The House of Representatives is preparing for yet another round of discussions on the four tax reform bills presented by President Bola Tinubu in September 2024. Scheduled for deliberation in party and state caucus meetings this weekend and Monday, the bills are far from straightforward. While the government claims that the reforms are designed to streamline Nigeria’s tax system, the reality on the ground is a funny picture. These bills, drafted following the recommendations of the Taiwo Oyedele-led Presidential Committee on Fiscal and Tax Reforms, promise to reshape the fiscal landscape of the country.
First, we have the Nigeria Tax Bill 2024, which is supposed to create a comprehensive fiscal framework for taxation. Administration Bill, which aims to eliminate confusion and reduce disputes. Then there’s the Nigeria Revenue Service Establishment Bill, which would replace the Federal Inland Revenue Service Act, establishing a new agency to manage revenue. While this might sound like a major change, one has to wonder, will it make the system more efficient ? And let’s not forget the Joint Revenue Board Establishment Bill, which would set up a tax tribunal and ombudsman.
But the real drama begins when we consider the opposition. State governors, those power brokers who have a lot to lose are vehemently against these bills. They’ve called for the bills to be withdrawn, demanding more consultation before moving forward. And who can blame them? When it comes to taxes, it’s not just about the numbers, It’s about who gets to control the purse.
The House of Representatives went into an executive session on November 28, 2024, lasting over two hours. Yet, when they reconvened, the bills were conveniently absent from the day’s agenda. The reason for this delay? Well, according to Deputy House Spokesman, Mr. Philip Agbese, it’s all about gathering more insight and allowing lawmakers to “better contribute” when the bills come up for discussion.
Agbese insists that the opposition to the bills isn’t about political affiliation. “Support and opposition to the bills have no political colouration,” he says Agbese claims that fears about the reforms are being addressed through continued consultations and consensus-building, which is, of course, code for “we don’t have a final plan yet.”
Interestingly, some lawmakers have started to warm up to the bills, claiming that “enlightenment” has helped change their minds. According to Agbese, over half of the lawmakers who were initially against the bills are now on board.
Maybe those tax experts who were brought in for a session really worked their magic, and we’re able to convince them, though it’s unclear whether they provided any actual solutions or just more vague promises of reform.
On the other hand, opposition lawmakers like Mr. Oluwole Oke from the Peoples Democratic Party are pushing for the bills to be passed through the second reading. Oke argues that Nigerians deserve the chance to weigh in on these proposed reforms, and he’s not wrong. After all, it’s the citizens who will be stuck with the consequences if these tax bills are poorly implemented. “We need to listen to Nigerians that sent us to represent them,” Oke says. It sounds nice.
As the House prepares to resume plenary on Tuesday, my mind is on whether these bills make it through the second reading. Will lawmakers finally come to a consensus, or will they drag this out until the end of time? With the state governors opposing the bills and the House still in “consultation mode,” it’s hard to say.
