Tax reform bills: Bill not suspended, only President can withdraw it — Senate
…Invites Governors against bill to participate in public hearings
By Seun Ibiyemi
Senate President Godswill Akpabio has clarified that the four tax reform bills sent by President Bola Tinubu to the National Assembly have neither been suspended nor withdrawn.
Akpabio responded to criticism from state governors opposed to the bills, urging them to present their concerns at the upcoming public hearing organised by the National Assembly, rather than airing grievances on television. He stressed that the Senate, under his leadership, would not tolerate intimidation, as lawmakers are fulfilling their constitutional duties in the interest of the nation.
The Senate President explained that the formation of a committee to meet with a federal government delegation regarding the controversial bills does not equate to suspension or withdrawal of the legislation.
Akpabio made the statement during Thursday’s plenary in response to Senate Leader Opeyemi Bamidele’s complaint regarding misreported media coverage. Bamidele noted that some media outlets had wrongly claimed that the bills had been suspended following the announcement of a committee to liaise with the federal government.
However, Akpabio confirmed that the bills, having already passed their second reading, are still being actively considered by the Senate. “The actions have not been suspended. The bills have not been withdrawn. And the bills have passed second reading in the Senate,” he stated.
Deputy Senate President Barau Jibrin, who presided over Wednesday’s plenary, had announced the formation of an ad hoc committee to meet with the federal government delegation, led by the Attorney General and Minister of Justice, Lateef Fagbemi, to address contentious aspects of the bills. Jibrin also suggested that the finance committee postpone the planned public hearing until after the meeting.
Contrary to this suggestion, Akpabio’s statement on Thursday made it clear that the finance committee’s work would continue as scheduled.
Senate Leader Bamidele reiterated that the bills remain alive in the Senate, undergoing discussions at various levels. He also pointed out that, as executive bills, they could not be withdrawn by the Senate but only by the executive. He reassured the public that the legislative process is ongoing and called for patience and understanding.
Bamidele added that the National Assembly would not succumb to intimidation. “Any attempt from any quarter to intimidate the parliament would be undemocratic, and we will not allow ourselves to be distracted,” he said. “But we will encourage consensus and discussions at all levels, and we cannot be bullied into adopting a certain procedure.”
…Akpabio reshuffles committee to meet with presidential delegation
The Senate has made adjustments to the membership of the committee tasked with meeting a federal government delegation to address concerns raised regarding the tax reform bills currently under review.
Senate President Godswill Akpabio announced the changes during Thursday’s plenary while the lawmakers were adopting the votes and proceedings of Wednesday’s session. Mr Akpabio revealed that Senate Chief Whip, Tahir Monguno, would be removed from the committee and replaced by Kaka Shehu, the senator representing Borno Central Senatorial District.
Although both Monguno and Shehu are from Borno State, the decision was made to ensure appropriate representation of the North-East region.
The committee, originally constituted on Wednesday during a plenary chaired by Deputy Senate President Barau Jibrin, was formed to liaise with the federal government delegation, headed by the Minister of Justice and Attorney General of the Federation, Lateef Fagbemi.
The nine-member committee was initially led by Senate Minority Leader Abba Moro, a member of the opposition Peoples Democratic Party (PDP), and included Monguno among its members. It was also announced that principal officers of the Senate would attend the meetings.
However, during Thursday’s plenary, Mr Akpabio raised concerns, pointing out that the agreement made at a closed-door session before the bills passed second reading had excluded principal officers from the meetings. He emphasised that this decision had been made for the sake of transparency.
Mr Akpabio then proposed that Senator Kaka Shehu replace Monguno to represent the North-East’s interests and that the inclusion of principal officers be removed. He put the proposal to a vote, which was supported by the majority of senators through voice votes.
Following this, Akpabio instructed Senator Abba Moro, the committee chairman, to implement the changes and replace Monguno with Shehu.
“So please, replace Senator Monguno with Senator Kaka Shehu, and delete the principal officers. Senator Abba Moro, you are still the chairman, and continue your work, and then you’ll revert to the Senate,” he said.
…Gumi backs Tinubu, says the proposals are a wake-up call for northern leaders
Meanwhile, Ahmad Gumi, a Kaduna-based Islamic cleric, has expressed support for President Bola Tinubu’s proposed tax reform bills, describing them as a wake-up call for northern Nigerian leaders to focus on developing their region.
Mr Gumi argued that the tax reform bills would generate more economic opportunities than the existing tax system, which he claimed promotes multiple taxation. He made these comments on two separate occasions in Kaduna on Tuesday and Wednesday, with videos of the conversations shared on his Facebook page.
The bills in question are the Joint Revenue Board of Nigeria (Establishment) Bill, 2024 (SB.583); the Nigeria Revenue Service (Establishment) Bill, 2024 (SB.584); the Nigeria Tax Administration Bill, 2024 (SB.585); and the Nigeria Tax Bill, 2024 (SB.586).
Gumi suggested that many of the bills’ critics had not properly reviewed their provisions, and were instead amplifying false claims spread by uninformed interest groups.
He lamented that the debate surrounding the bills had become overly politicised, asserting that northern leaders should be more focused on addressing the region’s development challenges.
“We should be debating why our region is backward and why industries and banks are going bankrupt, not attacking the tax bills,” he said.
Gumi also questioned why industries had not been developed in northern states like Kaduna and Kano, particularly highlighting the situation in Kakuri, where only breweries remain operational.
He further noted that some critics were wrongly focusing on the VAT sharing formula in the bills, which had sparked significant debate. “I heard people saying Lagos will benefit more from the new VAT sharing formula. This should not be the main point of contention. Our leaders should not be saying this. When the corporate headquarters were moved to Lagos, where are the banks’ headquarters in Kaduna or Kano?” he asked.
“You allowed the population to remain in poverty. You are shouting over the tax reform bills, but where are our industries?”
Mr Gumi also welcomed the provisions in the bills that exempt low-income earners from paying taxes, suggesting that this should extend to all low-cadre workers, including security personnel, as it would significantly benefit the population.
He praised the president’s efforts to reform the tax collection system, arguing that continuing with the old system would be detrimental due to the problem of multiple taxation.
“The attempt of the president to reform the collection system is commendable,” Gumi said. “Continuing with the old system would not be good for the country.”
