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PRESIDENCY LOBBIES NATIONAL ASSEMBLY OVER TAX REFORM BILLS
The Presidency has intensified lobbying the National Assembly to pass the tax reform bills, Daily Trust has reliably learnt.
It was gathered that the leadership of the House of Representatives has invited caucus leaders of the House for a crucial meeting aimed at convincing lawmakers to back the bills.
The meeting is scheduled for today.
Sources indicated that the Presidency is eager for the reform legislations to be passed before the year ends so that they can take effect by January 1, 2025, alongside the 2025 Budget.
The renewed push for the bills is said to be sequel to the increasing pressure from northern governors, who are urging lawmakers from the region to resist the reforms.
The Northern States Governors’ Forum and the traditional rulers from the region had rejected the proposed amendments, particularly the proposed shift in value added tax (VAT) distribution to a derivation-based model, which they argued, would disproportionately harm the northern region and other sub-national entities.
After then, the National Economic Council (NEC) led by Vice President Kashim Shettima, had suggested that the tax reform bills should be subjected to additional scrutiny, but President Bola Tinubu said it should be allowed to pass through legislative processes.
A lawmaker who spoke to Daily Trust yesterday confirmed that intensive lobbying was ongoing by the presidency.
“They are reaching out to get the by-in of lawmakers. They want us to support the bills to scale through,” the lawmaker, who does not want to be named, said.
He, however, said lobbying is not wrong, as it is being done in advanced democracies like the United States.
“Lobby is part of democratic process to get things done, but you should understand that pushback by those who feel the issue in contention will not favour them is also legitimate,” he said.
The pushback by relevant stakeholders from the North came after President Tinubu transmitted the four tax reform bills to the National Assembly for consideration on October 3.
The bills are the Nigeria Tax Bill 2024, which is expected to provide the fiscal framework for taxation in the country, and the Tax Administration Bill, which will provide a clear and concise legal framework for all taxes in the country and reduce disputes.
The others are the Nigeria Revenue Service Establishment Bill, which will repeal the Federal Inland Revenue Service (FIRS) Act and establish the Nigeria Revenue Service, and the Joint Revenue Board Establishment Bill, which will create a tax tribunal and a tax ombudsman.
The push by northern governors on their lawmakers to oppose the bills was confirmed last week by the deputy spokesman of the House of Representatives, Philip Agbese (APC, Benue), who revealed that some governors had threatened lawmakers with the potential loss of re-election tickets in 2027 if they chose to support the bills.
Lawmakers stand firm on constituents’ wishes
In the face of the growing pressure, several lawmakers have expressed their commitment to prioritising their constituents’ interests, rejecting external pressure in favour of local concerns.
Senator Abdulrahman Kawu Sumaila (Kano South), in a chat with Daily Trust yesterday, said while he had not been lobbied directly, his loyalty lies with his constituents.
“I am not aware of any pressure, but as I told you last week, we are studying the bill as usual and liaising with our constituents and relevant stakeholders to understand their feelings and views. It is the people’s views and will that will prevail in the end. This is what will happen,” he said.
However, in an interview with the Vanguard newspaper yesterday, the former Deputy Senate Leader, Senator Abdul Ningi (PDP, Bauchi Central), strongly criticised the new tax reform bills, describing them as discriminatory and designed to favour specific states, particularly Lagos, over others.
Senator Ningi accused the President of trying to exploit people’s silence and fears to push the bills through, despite their lack of inclusiveness.
“The crux of the bill lies in its discriminatory nature,” Ningi said.
“It is disturbing that, after failing to convince the NEC, the President is now attempting to push these bills through the National Assembly,” Ningi said.
Ningi urged members of the National Assembly to reject the bills, drawing parallels with the controversial third-term agenda of the past, which lawmakers ultimately discarded despite containing several positive clauses.
“This is not about North or South. The pains of Bauchi are no different from those of Anambra, Ebonyi or Katsina. Lawmakers must stand united against these reforms for the sake of the country,” he said.
The Senator criticised the inequitable distribution of VAT, citing an example of maize processing.
“You buy maize in Kaduna without VAT. When the maize is processed into Semovita in Lagos, VAT is collected when it is sold back in Kaduna. That VAT is returned to Lagos. Where is the fairness or ethics in this system?” he asked.
Rep. Kwamoti Bitrus Laori (Demsa/Lamurde/Numan Federal Constituency, Adamawa) echoed a similar sentiment, emphasising that the welfare of his constituents remained his top priority.
