Former Deputy Senate Leader, Senator Abdul Ningi (PDP, Bauchi Central), has strongly criticized the new tax reform bills introduced by President Bola Tinubu, describing them as discriminatory and designed to favor specific states, particularly Lagos, over others.
In an exclusive interview with Vanguard, Senator Ningi accused the President of trying to exploit people’s silence and fears to push the bills through, despite their lack of inclusiveness. He argued that the proposed reforms primarily benefit Lagos and two other states while neglecting the interests of the broader Nigerian populace.
Senator Ningi outlined two fundamental objections: The reforms disproportionately favor certain states without logical justification.
“The crux of the bill lies in its discriminatory nature,” Ningi emphasized.
The National Economic Council (NEC), chaired by Vice President Kashim Shettima, unanimously rejected the reforms, yet the President has bypassed their concerns.
“It’s disturbing that, after failing to convince the NEC, the President is now attempting to push these bills through the National Assembly,” Ningi said.
Ningi urged members of the National Assembly to reject the bills, drawing parallels with the controversial third-term agenda of the past, which lawmakers ultimately discarded despite containing several positive clauses.
“This is not about North or South. The pains of Bauchi are no different from those of Anambra, Ebonyi, or Katsina. Lawmakers must stand united against these reforms for the sake of the country,” he said.
The Senator criticized the inequitable distribution of Value-Added Tax (VAT) revenues, citing an example of maize processing:
“You buy maize in Kaduna without VAT. When the maize is processed into Semovita in Lagos, VAT is collected when it is sold back in Kaduna. That VAT is returned to Lagos. Where is the fairness or ethics in this system?”
He also highlighted similar disparities in revenue allocation from PMS (petrol) sales and airtime purchases, which benefit the locations of company headquarters rather than the states where products are consumed.
Ningi suggested a broader restructuring of Nigeria’s fiscal framework, proposing a system where oil-producing communities retain their resources and pay taxes to the federal government. He accused the administration of being poorly advised and warned against taking Nigerians’ silence for granted.
“If these bills pass through the National Assembly, there will be consequences. Many will pay the price for their indifference, lack of patriotism, and outright unresponsiveness,” Ningi warned.
On September 3, 2024, President Tinubu submitted four tax reform bills to the National Assembly based on recommendations from the Presidential Committee on Fiscal and Tax Reforms, led by Taiwo Oyedele.
The bills include: Nigeria Tax Bill 2024: Establishes a fiscal framework for taxation in the country. Tax Administration Bill: Provides a legal framework for tax administration to reduce disputes. Nigeria Revenue Service Establishment Bill: Replaces the Federal Inland Revenue Service Act with the Nigeria Revenue Service. Joint Revenue Board Establishment Bill: Proposes a tax tribunal and ombudsman.
Despite some positive aspects of the reforms, Senator Ningi insists that their discriminatory nature and lack of inclusiveness make them untenable.
