Tax Reform Bills: CSOs Kick As FG Blames Opposition On Ignorance

Civil Society Organisations (CSOs) in Nigeria have criticised the federal government for labelling some citizens’ opposition to the four tax reform bills as ignorance.

The director general of the National Orientation Agency (NOA), Lanre Onilu, said that various quarters in the country are resisting the tax bill because they lack proper awareness regarding the benefits of the proposed tax reforms.

Speaking on Wednesday at the Federal Secretariat, Bauchi, during a press briefing with journalists on the potential benefits of the tax reform bills submitted by the presidency to the National Assembly for consideration, Mr Onilu insisted that the reforms offer many advantages, particularly for the poor. He added that those opposing them are political figures who stand to pay more taxes under the new regime.

The NOA Director General, represented by the National Director of Planning, Research, and Strategy, Nuru Kobi, said the agency is committed to promoting awareness of ethical values and national development.

He added that, in addition to tax reform, the agency is initiating sensitisation campaigns in other areas, including HIV prevention, security awareness, human rights, and discouraging “get-rich-quick” schemes.

Mr Onilu argued that critical stakeholders, including the media, must be involved in shaping positive public perspectives on these key issues. He revealed that the tax reform bill would soon be made available in local languages to enhance understanding.

For her part, Bauchi State director of the agency, Mrs Theresa Omaga, stated that officials intend to lead efforts in every community within Bauchi State’s 20 local government areas.

According to her, amplifying these efforts to ensure the message resonates with every Nigerian is paramount.

However, civil society organisations have criticised the government for chiding citizens on an issue the government has failed to provide adequate public education.

The CSOs that spoke to LEADERSHIP include the Transition Monitoring Group (TMG), Transparency International (TI), and the Civil Society Legislative Advocacy Centre (CISLAC).

“It is not wise to attack Nigerians. The government should engage in sensitisation. If the bills benefit Nigerians, they will accept them with adequate sensitisation. Bullying will not solve the problem. If the bills benefit Nigerians, the government should sensitise the people and dialogue with them,” the CSOs said while urging members of the National Assembly to be patriotic.

LEADERSHIP reports that the CSOs have advocated for fiscal policy reforms that address Nigeria’s socio-economic challenges while promoting transparency and inclusiveness. They described the Nigeria Tax Bill 2024 as a landmark legislative initiative that could transform the country’s fiscal framework by consolidating legal provisions, enhancing tax administration, and promoting economic transparency.

“However, we strongly urge the National Assembly and the Executive to critically examine and address key gaps in the bill to ensure its implementation fosters inclusivity, economic equity, and sustainable governance,” the CSOs said.

CISLAC executive director, Auwal Musa Rafsanjani, highlighted several critical concerns within the bill.

He said: “The proposed derivation model for VAT revenue distribution risks deepening economic disparities among states. Addressing such systemic inequities requires a constitutional review. To mitigate these challenges, we advocate establishing an Equalisation Fund to support less-developed states in building their human capital and institutional capacity until 2030. Additionally, VAT must be collected at the point of sale rather than remitted to corporate headquarters to enhance transparency and prevent regional disparities in revenue allocation.

“The proposed increase in VAT rates, which are set to double by 2030, raises significant concerns about its impact on inflation and poverty. We recommend maintaining the current VAT rate of 7.5% until the economy stabilises, coupled with measures to shield vulnerable populations from price shocks. It is also imperative that the list of VAT exemptions be expanded to include essential items such as cooking energy (LPG and kerosene) and electricity for consumer use, to mitigate the regressive effects of taxation on low-income households.”

“To ensure tax incentives are administered equitably, we emphasise the need for transparency in their implementation. Strengthening the enabling laws of the Nigerian Investment Promotion Commission (NIPC) is critical to preventing misuse and ensuring inclusivity. Furthermore, the bill’s provisions for an effective tax rate on multinationals and high-turnover companies must be backed by clear and enforceable guidelines. Strengthening compliance mechanisms will ensure that large corporations and multinational enterprises contribute their fair share to national revenue.”

“Revenue from the Development Levy must be transparently utilised to enhance education and institutional capacity in underserved regions, supporting long-term human capital development,” Rafsanjani stressed.

The CSOs underscored that fiscal policies should bridge socio-economic divides while fostering trust between the government and citizens.

He further urged the National Assembly to engage with stakeholders, including civil society organisations, to ensure the bill reflects the aspirations and needs of all Nigerians.

 Senate Suspends Legislation

Meanwhile, the Senate has directed its Committee on Finance to halt further deliberations on the proposed tax bill until the outcome of a high-level meeting with the Attorney General of the Federation (AGF).

The announcement was made on Wednesday during the plenary session presided over by Deputy Senate President Barau Jibrin, who revealed that a special committee had been formed to address the bill’s contentious provisions.

The meeting with the AGF to resolve the issues is scheduled for today, Thursday, December 5.

This decision follows intense discussions among lawmakers to resolve disagreements on key aspects of the proposed legislation. The contentious provisions have sparked debates among stakeholders over the past few days.

The Senate leadership also announced plans for a special meeting at the National Assembly, to be chaired by the Minority Leader.

The session aims to provide a platform for lawmakers to harmonise their positions and ensure that the bill aligns with national priorities while addressing concerns raised by stakeholders.

The special committee tasked with resolving the issues has the following members: Senators Abba Moro (chairman), Tahir Monguno, Adamu Aliero, Orji Uzor Kalu, Seriake Dickson, Titus Zam, Yahaya Abdullahi, Solomon Adeola, Sani Musa, and Mukhail Abiru.

The committee and Senate leadership are expected to lead efforts to ensure a balanced and inclusive approach to the proposed tax legislation.