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 PUNCH 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Following this, the National Economic Council, Nigeria’s highest economic advisory body, requested that they should be withdrawn for more consultations.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Godswill Akpabio, on Thursday, swiftly discarded Barau’s instruction, emphasising that the bills had neither been withdrawn nor had the public hearing been postponed.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 PUNCH, 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 PUNCH 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.
