House suspends debate on tax reform bills amid widespread opposition

The House of Representatives has indefinitely postponed its planned debate on President Bola Tinubu‘s proposed Tax Reform Bills following mounting opposition from northern lawmakers, governors, and socio-political groups.

A memo signed by the Clerk of the House, Dr. Yahaya Danzaria, confirmed the suspension, citing the need for further consultations with stakeholders.

The Tax reform debate, initially slated for December 3, was delayed after 73 northern lawmakers, including 48 representatives from the North-East and 24 from Kano, rejected the bills.

Governor Babagana Zulum of Borno State and Senator Aminu Tambuwal, among others, have voiced concerns about the timing and potential economic disparities the reforms could exacerbate, particularly for northern and less industrialized states.

During a closed-door session last week, tensions rose as lawmakers from the North-East and North-West argued against the bills, emphasizing the need for deeper consultation.

Governor Zulum, in particular, criticized the rush to pass the bills, comparing them to the Petroleum Industry Bill, which took decades to finalize.

The reforms, which include the Nigeria Tax Bill 2024 and other related legislation, aim to streamline tax administration and enhance revenue generation.

Critics, however, argue the proposed changes to the Value Added Tax (VAT) sharing formula would disproportionately benefit Lagos State while disadvantaging northern and southeastern states.

The Northern Governors Forum and the Coalition of Northern Groups have also rejected the bills, urging for broader stakeholder engagement.

Meanwhile, the APC has defended the proposals, emphasizing their potential to rejuvenate the nation’s fiscal policy and promote economic growth.

The bills remain a subject of heated debate as lawmakers and stakeholders continue to weigh their implications for Nigeria’s fiscal federalism.