Tax Reform: Delays in Talks on Tax Bills as National Assembly Holds Caucus Meetings

Discussions on the tax reform bills currently before Nigeria’s National Assembly have been delayed due to caucus meetings among lawmakers. These bills, sent by President Bola Tinubu on September 3, include proposals for a new tax framework, better tax administration, the establishment of the Nigeria Revenue Service, and a tax tribunal. They are part of efforts to reform the country’s tax laws based on recommendations from a presidential committee.

Since their introduction, the bills have faced resistance, especially from state governors who initially called for more consultations. While some governors are now supporting the reforms, northern governors remain opposed, particularly to the distribution of Value Added Tax (VAT). The Senate has advanced the bills, but the House of Representatives is still debating them.

President Tinubu has directed the Ministry of Justice to meet with the National Assembly to find a compromise. However, progress has been slow as the House continues holding caucus meetings to finalize their positions. Senators from the South-East, including Senator Enyinnaya Abaribe, have called for broader consultations with regional stakeholders before moving forward.

In the House, lawmakers are working to address concerns within their constituencies and prevent ethnic or religious divisions in the debate. The Minority Leader, Kingsley Chinda, emphasized the need for thorough scrutiny of the bills to ensure they benefit the Nigerian people. While the bills are expected to pass the second reading, they will undergo public hearings for further input before final approval.

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