AFRICA

House Of Reps Claim Governors Are Making Threats Over Tinubu’s Tax Reform Bills

The deputy spokesman of the House of Representatives, Mr Philip Agbese, has disclosed that some governors are threatening to deny some federal lawmakers return tickets in the 2027 general election if they did not withdraw their support for President Bola Tinubu’s Tax Reform Bills now before the National Assembly.

Agbese said the lawmakers would engage the chairman of the Presidential Committee on Fiscal and Tax Reforms, Taiwo Oyedele, and other renowned tax experts on the bills.

But Oyedele, on Monday, said the proposed tax reform bills before the National Assembly were not aimed at undermining any region of the country.

On September 3, Tinubu transmitted four tax reform bills to the National Assembly for consideration, following the recommendations of the Oyedele-led tax reforms committee.

The bills included the Nigeria Tax Bill 2024, expected to provide the fiscal framework for taxation in the country, and Tax Administration Bill, designed to provide a clear and concise legal framework for all taxes in the country and reduce disputes.

Others were the Nigeria Revenue Service Establishment Bill, to repeal the Federal Inland Revenue Service Act and establish the Nigeria Revenue Service, and the Joint Revenue Board Establishment Bill, which would create a tax tribunal and a tax ombudsman.

But Nigeria’s 36 governors demanded the withdrawal of the executive bills, citing the need for more consultation and public input.

The president rejected the counsel of the governors, insisting that amendments to some of the clauses can be made when the bills come up for debate in the Senate and House of Representatives.

Speaking with newsmen in Abuja, Agbese said some governors were holding meetings ahead of the National Assembly’s resumption to consider the tax bills and other important legislations.

He stated, “Some of these governors are threatening members from their states. They have even gone far to threaten that they would deny members return tickets in 2027 if they support the bills.”

However, the Benue lawmaker said nothing would make him and his colleagues change course, provided the bills were targeted at revamping the economy.

Agbese said, “As far as we are concerned in the House of Representatives, nobody can stop us from supporting President Bola Tinubu’s bid to reboot the economy to work for the country.

“We are united across party lines to make sure the country works. This is the disposition of Speaker Tajudeen Abbas.”

Waxing spiritual, Agbese quoted Isaiah 54:15, saying, “Behold, they shall surely gather, but not by me. Whosoever shall gather together against thee shall fall for thy sake.”

While noting that lawmakers in the past could, indeed, be cajoled to give up their principles, the legislator reminded the governors that the 10th National Assembly members were a different breed of Nigerians.

He said, “The difference between the new crop of politicians in the House of Representatives is that we are intellectually sound, progressive-minded and pro-Nigeria.

“We were not elected by the governors but our constituents and as far as the legislation (bills) will work for those that elected us, we will support them unequivocally, wholeheartedly and powerfully to see the light of the day.”

Nevertheless, Agbese said the House would interface with the chairman of the Presidential Committee on Fiscal and Tax Reforms, Oyedele, and other tax experts, ahead of Tuesday’s resumption of plenary.

He added that the leadership of the House, in a bid to enable lawmakers to make contributions from a position of informed knowledge, had distributed copies of the bills to members for their independent study.

“We are engaging Taiwo Oyedele and other tax experts on Monday. We have made copies of the bills available to every lawmaker to study, dissect and make inputs when we bring them up for debate,” he stated.

Agbese added that the proposed legislation was likely to scale through, but with some amendments where necessary.

However, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, on Monday, said the proposed tax reform bills before the National Assembly were not aimed to undermine any region of the country.

Speaking at an interactive session on the proposed tax reform bills, organised by the House of Representatives, Oyedele argued that the proposed legislation would only ensure efficiency and give more revenue to states where goods and services were consumed.

He stated that currently, under Section 40 of the VAT Act, VAT revenue was allocated 15 per cent to the federal government; 50 per cent to the states and FCT; and 35 per cent to local governments.

“There is no negative thinking about any region or anything,” he stressed.

Speaker of the House of Representatives, Hon. Tajudeen Abbas, said the tax reforms bills presented by Tinubu would be diligently scrutinised in the best interest of Nigerians.

Abbas said the House was yet to take a definitive position on them, explaining that the House owes Nigerians a duty to ensure that the outcome of the bills is in the national interest.

Abbas said the four tax reform bills represented critical proposals from the executive to expand Nigeria’s tax base, improve compliance, and establish sustainable revenue streams for the nation’s development.

He stated, “The purpose of the interactive session is to provide members with a comprehensive understanding of the proposed bills and deepen their appreciation of their provisions, commence constructive dialogue on contentious or controversial areas, and build the consensus.

“The interaction will help identify areas that need amendment, clarification, or improvement as well as consider the compatibility of these bills with the 1999 Constitution (as amended) and other extant laws.

“Tax reforms form part of the provisions of the House Legislative Agenda because of their central role in achieving sustainable economic growth and development.”

Abbas stressed that in every modern state, taxes were the bedrock of public revenue, providing the resources required to deliver education, healthcare, infrastructure, and security.

The speaker lamented that despite being Africa’s largest economy, Nigeria still struggled with a tax-to-GDP ratio of just six per cent—far below the global average and the World Bank’s minimum benchmark of 15 per cent for sustainable development.

He said, “This is a challenge that must be addressed if the country is to reduce its reliance on debt financing, ensure fiscal stability, and secure our future as a nation.

“The proposed tax reform bills aim to diversify our revenue base, promote equity, and foster an enabling environment for investment and innovation.

“As representatives of the people, they must approach these reforms thoughtfully, understanding their potential implications for every segment of society.

“Taxes should be fair, transparent, and justifiable, balancing the need for public revenue with the burdens they impose on individuals and businesses.”

Deputy Speaker of the House, Benjamin Kalu, assured Nigerians of the lower chamber’s commitment to crafting a tax system that not only generated revenue, but also engendered equity, economic growth, and sustainable development for our nation.

Kalu said tax policy was more than a fiscal tool, describing it as a catalyst for progress, a vehicle for opportunity, and a foundation for inclusive prosperity. He said tax policy must be rooted in the collective aspiration to create a tax regime that works for all Nigerians, regardless of their economic standing.

Chairman of the Federal Inland Revenue Service (FIRS), Zack Adedeji, said the agency was awaiting the outcome of the bills.

Chuks Okocha and Juliet Akoje

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