Some northern lawmakers in the House of Representatives on Saturday said that the sudden endorsement by the Nigeria Governors Forum of the reversed Value-Added Tax sharing formula in the proposed tax bills is likely to be subjected to amendment by the federal lawmakers before passage.
Recall that in 2024, President Bola Tinubu transmitted four tax bills to the National Assembly for consideration and passage, following the recommendations of the Presidential Taskforce on Fiscal Policy and Tax Reforms headed by Taiwo Oyedele.
The proposed bills are the Nigeria Tax Bill 2024, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.
However, the bills sparked diverse opinions across the country with northern leaders opposed to its passage over the Value Added Tax provisions.
On October 29, the Northern Governors Forum opposed the proposed tax amendment bills.
Two days later, the National Economic Council advised Tinubu to promptly withdraw the tax bills from the parliament to make room for broader consultations and consensus-building.
Although they enjoyed relative success at the Senate where they were debated; the bills faced stiff opposition in the House of Representatives as over 70 lawmakers of Northern extraction frustrated mAoves for the debate of the general principles of the four executive bills.
Northern leaders, particularly, former Vice President, Atiku Abubakar, Governor Bala Mohammed of Bauchi State and his Borno State counterpart, Babagana Zulum were a few of the leading critics, who argued that the proposed reforms were capable of endangering the northern economy, particularly the VAT derivate component.
Last week, the President had his way following a breakthrough at a meeting between the Nigeria Governors Forum and the Oyedele-led committee.
At the meeting, the 36 governors proposed that the VAT revenue should be shared 50 per cent based on equality, 30 per cent on derivation and 20 per cent based on population to guarantee a fair distribution of resources.
Speaking exclusively with The PUNCH, the lawmaker representing Jibia/Kaita Federal Constituency, Katsina State, Mr Sada Soli expressed the readiness of the House to support the governors, adding however the bills are likely to face fresh amendments when the general principles are debated on the floor of the Green Chamber.
He said, “We go with the position of the NGF because we are both representing the people. However, that may not preclude us from going further to amend the bills where necessary in the interest of the country. Those who drafted the bills made several fundamental drafting errors that need to be corrected. Given the realities that confronted the bills, it’s only obvious the National Assembly would do a thorough scrutiny on them.”
Responding to a question from our correspondent on whether the Northern House of Representatives caucus has met over the bills, a Peoples Democratic Party lawmaker from Niger State, Joshua Gana said no such meeting has taken place, adding that the House is currently mourning the recent death of one of its leaders.
“We are mourning the death of our leader and colleague, the Deputy Whip, Hon Adewunmi Onanuga. We will resume budget defence proceedings with Ministries, Department and Agencies from Monday Jan 20, 2025,” he said.
He however noted that “Caucuses are free to meet and deliberate on it until we reconvene at plenary session on Tuesday, January 28, 2025 to debate on it. It would still go to public hearing in our legislative processes and many things can still change and be identified for amendments.”
That said, Gana noted that though the NGF has taken a position, the lawmakers are at liberty to take a stand they believe would be in the nation’s best interest.
“The position of the governors is not sacrosanct but a step in a positive direction to accommodate all the nuances to bring about the best for Nigeria and Nigerians at this time moving forward,” he added.
On his part, the member representing Kwande/Ushongo Federal Constituency, Terseer Ugbor echoed Gana’s position, saying, “We haven’t met,” an indication that the northern caucus is yet to take a firm stand on the governors’ sudden support for the bills.
In a separate interview with our correspondent, a North-Eastern lawmaker who does not want his name in print because he’s not mandated to speak for the caucus said, “It (meeting of the caucus) is too early. The NGF resolution came last week. The House is not on plenary. The meeting of caucuses is not likely until plenary resumes.”
ACF studies proposals
Meanwhile, the Arewa Consultative Forum has begun studying the tax reform proposals agreed upon by state governors, with a promise to provide specific recommendations within the next 48 hours.
According to ACF National Publicity Secretary, Prof Tukur Muhammad-Buba, the forum is generally satisfied that the issues of equity, population, and derivation have been addressed in a way that ensures equity.
“We are studying the report from our committee, the original bills, and the governors’ recommendations. We will provide specific recommendations within the next day or two,” Muhammad-Baba said.
The ACF had set up a committee to scrutinise the proposed tax reform bills and provide recommendations on contentious areas. The forum’s efforts aim to ensure that the reform initiatives address the needs of all stakeholders and promote equity and fairness.
Muhammad-Baba noted that the governors’ recommendations departed from the original bills, but acknowledged that they are an improvement over the original proposals.
“It’s up to the governors; it’s their prerogative,” he said, adding that “They probably have more details than ordinary folks. But we will study their recommendations and provide our input.”