Former Senate Chief Whip, Senator Ali Ndume demands that the contentious tax reform legislation now being considered in the Senate be immediately withdrawn. Before any more progress is made, Ndume, a strong opponent of the legislation, stresses the importance of thorough stakeholder discussions.
All 36 state governors and other important stakeholders have expressed their opposition to the laws, according to Ndume, who criticised the lack of appropriate participation in an interview on Thursday. He emphasises that the interests of Nigerians are undermined when the reforms are imposed without consensus.
“Withdraw the bill, conduct more consultations, and bring it back,” Ndume says. “There is no need for this rush. If traditional rulers, the National Economic Council (NEC), and governors oppose it, the Senate must respect their position.”
Despite this opposition, the bills have already passed the second reading in the Senate, leaving only the third reading and presidential assent before they become law.
Controversies Surround Tax Reform Bills
The tax reform bills face widespread criticism from various groups. The Northern Governors Forum urges lawmakers from the region to resist any legislation that could harm Northerners. Similarly, the NEC, comprising all 36 state governors and chaired by Vice President Kashim Shettima, calls for the withdrawal of the bills to allow for broader consultations.
President Bola Tinubu, however, maintains that the legislative process should proceed, stating that stakeholder inputs can be considered during public hearings.
Background on the Tax Reforms
The Presidential Committee on Fiscal Policy and Tax Reforms, chaired by Taiwo Oyedele, works to overhaul Nigeria’s tax system. The committee focuses on simplifying tax administration, reducing burdens on businesses and individuals, and boosting revenue collection to improve the country’s low revenue-to-GDP ratio.
Key recommendations include a new withholding tax regime, set to begin on January 1, which exempts small businesses, producers, manufacturers, and farmers from withholding taxes. It also reduces rates for businesses with low-profit margins.
Although the reforms seek to address systemic problems, detractors contend that extensive consultations are necessary to guarantee that they satisfy the interests of all parties involved.
