The Presidency has ramped up efforts to secure National Assembly approval for the tax reform bills, sources familiar with the matter have confirmed.
The bills, submitted to the legislature by President Bola Tinubu on October 3, have faced opposition from northern governors and lawmakers.
Reports indicate that the House of Representatives leadership has called a crucial meeting with caucus leaders to rally support for the bills, which is set to take place today.
One lawmaker confirmed the presidency’s lobbying efforts, saying, “They are reaching out to gain the support of lawmakers to ensure the bills pass.”
He further acknowledged the legitimacy of opposition from those who believe the reforms may not benefit them, describing lobbying as a normal part of the democratic process.
A presidential source defended lobbying, stating that it is a standard part of democratic governance, particularly in presidential systems like the U.S., where lobbying is a regulated activity that allows governments and interest groups to influence legislation.
The source explained that the president’s special advisers on National Assembly matters play a key role as the chief lobbyists.
The Presidency is eager to have the tax reform bills passed by year-end so they can take effect on January 1, 2025, alongside the 2025 Budget.
However, the reforms have faced strong resistance from northern governors and lawmakers, who argue that the proposed changes would disproportionately impact the northern region.
The Northern States Governors’ Forum and regional traditional leaders have opposed the amendments, particularly the shift in the distribution of value-added tax (VAT) to a derivation-based model, which they believe would harm the northern states.
Senator Abdulrahman Kawu Sumaila (Kano South) emphasized his commitment to his constituents, stating that he would not support the bills unless they align with the best interests of the people he represents. “It is the people’s views and will that will prevail in the end,” he said.
Similarly, Rep. Kwamoti Bitrus Laori (Demsa/Lamurde/Numan, Adamawa) reaffirmed his priority of ensuring his constituents’ welfare remains central to his decision-making process.
Senator Abdul Ningi (PDP, Bauchi Central), former Deputy Senate Leader, criticized the reform bills, accusing them of favouring specific states, particularly Lagos.
He questioned the fairness of the new VAT distribution system, citing examples where goods processed in Lagos are taxed and the VAT returns go to Lagos, rather than the state where the goods were originally sold.
The Northern Elders Forum (NEF) has also voiced strong opposition, calling the bills divisive and poorly planned.
The NEF criticized the lack of consultation with key stakeholders, including the National Economic Council (NEC), and warned that the current version of the Tax Reform Bill poses a threat to national unity.
Professor Ango Abdullahi, NEF convener, expressed concerns about the reform’s impact on northern states, urging lawmakers to protect the region’s interests.
The forum praised northern governors and traditional leaders for their opposition, calling it a “patriotic” stance and urging lawmakers to stand firm in their opposition to the proposed reforms.
