Shehu Sani, Ndume Differ On Tax Reform Bill

The proposed tax reform bill before the National Assembly is becoming increasingly contentious, with Senators Shehu Sani and Ali Ndume expressing differing opinions.

Senator Shehu Sani, who represented Kaduna Central (2015-2019), believes the reform will benefit the Northern region more than critics suggest.

There has been growing concern among Northern elites, including lawmakers from both the upper and lower chambers of the National Assembly, who fear that the bill could harm the interests of the North if it is passed.

This unease was sparked when President Ahmed Tinubu submitted an executive bill to the National Assembly in October, urging lawmakers to consider and pass four tax reform bills, including the Nigeria tax bill, the tax administration bill, and the establishment of a joint revenue board.

In response to these proposals, Senator Mohammed Ali Ndume, who represents Borno South and previously served as Chief Whip, voiced strong opposition, calling the bill “ill-timed” given Nigeria’s current economic crisis.

While he admitted he had not yet read the bills, Ndume expressed concern that the tax reform would increase the financial burden on citizens.

He said, “I can tell you it will be dead on arrival. We don’t need to study the bill. Right now, people can’t even afford to eat. They are struggling to survive. Let people live first before you start asking them for tax.”

In contrast, civil rights activist Shehu Sani criticised Ndume’s stance, labelling him a lazy lawmaker for opposing the bill without fully understanding its contents. Sani argued that the North should not fear the bill and emphasised its advantages, particularly the provision that allows states to control the Value Added Tax (VAT) collected within their borders.

Sani explained, “The bill proposes that companies pay VAT to the host state instead of funnelling it into a single account not shared among the 36 states, including the Federal Capital Territory. This is economically beneficial and fair for all regions.”

He urged people to set aside their biases and thoroughly read the bill, describing it as a comprehensive effort to simplify tax administration, enhance revenue generation, and combat corruption associated with tax waivers granted to business elites. Sani reassured that nothing in the document would disadvantage any region or lead to increased taxes or job losses.

Sani stressed that the reform could significantly shift from the outdated tax system to a more effective revenue-generating framework, which requires a courageous approach from leadership, particularly in addressing business interests that evade tax responsibilities.

He warned that the economy would suffer if the tax reform bills were rejected and condemned the Northern State Governors’ opposition.

He advised them to consider hiring consultants to study the bill if they lacked the time to do so and reconsider their position.