The fate of President Tinubu’s Tax Reform Bill hangs in the balance as the contents continue to attract criticisms and controversies. The Bill, which is to go for a public hearing, has faced opposition from different interest groups. Despite the controversies, the Presidential Advisory Committee on Fiscal Policy and Tax Reform has insisted that there is no intention to withdraw the bill.

Mr Taiwo Oyedele, Chairman of the Presidential Advisory Committee on Fiscal Policy and Tax Reform, disclosed this during the town hall meeting to address the stiff opposition the tax reform bill has faced since it was introduced in the House of Assembly for legislation, as lawmakers from the north and governors have expressed their disapproval of the development and called for the bill’s withdrawal.

Mr Oyedele said that even though the state governors and relevant persons in the states’ financial departments were consulted before the committee forged ahead to finalise the bill, the committee is ready to further engage the members of the public and other concerned people for clarity as they progress in formulating the policy.

Speaking on the accusation that the committee did not consult the state governors before submitting the bill to the National Assembly, he stated, “No, they won’t say we didn’t consult them. They are saying we need to consult more, which we agree with because consultation will never end. Even after passing the bills, we must continue to consult.

“We had two sessions with the National Economic Council. We had almost a whole day with the finance commissioners from all over Nigeria.

“We’ve had at least four sessions with the heads of the internal revenue services from all the 36 states plus the FCT. For six geopolitical zones, we identified one governor per zone and wrote to them to go and meet them where they are with their cabinet and discuss. We did some of that.

“Some of them did not have time for us. Those who had, who appreciate the government of Nigeria, they say, no, let’s even set up a committee between my cabinet and your team to work through the details.”

Oyedele stated further, “We worked for more than six months. We always welcome opportunities to engage. But it is not correct to say that we did not consult.

On September 3, President Tinubu submitted four bills to the National Assembly for the review and reform of the existing tax law in the country. The president asked the lawmakers to consider the bill based on the recommendation of his committee on fiscal and tax reform.

Among the four bills are the Nigeria Tax Bill 2024, which aims to reform the nation’s taxation policy, and the Tax Administration Bill, which aims to establish a clear and simple legal framework and settle all of the nation’s ongoing tax disputes.

Other bills are the Nigeria Revenue Service Establishment Bill, seeking to scrap the existing Federal Inland Revenue Service Act and establish the Nigerian Revenue Service, and the Joint Revenue Board Establishment Bill, which would create a tax tribunal and tax ombudsman.

One of the bills also aims at changing the Value Added Tax (VAT) sharing formula by reducing the Federal Government’s share from 15 per cent to 10 per cent but increasing the state derivation sharing from 20 per cent to 60 per cent on generation and consumption.

Consequently, the bill has met strong opposition from many states and lawmakers, who argued that the bill could endanger the economic viability in the northern region of the country. They also expressed their concerns that the bill might impoverish the northern region, which is currently not contributing much due to economic fragility embattling the region as the sharing formula might create a dichotomy between the north and the south.

In a similar vein, after the October National Economic Council meeting chaired by Vice President Kashim Shettima, the 36 State Governors suggested withdrawing the bill to allow for extensive stakeholder consultation and consensus-building.

However, President Tinubu ignored the recommendation of the NEC and insisted that the governors should allow the process to take its full course, adding that since the bill has already been submitted to the National Assembly, the lawmakers should be allowed to deliberate on the bill and raise their concerns.

As a result, some of the influential northerners have become louder in demand for the withdrawal of the bill. The key critics of the bill, including the senator representing the Borno North Central Senatorial District, Ali Ndume, the Borno State Governor, Babagana Zulum, the Nasarrawa State Governor Abdullahi Sule, the former Vice
President Atiku Abubakar and former Sokoto State Governor, Aminu Tambuwal objected to the socio-economic consequences of the bill.

While some of their criticisms have bothered on the economic consequences, some of them also addressed the timing and lack of enough consultation with Nigerians. There was also an issue of transparency and the implementation style of the bill once it became law.

Amid the growing concern, the bill was passed on to the second reading in the Senate last week, but 73 members of the House of Representatives suspended the debate on the bill indefinitely according to a memo signed by the Clerk of the House of Representatives, Dr Yahaya Danzaria.

To allay the fear of the northern leaders, a statement by the Special Adviser to the President of Information & Strategy, Bayo Onanuga, on Sunday explained that the tax reform bill does not intend to make the southern part of the country richer than the north nor will it crumble the economy of the northern part of the country.

Mr. Onanuga said, that instead of the public belief about the bill, it will further enhance the quality of life for Nigerians, especially the disadvantaged, who are trying to make a living.

He further explained that the president “ welcomes the public interest these bills have generated. He encourages leaders across the country, including Governors, Traditional rulers, Civil Society Activists, Students, trade associations, professional associations, and the general public, to take advantage of the Public Hearings that the National Assembly will organise to present their views on how best to reform our taxes and fiscal regime.”

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