“First and foremost, I was elected to represent a constituency, and that constituency is part of a larger state. So, as a caucus, we have to sit down and dissect the bill, know what is good for the state, and know what is good for our people, and then we will now take a position. That is my stand on this; whether there is pressure any where, is not my business. Those who are putting the pressure did not elect me; those who elect me are those who matter.
“We have sent the feelers to our constituencies. Look, this is what is happening; what position are we going to take? The feedback that we get from our constituencies, we will sit down and aggregate them, and that will be our position,” the PDP lawmaker said.
Also, Rep. Bappah Aliyu Misau (Misau/Dambam Federal Constituency, Bauchi) said, like his governor, he strongly opposed the tax reforms, declaring that lawmakers from Bauchi State, alongside their governor, would not support the bills.
Misau stressed that northern lawmakers were united in their stance against the reforms, as the proposed changes did not benefit their constituents.
“The presidency cannot pressure us; they didn’t elect us. This is about protecting the average person in Bauchi. No member from Bauchi will support this bill,” Misau stated.
He added: “You know how the Parliament works. You can say your opinion and make your stand known. The minority voices would be heard, but the majority voice prevails. Since that is always the case, then there will be a problem. They may do something else. But I am telling you, every patriotic Northern lawmaker is against it.
“Even the few lawmakers that are advocating for this bill are those who don’t even go to their constituencies. They are anti-north”, he said.
Another lawmaker, who asked not to be named, said if the presidency was eager to get the buy-in of northern leaders, it needed to disabuse their minds on the derivation clause in the new bill by presenting a template to show how the VAT would be shared from January.
“They need to give the details with a template of how the Derivation Clause would impact the sharing formula. They should go beyond telling us that only three states are benefiting from the current sharing formula to show all the states how the new formula will
Northern elders oppose bills
The Northern Elders’ Forum (NEF) has also voiced strong opposition to the tax reform bills, labelling them as divisive and poorly conceived.
The forum expressed dissatisfaction with the lack of adequate consultation with key stakeholders, notably the National Economic Council (NEC), which was excluded from the deliberations.
Recall that the NEC had also called on the president to step down the bills for further consultations, but the president had said concerned stakeholders should allow the bills to go through the process of law making at the National Assembly, where he believed they could be fine-tuned if need be.
But Professor Ango Abdullahi, the convener of NEF, in a communiqué issued following a meeting of the forum’s Board of Trustees meeting in Abuja, warned against policies that could marginalise the northern region.
“The Tax Reform Bill, as currently conceived, is a threat to our unity and cohesion. Its suspicious manner of introduction further fuels doubts about its intentions,” the communiqué stated.
The NEF commended the Northern States Governors’ Forum and traditional rulers for their opposition to the bills, calling their stance “patriotic.”
The forum urged northern lawmakers to stand firm in defending the region’s strategic interests, cautioning them against any attempts to compromise their position.
The communiqué went further to warn against “conspiratorial connivance” by lawmakers, urging northern representatives to remain vigilant in defending their rights. The NEF stressed the importance of resisting any potential threats during upcoming elections, particularly as the political landscape continues to evolve.
When contacted for comment, the Special Adviser to the President on Senate Matters, Senator Basheer Lado Mohammed, promised to get back to Daily Trust, but did not do so as of press time last night.
The Special Adviser to the President on Media, Bayo Onanuga, could not be reached on his mobile line and did not reply to a text message sent to him.
It’s designed to deliver good governance – Bwala
Featuring on the Trust TV’s Sunday Politics, the Special Adviser to the President on Policy Communication, Daniel Bwala, said his principal was only demonstrating his passion for good governance.
Asked to respond to the allegation that the Presidency was lobbying the National Assembly to pass the tax reform bills, he said:
“Remember when he (Tinubu) went on campaign, he campaigned on those promises. And it is encapsulated in his manifesto, actually. So, he is trying to make good his promise to the Nigerian people. There is no obsession there. It is passion to deliver on good governance.
Another source close to the presidency, who spoke on condition of anonymity, defended the practice of lobbying as a legitimate component of democratic governance.
“In presidential systems like the U.S., lobbying is a regulated activity that allows governments and interest groups to influence legislation.
“This is why the president has special advisers on National Assembly matters who serve as the chief lobbyists,” he said.
