The Secretary to the Government of the Federation, Senator George Akume, has refuted allegations that northerners are against the controversial Tax Reform Bills currently before Nigeria’s National Assembly. Speaking during a televised interview on Sunday, Akume insisted that consultations with northern leaders, religious figures, and senior citizens revealed broad support for the measures.
“People say it’s against a certain section. I come from that part of the section, and I am 100 per cent supportive of these bills,” Akume declared. “These bills have nothing to do with any one section of this country. It’s not proposed against the North. I am also a northerner.”
The Tax Reform Bills, including the Joint Revenue Board of Nigeria (Establishment) Bill, the Nigeria Revenue Service (Establishment) Bill, and the Nigeria Tax Bill, all proposed for 2024, have ignited fierce debate across the country. Critics claim the reforms are poorly timed and disproportionately target vulnerable Nigerians, while proponents argue they are crucial for the nation’s fiscal future.
Defending the Reforms
Akume highlighted the reforms’ pro-poor provisions, such as exempting individuals earning less than ₦800,000 annually from personal income tax and waiving company tax for small businesses generating less than ₦550 million in revenue. Additionally, he emphasized exemptions for critical sectors such as education and healthcare.
“It is also pro-growth,” Akume explained. “These bills are nationalistic and designed to support our people, especially those at the lower end of the income scale.”
Addressing concerns over Value-Added Tax (VAT), Akume noted that the federal government had restructured VAT revenue distribution to allocate 55 per cent to states and 35 per cent to local governments, leaving just 10 per cent for the federal government. This adjustment, he argued, would benefit northern states with larger numbers of local governments.
Lingering Divisions in the Senate
Despite Akume’s assurances, divisions persist within the Senate, particularly among Northern Caucus lawmakers, some of whom remain sceptical about the bills’ timing and content. Senator Ali Ndume, representing Borno South, reiterated his call for the executive to withdraw the proposals to allow for broader consultation and refinement.
“This issue of VAT and derivation is one of the major issues in the bills. Also, why introduce a taxing system instead of solving critical issues like problems with the budget?” Ndume questioned. “Reforms must be prioritised, timed correctly, and receive the buy-in of Nigerians.”
Ndume also dismissed claims of disunity among northern senators, challenging proponents of the bills to state their support publicly. “We are not divided. Northern senators who are in support of the bills should come out openly and bear their fathers’ names,” he said.
Executive Reassures Amid Senate Deliberations
President Bola Tinubu has directed the Federal Ministry of Justice to engage with federal lawmakers to resolve contentious issues. The Senate subsequently constituted a special committee to liaise with Attorney-General of the Federation (AGF) Lateef Fagbemi, SAN. However, progress has been slow, with reports suggesting the AGF was unavailable for a planned meeting last week.
As lawmakers await the committee’s findings, some remain optimistic about finding common ground. “The bills are good, but we need the faulty areas to be addressed,” a senator told reporters on condition of anonymity.
A Nation on Edge
With Nigeria’s economy under strain, the tax reform debate underscores the delicate balance between fiscal policy and public sentiment. While the proposed changes aim to boost revenue and support economic growth, critics warn of the potential for political unrest if they are perceived as burdensome or unfair.
For now, the nation’s eyes remain fixed on the Senate, where the fate of the Tax Reform Bills—and the political unity of Nigeria’s regions—hangs in the balance.
