The tax reform bill proposed by the President has hit a major snag in the House of Representatives, with debate on the bill suspended indefinitely. This decision was conveyed in a memo signed by the Clerk of the House, Dr. Yahaya Danzaria, following widespread opposition from northern lawmakers and governors. The bill, originally scheduled for debate on Tuesday, now faces uncertainty as stakeholders call for broader consultations.
Why It Matters
Tax reforms play a pivotal role in shaping the economic future of any nation. This proposed reform aims to restructure how taxes, including Value Added Tax (VAT), are shared across states. However, the strong resistance from northern governors and lawmakers highlights the regional disparities and competing interests within the country. The outcome of this debate will not only influence fiscal policies but also impact national unity and economic equity across states.
Northern Governors Lead the Opposition
Northern governors have been vocal in their criticism of the bill, describing it as detrimental to their region’s economic growth. At a meeting in Kaduna, the Northern Governors Forum directed federal lawmakers from their states to oppose the bill. The governors particularly object to the proposed VAT-sharing template, arguing that it disproportionately favors certain regions to the detriment of others.
Their stance has resonated strongly with northern lawmakers, who have expressed similar concerns. Seventy-three lawmakers, including 48 from the North-East and 24 from Kano, have rejected the bill. Former Sokoto State Governor, Senator Aminu Tambuwal, has also joined the opposition.
Tensions Erupt in Closed-Door Session
A leaked video from a closed-door session of the House revealed heated arguments among lawmakers, particularly from the North-East. The debates grew so intense that they nearly escalated into a rebellion against Deputy Speaker Benjamin Kalu, who presided over the session.
One North-West lawmaker explained, “The speed with which they want these bills considered and passed is suspicious. Our governors are not convinced, and neither are we. We need more time to consult with our people.”
The lawmakers also expressed concerns that the bills could negatively affect other regions, including the South-East, South-West, and specific states like Oyo, Osun, Ekiti, and Ondo.
The President’s Stance
Despite advice from the National Economic Council, chaired by Vice President Kashim Shettima, to withdraw the bills for broader consultations, the President has refused to back down. This steadfastness has added fuel to the controversy, with critics questioning the administration’s motives and approach to such a critical policy.
What’s Next?
The memo suspending the debate indicates that a new date and venue for the session will be announced after further consultations with stakeholders.
For now, the bill’s fate remains in limbo, with northern lawmakers and governors standing firm in their opposition.
The Bottom Line
The tax reform controversy underscores the deep-seated regional and economic divides in Nigeria. While reforms are necessary to address fiscal challenges, the current approach has exposed a lack of consensus among key stakeholders.
Without broader consultations and compromises, the bill risks further polarizing the country. The President and lawmakers must navigate this delicate issue carefully to ensure equitable reforms that unite rather than divide the nation.
