Tax Reform Bills: Reps Dismiss Claims of Governors Threatening Lawmakers

The House of Representatives refutes allegations that governors are intimidating lawmakers over tax reform bills.

Less than a week after reports surfaced of governors potentially withholding tickets from federal lawmakers to compete for National Assembly seats in the 2027 general elections due to their support of the Tax Reform Bills, some legislators have refuted these allegations.

On Monday, November 18, 2024, Mr. Philip Agbese, the Deputy Spokesman for the House of Representatives, stated that several governors were threatening to withhold re-election tickets from federal lawmakers unless they withdrew their support for President Bola Tinubu’s Tax Reform Bills currently under consideration by the National Assembly.

The President submitted four tax reform bills to the National Assembly based on recommendations from the Presidential Committee on Fiscal and Tax Reforms, led by Taiwo Oyedele, for a review of existing tax laws.

They encompass the Nigeria Tax Bill 2024, anticipated to establish the fiscal framework for taxation in the country, and the Tax Administration Bill, designed to offer a clear and concise legal structure for all taxes nationwide while minimizing disputes.

Other bills include the Nigeria Revenue Service Establishment Bill, intended to replace the Federal Inland Revenue Service Act and form the Nigeria Revenue Service. Additionally, there’s the Joint Revenue Board Establishment Bill, which aims to establish a tax tribunal and appoint a tax ombudsman.

In response to the tax reform proposals, on October 29, 2024, governors from the 19 northern states rejected the proposed transition to a derivation-based model for distributing Value Added Tax. They argued that this change would disadvantage their region compared to its southern counterpart.

A few days later, the governors of all 36 states rejected the bills and requested their withdrawal to facilitate further consultation.

Chike Okafor, the representative for Ehime Mbano/Ihitte/Uboma/Obowo Federal Constituency in Imo State, stated that he is unaware of any governors threatening to withhold return tickets from lawmakers if they back the tax bills. As a member of the All Progressives Congress and hailing from Imo State—the same state as his governor—Okafor explained that he collaborates closely with him. He confirmed that their governor has not instructed them, as legislators from Imo State, to oppose the tax bills.

Remember, he was an exceptional lawmaker who served two consecutive terms in the Senate. Additionally, keep in mind that he is the Chairman of the Progressive Governors’ Forum.

Additionally, Babajimi Benson, the lawmaker for Ikorodu Federal Constituency, stated that governors likely to oppose the proposed reforms were those who had not thoroughly reviewed their contents.

Babajimi stated, “Should any governor who has reviewed this bill choose to deny a lawmaker their return ticket, it indicates that the governor hasn’t thoroughly examined the legislation. However, I trust that most governors have indeed studied the bill and are now wholeheartedly backing it. Personally, I fully endorse this measure as it’s transformative and forward-thinking; it redistributes wealth equitably without leaving any state out.”

Joshua Gana, a lawmaker from Niger State and member of the Peoples Democratic Party, downplayed any threats posed by state governors. He emphasized that it is ultimately God who decides leadership at any given time.

“According to Gana, God Almighty appoints leaders in every nation. Lawmakers running for re-election in 2027 have no reason to feel threatened. As representatives of the people, we are committed to acting solely in the best interests of Nigeria and its citizens.”

In a similar vein, Alex Ikwechegh, a member of the Labour Party from Abia State, expressed skepticism about any governor being opposed to the bills.

He stated, “I’m not aware of this and I don’t believe my governor is heading in that direction.”

Lawmakers in both the Senate and the House of Representatives are scheduled to debate the bills during plenary sessions on Tuesday, November 26.

At the same time, the APC and the Labour Party have shared differing opinions on the bills.

Bala Ibrahim, the National Publicity Director of the APC, suggested that instead of rejecting the bills outright, the National Assembly should engage in additional consultations.

The APC spokesperson also expressed disapproval of the reported threats and blackmail directed at the lawmakers, stating that such actions have no place in a democracy.

READ ALSO: North vs South: Tension Mounts Over Tinubu’s Tax Proposals as Lawmakers Resume

He stated, “Blackmail is prohibited by the constitution and in the specific form of democracy we practice in Nigeria. I believe all parties should utilize lobbying as a tool. If you have an objective you want to achieve, it’s essential to engage in lobbying.”

Advocate until you gain the trust and support of those who will be deliberating on the matter. The tax issue requires comprehensive consultation, involving all parties concerned. There is widespread concern about it, with some confusion arising as well.

“We want to approach this issue without any ulterior motives or bias towards different regions of the country. Let’s consider it with a patriotic mindset and ensure thorough examination by experts who fully understand the situation. Afterwards, we can utilize lobbying efforts effectively.”

However, Obiora Ifoh, the National Publicity Secretary of LP, expressed curiosity about why the Tinubu administration has focused on taxation and loans since its inauguration on May 29, 2023.

What I want to express is that the current government seems to be heavily reliant on imposing taxes, giving them an appearance of governing through taxation. At the same time as they increase these financial demands on citizens, they’re also taking out loans. So it raises a crucial question: where are all these funds going? Nigerians have yet to experience any tangible benefits from this approach.

The issue isn’t about taxes or the distribution of their revenue. It’s focused on appropriately utilizing what has been collected from these taxes. Allocating funds to stabilize the economy and ensure people have enough food would be beneficial. However, while we’re discussing this, they are still preoccupied with deciding when to implement the N70,000 minimum wage increase, which is causing concerns due to delays in action.

“The problem is that taxation in Nigeria is detrimental. When I last inquired, they insisted they were taxing the wealthy. However, that’s not accurate; they’re actually taxing everyone. Ultimately, taxes are added to goods and services offered by the rich in the market, forcing people to buy them with no alternatives available. Consequently, this burden inevitably falls on ordinary citizens.”

The PDP and NNPP, however, called on the National Assembly to focus on the welfare of Nigerians rather than political interests during the discussions.

Timothy Osadolor, the Deputy National Publicity Secretary of the PDP, stressed that discussions about the bills should extend beyond political party boundaries.

He emphasized that the perspective of Nigerians is paramount. Additionally, he stressed the importance for all stakeholders, irrespective of their political affiliations, to establish a taxation system that treats everyone equitably. This fairness should apply regardless of one’s origin, identity, place of residence, or religious beliefs. Fairness must truly be fair for all parties involved.

Additionally, Ladipo Johnson, the National Publicity Secretary of the NNPP, encouraged lawmakers to evaluate the bill courageously and critically for the overall benefit of all Nigerians.