Members of the House of Representatives were engaged in a shouting match yesterday over the tax reform bills currently before the National Assembly.
The shouts of ‘No! No! No!’ rented the air on the floor of the House of Representatives on Tuesday when the Spokesperson, Hon Akin Rotimi, said lawmakers from his state of Ekiti have endorsed the four tax bills currently before the National Assembly.
The four tax reform bills, namely, Nigeria Tax, Nigeria Tax Administration, Nigeria Revenue Service and Joint Revenue Board of Nigeria (Establishment) Bills, 2024, were transmitted by President Bola Tinubu to the apex legislature and have been controversial.
Northern Governors’ Forum had rejected the new derivation-based model for Value Added Tax (VAT) distribution proposed in one of the bills when they insisted that the provision did not align with the interests of the North and other sub-national entities.
While the bills had passed for a second reading in the Senate, the House postponed the debate on the proposed legislation initially slated for Tuesday, December 3, 2024, indefinitely.
But when Rotimi stood up to present a report on Nigerian content development and monitoring on behalf of the Committee’s chairman, Hon. Boma Goodhead, who was absent on the floor, referred the bills.
“My name is Akin Rotimi Jr. I represent the people of Ekiti North, comprising Ikole and Oye Local Governments. Mr Speaker, I am from Ekiti State, the first state whose National Assembly caucus has unanimously endorsed the tax bills,” he said.
At that point, many lawmakers were infuriated and began to chant “No! No! No!” throwing the House into a rowdy session.
Speaker Abbas Tajudeen, who presided over the session, intervened and said, “He (Rotimi) is expressing his personal opinion.” He was talking on a lighter note. Let us not take it seriously.
“Restrict yourself to the person you are representing here. We are not talking about tax bills. It is a very controversial issue. He, therefore, asked Rotimi to withdraw the statement.
“You know this is a controversial issue. It would be best if you were not mentioning things that are not relevant to the subject matter. On your behalf, I would like to withdraw the statement that you have made.
Consequently, Rotimi apologised and withdrew the statement, but members were still upset and demanded he step down the report.
The House Spokesperson was not allowed to present the report and was forced to step the report down.
He requested, “I seek the leave of the Speaker and Hon members to step down the report.”
Northern Coalition, Sheikh Gumi differ on reforms
A group, the Coalition of Northern Groups (CNG), has taken a swipe at President Bola Ahmed Tinubu’s tax reform bills, alleging that they were conceived without the input of states and would plunge the North into hunger and misery.
In an interview, the leader of the CNG, Nastura Sheriff, pointed out that many Nigerians are now struggling to feed and are unsure of the next meal.
“These bills would further worsen their plight,” he said.
However, Kaduna-based Islamic scholar Sheikh Ahmad Gumi has declared support for the tax reform bills, describing them as beneficial to Nigerians despite opposition from Northern leaders.
Gumi commended the bills’ overall potential for reforms but suggested that the Value Added Tax (VAT) component required adjustment to address concerns expressed nationwide.
“I believe the contentious VAT issue is the only part that needs to be reviewed; otherwise, it is a good package for all,” Gumi said.
Gumi’s support came at a time when some Northern governors, traditional rulers, and prominent Islamic clerics, such as Sheikh Adam Dokoro, Sheikh Bello Yabo, Sheikh Mansur Sokoto, Sheikh Sambo Rigachiku, Sheikh Salisu Zaria, and Sheikh Isa Pantami, had expressed opposition to the bills currently before the National Assembly.
Alpha-Beta denies involvement
Alpha-Beta Consulting LLP has strongly refuted recent claims suggesting the firm’s involvement in the federal government’s proposed Tax Reform Bills currently under review by the National Assembly, describing them as baseless, with the evil intent of misleading the general public.
Speaking on the matter, Barrister Akinsanya Doherty, managing director of Alpha-Beta Consulting LLP, made this known in a statement made available to newsmen on Tuesday.
The statement reads: “As a managing director of Alpha-Beta Consulting LLP, I categorically affirm that I have neither met nor had any discussions, dealings, or involvement with Mr Taiwo Oyedele, chairman of the Presidential Tax Policy and Fiscal Reform Committee, despite our shared profession.
“Furthermore, neither I nor the firm has made any input into the federal government’s tax reform bills. These allegations are false and should be dismissed outrightly”.
Mr Taiwo Oyedele’s had recently clarified during a Town Hall Meeting on the Tax Reform Bills, organised by Channels Television, where Mr Oyedele explicitly denied plans to outsource federal tax collection to any consulting firm, including Alpha-Beta Consulting LLP.
However, he emphasised that the reforms were designed to streamline tax administration without relying on external consultants for its collection.
Tinubu directs Justice Ministry, NASS to work on Concerns
The minister of information and national orientation, Mohammed Idris, has stated that President Bola Ahmed Tinubu has asked the Justice Ministry to meet with the National Assembly to address areas of concern.
Idris said Tinubu’s administration is committed to transparency and accountability in the ongoing discussions surrounding the proposed tax reform bills before the National Assembly.
In a statement issued to newsmen yesterday in Abuja, Idris emphasised that the tax reform process will always prioritise the interests of the Nigerian people.
“The robust nationwide debate on the new tax reform bills is welcome and commendable,” he stated. “It is inspiring to see Nigerians from all walks of life actively participating in this important national conversation. This is the true essence of democracy.”
Idris urged all participants in the debate to maintain a spirit of respectful dialogue despite differing opinions and emphasised the need for informed discourse, warning against name-calling or the use of ethnic and regional slurs.
“There is nothing sinister about this process. The administration welcomes inputs that can address any issues or grey areas in the bills,” he said, noting that President Tinubu had directed the Federal Ministry of Justice and other relevant officials to work closely with the National Assembly to address all genuine concerns before the bills are passed.
The minister also addressed growing concerns and misinformation surrounding the bills.
He reassured Nigerians that the reforms would not impoverish any state or region, nor would they lead to the weakening or elimination of federal agencies. Instead, the reforms are designed to empower state and local governments, benefiting millions of Nigerians and ensuring long-term growth and development.
“The fiscal reforms will bring relief to Nigerians nationwide, empowering states and local governments for sustainable development,” he said.
Further explaining the fiscal reform agenda, the minister said it aims to allocate more resources to state and local governments, strengthening democracy and ensuring it works for the people.
Idris also addressed concerns that the process is being rushed, stating that the government is open to meaningful contributions.
The minister emphasised that these reforms represent some of Nigeria’s most impactful fiscal changes in decades. In addition to the four tax bills, he also pointed to the 2023 Supreme Court ruling on financial autonomy for local governments, which will significantly empower this vital tier of government.
“These reforms are designed to increase revenue without imposing additional burdens on Nigerians while promoting greater accountability in public resource management,” he said.
He further noted that President Tinubu’s administration remains committed to closing the gaps that have allowed Nigeria’s public resources to be mismanaged over the years.
The minister highlighted that the resources saved through these reforms will be directed toward critical infrastructure, such as healthcare, education, transportation, and digital technology, ensuring no citizen is left behind.
“This is the promise and reality of the Renewed Hope agenda,” he added.
