Senate Minority Leader, Moro, Worries Over Politicised Tax Reform Bills

The Senate minority leader, Senator Abba Moro, has expressed concern that the ongoing discussion regarding Nigeria’s proposed tax reform measures has become increasingly politicised.

Moro called for a more focused examination of the proposed legislation.

During an interview with ARISE NEWS yesterday, he spoke on the terms of reference for the bills, emphasising the importance of addressing concerns raised by critical stakeholders, including the legal implications of some provisions.

He pointed out that one of the central issues raised is the proposed changes to the VAT distribution model, which critics argue could disproportionately disadvantage some communities, especially in the north.

According to Moro, the concern of some people is that the current VAT distribution system, which is based on equity, equality, and population, may not be adequate under the proposed model that shifts the focus to consumption.

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“It is assumed that if you introduce derivation in sharing VAT, now, you’re going against the constitution because there is no constitutional provision for that,” he added.

Moro emphasised that one of the issues in the current situation is the excessive hype surrounding the process. He noted that, based on social media and recent publications, the entire debate has been politicised, trying to create a divide between the North and South.

He stated, “I dare want to say that it is the politicisation of this bill that is, in the first place, responsible for where we are now, so I don’t want to look at the political side of it.

“I think that by the time further advocacy and sensitisation is carried out, very many people who out of lack of understanding, apparently may have been kicking against this bill, will come to realise that the bill means well for the entirety of Nigeria.”

In response to the rising tensions, the Senate had paused further action on the tax reform bills. The Deputy Senate President, Jibrin Barau, announced that the Committee on Finance has been instructed to halt the public hearings until the ongoing agitation is addressed. Furthermore, a special committee has been formed to engage with the executive branch and work towards resolving the issues surrounding the tax proposals.

The bills in question include the Joint Revenue Board of Nigeria (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024; and the Nigeria Tax Bill, 2024. Since their introduction to the National Assembly, the bills have been met with significant opposition, particularly from northern governors who have labelled them as anti-democratic. Despite this, Moro reassured that the government remains committed to ensuring that the reforms are in the best interests of the country.