Some lawmakers from the northern region in the House of Representatives have expressed concerns about the sudden endorsement of the revised Value-Added Tax sharing formula by the Nigeria Governors Forum in the proposed tax bills, suggesting that federal lawmakers may make amendments before passing them. These bills were introduced by President Bola Tinubu in 2024 following recommendations from the Presidential Taskforce on Fiscal Policy and Tax Reforms.
The bills, including the Nigeria Tax Bill 2024, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill, have sparked debates nationwide, especially among northern leaders who are against certain provisions, such as the Value Added Tax component. The Northern Governors Forum and the National Economic Council have expressed reservations and advised for broader consultations before passing the bills.
Despite facing opposition in the House of Representatives, the bills were discussed in the Senate. However, over 70 northern lawmakers in the House hindered the debate on the general principles of the bills. Notable figures like former Vice President Atiku Abubakar and Governors Bala Mohammed and Babagana Zulum raised concerns about the potential impact of the proposed reforms on the northern economy.
Following a successful meeting between the Nigeria Governors Forum and the committee responsible for the bills, a new proposal was put forward suggesting a 50% equality-based, 30% derivation-based, and 20% population-based sharing of VAT revenue. Lawmakers like Sada Soli from Katsina State expressed readiness to support the governors’ proposal but hinted at possible amendments during the bill’s debate in the House.
While the Northern House of Representatives caucus has yet to convene on the bills, lawmakers like Joshua Gana from Niger State emphasized the need for further deliberation before a decision is reached. The Arewa Consultative Forum (ACF) has also started reviewing the proposed tax reform, aiming to provide specific recommendations within 48 hours to ensure fairness and equity in the reform initiatives.