Senator Orji Kalu Criticizes Federal Government’s Approach to Tax Reforms

Senator Orji Kalu, representing Abia North in the Senate, has criticized the federal government for excluding key stakeholders in its tax reform measures. Kalu expressed his concerns during an interview with Arise Television on Monday, highlighting the absence of the Nigeria Governors’ Forum, the Council of State, and the National Economic Council in the reform process.

Speaking on the contentious tax reform bills, Kalu remarked: “As I told you before, the bill is very progressive. It will bring back fiscal federalism. Many senators have not been briefed. I think the federal government made a mistake. The initiators of the bills would have briefed the National Economic Council, Governors’ Forum.”

The tax reform bills under review include the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill. These proposals, which have been under consideration in the National Assembly since October 2024, gained momentum last week after passing the Senate on second reading.

Despite support from economists who believe the reforms will enhance Nigeria’s revenue, opposition from key groups has cast a shadow on the process. The National Economic Council, the Northern Governors’ Forum, and prominent lawmakers like Senator Mohammed Ali Ndume have openly rejected the bills.

Kalu acknowledged the progressive nature of the reforms, which aim to restore fiscal federalism. However, he criticized the lack of consultation with critical stakeholders, calling it a misstep by the federal government.

This sentiment echoes broader concerns, as the National Economic Council and Northern Governors’ Forum recently called for the withdrawal of the bills.

Taiwo Oyedele, chairman of the Presidential Fiscal Policy and Tax Reforms Committee, addressed the controversy in earlier remarks, clarifying the rationale behind the reforms and their potential impact on Nigeria’s revenue base.

The ongoing debate underscores the complexity of implementing tax reforms in a way that balances economic progress with inclusive policymaking.