The Peoples Democratic Party (PDP) and other stakeholders on Monday called for broader consultations among relevant stakeholders to address concerns over the tax bills currently before the National Assembly for consideration and passage.
The PDP Deputy National Publicity Secretary, Ibrahim Abdullahi, and the Deputy National Youth Leader, Timothy Osadolor, wondered why President Bola Tinubu was in a hurry to pass the bills.
For more than two weeks, the bills have sparked widespread controversy with some northern lawmakers strongly opposed to the passage of the bills.
Following approval of the Federal Executive Council in October, President Tinubu transmitted four tax reform bills to the National Assembly for consideration.
The Federal Government says the bills are aimed at overhauling the nation’s tax system.
They include the Nigeria Tax Bill 2024, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.
The proposed legislation seeks to consolidate existing tax laws, establish clearer frameworks for tax administration, and create bodies like the Tax Appeal Tribunal and the Office of the Tax Ombudsman.
In an interview with The PUNCH on Monday, Abdullahi said the government needed to recognise the significant implications of the bills, stressing that the collective interest of the citizens should be the priority.
He stated, “My take aligns with the position of the majority of Nigerians. If the elite members of society, particularly the governors, are apprehensive, it calls for an expanded or broader review of the situation.
“The government needs to realise the great implications of this, as the collective interest of the citizenry should be at the forefront. Governors, being in a position to understand these implications, should be involved.”
He added, “However, I do not believe this should be a priority going forward for this country. Nigerians have been struggling since the arrival of this government, with skyrocketing inflation and harsh economic policies.
“The effects have been severe, whether it’s the floating of the naira, the removal of subsidies, or the numerous taxes that the country has had to deal with over the past year. It’s time for a change, as it’s not in the nation’s best interest to rush this process.
“If there are no sinister motives behind it, why the haste? We need more time for Nigerians to review and evaluate the implications of these decisions. If it truly serves our interest, it will be accepted naturally. However, the rush with which the government is pursuing this raises doubts about the sincerity of their intentions.”
Also speaking, Osadolor acknowledged that the concept of tax reform was positive but urged the Federal Government not to rush the process.
He said, “There should have been wider and deeper consultations. You see, democracy is about the participation of everyone, not a Nazi-style approach to issues.
“If there is a large and strong call for more understanding, there is no need for a rush. Even in the past, without these tax reforms, we moved on.
“I don’t see how waiting for a week, two weeks, or even up to six months to explain this cause and gather input from other Nigerians would be a problem. It’s always good to consult and communicate with the people so that unnecessary conflicts can be avoided.
“The idea of the tax reforms is welcome, but there are clauses that I think people are unhappy with, and that I, too, find uncomfortable. So, I believe that if there had been more consultations, more public hearings, and more engagement with the states, many of these conversations and frictions across the country would not be happening now.”
The Presidential candidate of the Labour Party in 2023, Peter Obi, also called for transparency in the proposed tax reforms to build public trust.
Obi made the recommendations via his X handle on Monday.
He said, “’Tax reform is a critical issue, and there is nothing wrong with pursuing it. However, such reforms must be subject to robust public debate. A public hearing on tax reform is essential, allowing Nigerians from all walks of life to engage meaningfully. This is how we build public trust and ensure inclusivity in policymaking.
“Matters of this magnitude require extensive deliberation and careful consideration—they should never be rushed. Public hearings must be conducted to allow for diverse opinions and inputs. When considering tax reforms and similar issues, it is insufficient to focus solely on the benefits to the government, particularly in terms of increasing revenue collection. We must also take into account the overall impact on the nation and the sustainability of all its regions.
“Furthermore, the government must sensitize the people and secure their buy-in for any policy changes. Trust and legitimacy are the foundation of effective governance, and without them, even the best-intended reforms may fail.
“Let us prioritize transparency, deliberation, and public engagement in charting the path forward. This is how we build a truly participatory democracy. A new Nigeria is possible!”
The National Secretary of the Labour Party, Umar Farouk, endorsed the opposition to the bills, stating they were not aimed at enhancing the nation’s fiscal policy framework.
“For me as a stakeholder, I am 100 per cent in support of the governors for the complete abolition or rejection of that new tax bill because it does not carry the popular opinion,” Farouk said.
“Aside from the people of the North, the downtrodden will also be affected. There is no point in a new derivation formula. If Nigeria is one, then let it be one.
“So, let there be equity in the distribution of our taxes and the national cake. The issue is that if they think Lagos is generating most of the VAT and other internally generated resources, then the north is providing the consumption of whatever is being generated. Everybody has his contribution. No region is idle.”
Some Northern lawmakers in the House of Representatives on Monday said the opposition by legislators to the tax reform bills proposed by the President is irreversible until such a time the region is convinced that its economy would not be affected.
A lawmaker from the North-East, who spoke on condition of anonymity, noted that the speed with which the President wanted the bills to be given accelerated passage raised suspicions among the citizens.
When asked if northern lawmakers were being lobbied to support the bills, the lawmaker said there’s nothing wrong in being approached to support a public policy, adding however that “This one is a delicate matter that needs to be handled very carefully.”
“Our governors have spoken on this matter. The North is no longer what it used to be. Many years of insurgency have destroyed its economy. If you wake up with a policy aimed at reducing what ordinarily comes to them and with the N70,000 minimum wage; then there is going to be a problem.
“This is the issue at stake. We are not against the economic growth of this country as some reports are insinuating. Far from it! We are asking for time to consult more and when we are ready, we’ll say it.”
On his part, a federal lawmaker from Kano State and member of the New Nigeria People’s Party, Tijjani Ghali, backed the position of the Northern Governors Forum on the bills.
“I believe they have a fair understanding of the economy of Northern Nigeria where they came from. They represent the interests and the governance of their region and their state.
“Their position, I believe, is based on knowledge and understanding. They have taken the right step and I support their position to completely reject these bills because it’s not the right time to bring these kinds of bills.”
