North restrategises as Tax reform bills spark regional tensions in NASS

President Bola Tinubu’s proposed tax reform bills have ignited a crisis along regional lines, with northern lawmakers and leaders voicing concerns about the potential negative impact on the North.

In response, the League of Northern Democrats (LND) has formed a technical committee to scrutinize the bills and identify provisions perceived as harmful to the region.

While southern senators and groups have expressed unanimous support for the reforms, northern lawmakers are seeking further consultations. The situation has stalled legislative progress in the House of Representatives, raising questions about the future of the reform agenda.

Northern Resistance and Strategic Review

The LND announced the formation of a technical panel comprising legal, financial, and legislative experts tasked with reviewing the four tax bills clause-by-clause. The committee has been given a week to deliver its findings and propose amendments. According to LND spokesman Dr. Ladan Salihu, the goal is to ensure the bills promote equity and national unity while safeguarding northern interests.

Northern lawmakers in the House of Representatives have also pushed back, suspending debates on the bills indefinitely. This decision follows growing pressure from lawmakers representing the North-East and North-West, who argue that the reforms may worsen the region’s already dire economic situation.

Senate Divided Amid Leadership Tensions

In the Senate, the divide between northern and southern senators has intensified. Senate President Godswill Akpabio reaffirmed on Thursday that legislative actions on the bills would continue, contradicting an earlier decision by Deputy Senate President Jibrin Barau to pause deliberations for broader consultation.

Southern senators, under the banner of the Nigerian Southern Senators Forum (NSSF), have thrown their weight behind the reforms, describing them as critical to creating a more inclusive and equitable tax system. They called for data-driven assurances that no state would experience a drop in VAT revenues under the new framework.

The South-South Senators’ Forum also backed the bills, urging regional governors to align with legislators to refine and support the reforms.

House of Representatives Faces Deadlock

The tax reform bills have faced significant resistance in the House of Representatives, with 73 northern lawmakers rejecting them. Lawmakers from the North-East highlighted the dire economic conditions in their region, emphasizing the need for more consultation before any legislative action.

A memo signed by House Clerk Dr. Yahaya Danzaria postponed the planned debate on the bills, citing the need for broader stakeholder engagement.

Federal Government Advocates for Reform

Amid the controversy, the Director-General of the National Orientation Agency (NOA), Mallam Lanre Issa-Onilu, has defended the tax reform bills. He assured that the reforms aim to simplify the tax system, eliminate multiple taxation, and protect low-income earners. Additionally, he emphasized that revenues generated would be used to improve essential public services.

However, critics, including Kebbi State officials, argued that sensitization efforts came too late. They urged the Federal Government to prioritize stakeholder consultation before introducing bills with significant implications for citizens.

Conclusion

The regional tensions over the tax reform bills underscore Nigeria’s deep-seated economic and political divides. As consultations and debates continue, the Federal Government must address concerns from all stakeholders to ensure that the reforms foster national unity and equitable development.