on Finance and National Planning & Economic Affairs said the tax reform bills are sensitive fiscal documents that should be handled with care even as he said it was the way to go.
“Another aspect which is very sensitive is tax reform. Every country that wants its economy to change will, from time to time, have to look at those parameters to move the country forward.
“I have said it times without number on the floor that tax is not a tool of economic growth, what you will see that will change the face of the economy of any nation is production and it is out of that production that you can make and realise the taxes.
“So, for me, the issue of Tax Reform is before us and we are doing wider consultation.
“It’s not about this region or that region. For me, it’s about Nigeria and what is good for me should also be good for my brothers while what is good for my brothers should also be good for me.
“Nigerians should allow the committee and the National Assembly to do the needful and at the right time, we shall make the right statement about this.”
•Northern coalition kicks
In spite of assurance from the Federal Government, the Coalition of Northern Group has called for the immediate suspension of the proposed Tax reforms Bill.
National Coordinator of the group, Jamilu Aliyu Charanchi, at a press briefing, insisted that the bill will impoverish the north and leave northern states at a disadvantage
“On the whole, the group urgently demands the immediate suspension to allow wider engagement and collect the input of critical stakeholders and the Nigerian citizens in general, towards implementing a more equitable, transparent and sustainable Tax administration reform in our country” he stressed
“While we commend the courageous position of Northern Governors Forum (NGF), National Economic Council (NEC), the Northern council of traditional rulers and some members of the National Assembly who stood firm against this ill-fated policy to strangulate Nigerians, we equally urge other lawmakers to summon the courage and take bold decision against this unpopular policy,” Charanchi added
•CISLAC task NASS
The Civil Society Legislative Advocacy Centre (CISLAC) described Nigeria Tax Bill, 2024, as “a landmark legislative initiative that holds the potential to transform the country’s fiscal framework by consolidating legal provisions, enhancing tax administration, and promoting economic transparency.”
In a statement by the Executive Director of CISLAC, Auwal Musa Rafsanjani, said the Nigeria Tax Bill, 2024, represents a unique opportunity to reposition the nation’s fiscal framework for greater equity and efficiency, assuring of CISLAC’s committed to collaborating with the National Assembly and other stakeholders to ensure the bill delivers on its transformative potential.
Rafsanjani, Head of Transparency International-Nigeria, said the centre has been at the forefront of advocating for fiscal policy reforms that address Nigeria’s socio-economic challenges while promoting transparency and inclusiveness.
The statement read: “However, CISLAC strongly urges the National Assembly and the Executive to critically examine and address key gaps in the bill to ensure that its implementation fosters inclusivity, economic equity, and sustainable governance.” CISLAC identified several critical areas of concern in the bill that require immediate attention. According to Rafsanjani, “The proposed derivation model for VAT revenue distribution risks deepening economic disparities among states. Addressing such systemic inequities requires a constitutional review. To mitigate these challenges, CISLAC advocates for the establishment of an Equalization Fund to support less-developed states in building their human capital and institutional capacity until 2030. Additionally, VAT must be collected at the point of sale rather than remitted to corporate headquarters to enhance transparency and prevent regional disparities in revenue allocation.
“The proposed increase in VAT rates, which are set to double by 2030, raises significant concerns about its impact on inflation and poverty. CISLAC recommends maintaining the current VAT rate of 7.5% until the economy stabilizes, coupled with measures to shield vulnerable populations from price shocks. It is also imperative that the list of VAT exemptions be expanded to include essential items such as cooking energy (LPG and kerosene) and electricity for consumer use, to mitigate the regressive effects of taxation on low-income households.
“To ensure tax incentives are administered equitably, CISLAC emphasizes the need for transparency in their implementation,” the statement continued. “Strengthening the enabling laws of the Nigerian Investment Promotion Commission (NIPC) is critical to preventing misuse and ensuring inclusivity. Furthermore, the bill’s provisions for an effective tax rate on multinationals and high-turnover companies must be backed by clear and enforceable guidelines. Strengthening compliance mechanisms will ensure that large corporations and multinational enterprises contribute their fair share to national revenue.
“Revenue from the Development Levy must be transparently utilized to enhance education and institutional capacity in underserved regions, supporting long-term human capital development,” Rafsanjani stressed. “CISLAC underscores that fiscal policies should aim to bridge socio-economic divides while fostering trust between the government and citizens. Addressing the identified shortcomings in the Nigeria Tax Bill, 2024, is essential to prevent further entrenchment of existing inequalities.
“CISLAC calls on the National Assembly to engage with stakeholders, including civil society organizations, to ensure that the bill reflects the aspirations and needs of all Nigerians…”
The Presidential Committee must provide detailed data on the compliance rates of the current VAT regime and address the challenges hindering effective implementation. State governors should prioritise the creation of sustainable industries to generate employment and revenue for economic revival, while public-private partnerships should be encouraged to drive economic development across all states.
“The Federal Government and state governors must address existing infrastructure gaps, improve citizens’ access to education and healthcare, and ensure that the benefits of taxes are felt by all,” CISLAC concluded. “CISLAC also urges the government to digitize and publish all tax collection processes to curb corruption and enhance transparency. Adequate public consultations with stakeholders and citizens must be observed throughout the legislative process.”