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Tax reform: Senate suspends debate, panel meets AGF today
The Senate further instructed its Committee on Finance to stay action on the public hearing pending the time the agitation in the public space was addressed.
It further constituted a special committee to meet with the executive arm and work with the Federal Government to resolve the issues surrounding the Tax Reform Bills.
This was made known by the Deputy Senate President, Jibrin Barau, who presided during plenary on Wednesday.
There has been controversy over the Tax Reform Bills since its introduction to the National Assembly.
The bills are Tax Reform Bills comprising the Joint Revenue Board of Nigeria (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024 and Nigeria Tax Bill, 2024.
The northern Governors rejected the bills outright, describing them as anti-democracy.
Following this, the National Economic Council, Nigeria’s highest economic advisory body, requested that the tax reforms bill be withdrawn from the NASS for more consultations.
Oyo State Governor, Seyi Makinde, announced the council’s position after its 144th meeting chaired by Vice President Kashim Shettima at the State House, Abuja.
Makinde said council members agreed that the bill be withdrawn as some sections of the country are uncomfortable with some of its sections. He said this would allow for consensus building and understanding.
Following the various controversies that greeted the bills, the Senate on Wednesday invited the president’s Economic team led by the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, alongside the Chairman of the Federal Inland Revenue Tax, Zacchaeus Adedeji, Director General of the Budget Office, Tanimu Yakubu, into plenary to explain the Tax Reform bills in detail to lawmakers.
After the interaction with the President’s economic team, the Senate passed the bill for a second reading and transmitted it to the Senate Committee on Finance.
After the passage of the bill, the Borno State Governor, Prof Babagana Zulum, accused Oyedele’s team of rushing the enactment of the tax reforms, alleging that the bills are accompanied by misconceptions that require deeper consultations.
“On this tax issue, there are a lot of misconceptions. We felt that the VAT provision in the tax law, based on the calculations we did, would only benefit Lagos and Rivers States. We did our research and concluded that we would lose,” Zulum said.
“Why are we in a rush? We advised the Federal Government to take a pause and expunge some of the clauses that are inimical to Northern Nigeria. What we are saying is, give more time, let us do a deeper consultation to understand the nitty-gritty of this tax regime before passing it into law,” Zulum added during an interview on Channels Television.
Amidst the controversy, Senator Shehu Buba (APC, Bauchi South), in an interview with the British Broadcasting Service Hausa Service said northern Senators agreed to recall the Tax Reforms Bills.
He said, “These bills are complex and require thorough review by tax policy experts.”
He claimed that northern lawmakers strongly oppose the proposed “derivation” formula in the value-added tax distribution system, arguing that northern states would be unfairly impacted.
Also on Tuesday, the President instructed the judiciary to liaise with the legislative arm of government.
Speaking on the controversies, the Deputy Senate President noted that the delegation would meet on Thursday at the National Assembly to resolve all the issues that had caused the uproar.
Barau said, “On the tax reform bills currently before us, we acknowledge that the Senate remains the highest legislative assembly in this country.
“The Senate comprises men and women of wisdom and experience, entrusted to legislate for the peace, stability, and development of the nation.
“The Senate of the Federal Republic of Nigeria, like similar bodies globally, serves as a stabilising force in times of difficulty or disagreement. Through dialogue and consensus, the Senate has consistently provided solutions to national challenges since 1999.”
He added, “In this regard, we have decided to set aside politics, ethnicity, and regionalism to work together on resolving the issues surrounding the tax reform bills.
“In collaboration with the Executive Arm of Government, we agreed to establish a forum to identify and address contentious areas to ensure national unity and progress.
“Before the introduction of these bills, we faced numerous challenges, including insecurity and economic issues.
“The President has been working to address these problems, and we are committed to supporting these efforts while tackling global economic challenges. We also agreed that no other issues should aggravate the country’s current difficulties.”
On Tuesday, following the controversy emanating from the bills, President Tinubu directed the Ministry of Justice to work closely with the National Assembly to address “grey areas” concerning the bill with the legislature.
The Minister of Information and National Orientation, Mohammed Idris, stated this in a statement titled ‘President Tinubu committed to accountability on tax bills, directs Ministry of Justice to work with NASS on concerns.’
Mohammed said, “In line with the established legislative procedure, the Federal Government welcomes meaningful inputs that can address whatever grey areas there may be in the bill.
“In this vein, President Tinubu has already directed the Federal Ministry of Justice and relevant officials who worked on the drafts to work closely with the National Assembly to ensure that all genuine concerns have been addressed before the bills are passed.”
Barau confirmed that the Senate committee would meet with the Attorney-General of the Federation on Thursday (today).
“It has been mutually decided between the Executive and the Senate to engage the Judiciary to sort out these matters.
“The Attorney-General of the Federation will be involved in discussions to identify and resolve areas of disagreement for the nation’s benefit.
“Tomorrow (today), the committee established by the Senate, along with its leadership, will meet with the Attorney-General to address these issues.”
Barau added, “Consequently, the Senate Committee on Finance has been directed to pause further actions on public hearings and other matters related to the tax reform bills until the issues are resolved.”
However, there are indications that the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), may not be present to attend the meeting on the tax reform bill slated for today.
A senior official at the Ministry of Justice confirmed to our correspondent that the AGF was out of the country and billed to return today.
The source said, “The AGF is not in the country at the moment but he will return tomorrow (today).”
The Alaigbo Development Foundation has issued a stern warning against any attempt to deny Rivers State its constitutional right to produce the next President-General of Ohanaeze Ndigbo in the January 2025 elections.
In a statement on Wednesday, signed by its President, Nze Coleman Chukwudelunzu, the ADF described those seeking to undermine the Ohanaeze Constitution as the “number one enemies of the Igbo nation.”
