National Assembly Resumes with Focus on Tax Reform Bills Amid Regional Concerns

After a two-week recess, members of Nigeria’s National Assembly have reconvened in Abuja, with President Bola Tinubu’s tax reform bills taking center stage. Lawmakers are currently deliberating on four proposed tax bills:

• Nigeria Tax Bill 2024
• Tax Administration Bill
• Nigeria Revenue Service Establishment Bill
• Joint Revenue Board Establishment Bill

A major point of contention is the proposal to allocate 60% of value-added tax (VAT) revenue based on the principle of derivation. Critics, particularly from northern states, argue that this arrangement could disproportionately favor Lagos State, which hosts many corporate headquarters.

The Northern Governors’ Forum has reportedly directed its legislators to oppose the bills, while New Nigeria People’s Party (NNPP) presidential candidate Rabiu Kwankwaso recently voiced concerns. Kwankwaso described the bills as a plan to divert Kano State’s revenue, urging northern lawmakers to remain vigilant.

Despite the criticism, Taiwo Oyedele, the chairman of the presidential committee on tax reform, has defended the bills. According to Oyedele, the reforms are designed to benefit northern states more than Lagos. He stated in an interview that “Lagos State will be the most affected by these bills.”

However, skepticism remains among many lawmakers, and debates continue in both chambers of the National Assembly.

The National Assembly’s deliberations on the tax bills are expected to shape Nigeria’s fiscal landscape. As lawmakers examine the potential implications of the reforms, finding common ground between northern and southern stakeholders will be key to achieving a fair and sustainable tax system.