Chukwudelunzu stressed the importance of adhering to constitutional principles and maintaining fairness in Ohanaeze Ndigbo’s leadership.
“Whoever wants to deny our brothers in Rivers State their right to produce the President-General of Ohanaeze Ndigbo is an enemy of Ndigbo and the Igbo nation. We must resist them,” he said.
The ADF leader identified two major challenges undermining Ohanaeze Ndigbo: external forces attempting to control Igbo affairs and internal actors seeking federal appointments at the expense of Igbo unity.
Chukwudelunzu alleged that powerful individuals from other ethnic groups had, in the past, influenced the selection of Ohanaeze President-Generals and criticised some Igbo governors for prioritising personal gains over regional interests.
“Tragically, some so-called Ohanaeze chieftains act as errand boys to governors and ministers instead of speaking truth to power as great leaders like Akanu Ibiam and Z.C. Obi once did,” he lamented.
Despite these challenges, Chukwudelunzu expressed gratitude for the resilience of patriotic Igbo leaders within the ADF, emphasising the need for Ohanaeze Ndigbo to remain a vital socio-cultural institution for Igbo unity and progress.
Reflecting on historical moments of Igbo unity, Chukwudelunzu recalled the efforts of Igbo delegates during the 1994-1995 Abuja National Constitutional Conference.
Leaders such as Okogbule Wanodi, Peter Odili, and Emeka Ojukwu stood together to defend Igbo interests against divisive agendas like the Justice Mamman Nasir Committee’s state creation plans.
“At that conference, Igbo delegates showcased an unbreakable bond of unity that Justice Mamman Nasir himself could not ignore,” Chukwudelunzu reminisced, calling for similar unity as the January elections approach.
Adopting a motion to that effect, sponsored by Senator AbdulFatai Buhari (APC Oyo North) during plenary, the Red Chamber particularly charged its Committee on Aviation to unravel the circumstances behind the incessant flight delays and cancellations to find lasting solutions to the problem.
The PUNCH exclusively reported on Wednesday that about 2,000 air passengers lost 19,274 pieces of luggage between January and June this year, according to data from the Federal.
The report stated that data obtained from the half-year report of the Nigerian Civil Aviation Authority, an agency of the Federal Government that regulates civil aviation, further indicated that 19,250 passengers were delayed for long hours during the review period.
Senator Buhari, while presenting the motion, said the problem which he noted had been on the increase in recent times, is all over the media.
“This development is worrisome as air travel is one of the most reliable, dependable, and quicker means of transportation, often undertaken for business/official purposes and to keep other scheduled appointments, which are usually time-bo,” he said.
Buhari pointed out that “the quest for economic diversification and foreign direct investment, which are parts of the current administration’s policy thrust, will remain an illusion if the country’s aviation industry falls short of the acceptable best practices across the globe.”
“Part 19 of the Nigerian Civil Aviation Authority Regulations of 2023, makes provisions for consumer protection in the civil aviation industry in Nigeria.”
He added, “However, enforcement has been an issue as most Nigerians are not even aware that they are entitled to compensation for time lost due to unnecessary delay, hence the need for the NCAA to activate this aspect of its regulation so that airline operators will sit up and be alive to their responsibilities.”
The Organised Labour in Enugu State has refuted the media reports that the new minimum wage was yet to be paid in the state, saying that the implementation of the N80,000 minimum wage, which is above the N70,000 national minimum wage, commenced in November 2024.
The workers also said that they had no plan to go on strike since. They said that observed discrepancies in consequential adjustment in the implementation of the N80,000 minimum wage had already been conveyed to Governor Peter Mbah and nursed no doubts that it would be addressed subsequently, as he had already earned workers’ trust by his commitment to their welfare since his assumption of office.
This was made known in a joint statement in the state capital on Tuesday by the Chairman, Nigeria Labour Congress, NLC, Enugu State Council, Comrade Fabian Nwigbo; Chairman of the Trade Union Congress, TUC, Comrade Ben Asogwa; and the Chairman of the state’s Joint Public Service Negotiating Council, JNC, Comrade Ezekiel Omeh.
The statement read, “The Orgaised Labour in Enugu State wishes to make clarifications in several media reports, which wrongly project Enugu among the states that are yet to pay the national minimum wage.
“We want to acknowledge the fact that the Enugu State Government paid the N80,000 minimum wage approved by the governor in the November 2024 salary.
“However, the minimum wage paid did not reflect the consequential adjustments inherent in minimum wage implementation.
“As labour leaders, we have already communicated to His Excellency the observed discrepancies and in his usual magnanimity to the welfare of workers, we strongly believe that he will address this subsequently.
“Our confidence in the governor remains intact, considering his usual dispositions to the wellbeing of workers.
“It is worthy of note that he continued to pay wage award of N25,000 he approved for workers from December 2023 till October 2024 when the new minimum wage of N80,000 was approved and consequently reflected in the November salary.
“We also recall his good faith in ensuring that local government employees were included from the onset in the new minimum wage of N80,000, having earlier upgraded them to full N30,000 minimum wage upon assumption of office after several years of waiting.
“Likewise, he approved the payment of the N1.9bn four-year accumulated leave allowances owed to teachers of public primary schools in the state and eight-month salary arrears valued at over N467m, which were also owed the academic, non-academic, and casual staff of the Enugu State College of Education Technical, ESCET, Enugu, before his assumption of office.
“Consequently, in the same culture, we trust him to address all the concerns regarding consequential adjustments in the implementation of N80,000 minimum wage.
“So, we have not gone on strike. We do not also contemplate or foresee any strike in the near future because there is no need for that yet.”
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