After weeks of uncertainty, the Nigerian Senate will commence a public hearing today (Monday) on the tax reform bills, while the House of Representatives will begin its own hearing on Tuesday. The bills have sparked intense debate, especially after their passage for a second reading two weeks ago.
The Chairman of the Senate Committee on Finance, Senator Sani Musa, confirmed the Red Chamber’s readiness to proceed with the hearing, stating, “We have all agreed that we are starting the public hearing on February 24 and 25. We intend to take on two of the bills each day. The Senate Committee on Finance is going to invite the general public, particularly some organisations, to a two-day public hearing on the tax reform bills. One of them is the Joint Revenue Board Establishment Fund Bill, the Nigerian Revenue Services Bill, the Nigerian Tax Administration Bill, and the Nigerian Tax Bills.”
Senator Musa, a member of the All Progressives Congress representing Niger East District, emphasised the importance of these bills to the Federal Government’s fiscal policies and economic restructuring.
“The main purpose of this is to see how the government will generate more revenues so that we’ll be able to put our country on the pedestal of advanced economies where infrastructure, education, agriculture, and virtually every sector that revolves around the economy will be adequately funded. We want to align ourselves with Mr President’s vision. Looking at the bills, we have studied them thoroughly as a committee. We have engaged with multiple stakeholders before arriving at this stage, and I believe the public hearing will go on smoothly.
“Whatever grey areas exist, Mr President has assured us that he will not interfere. It is our duty as legislators to do what is necessary for the good of the country. We are all representatives of different tribes, religions, and regions, but above all, we are Nigerians,” he explained.
Musa further revealed that key government officials, including the Minister of Finance and Coordinating Minister of Economy, Minister of Trade and Investment, Attorney-General of the Federation, Minister of Petroleum, Chairman of the Federal Inland Revenue Service, and the Statistician-General of the National Bureau of Statistics, have been invited to the hearing.
Similarly, the Speaker of the House of Representatives, Tajudeen Abbas, last week named a special committee led by the Chairman of the House Committee on Finance, Abiodun Faleke, to conduct a public hearing on the tax reform bills following their passage for a second reading.
In what appeared to be an effort to ensure broad-based discussions, Speaker Abbas included six leaders of the regional caucuses in the Finance Committee to organise and collate input during the public hearing.
Alhassan Ado-Doguwa and Nicholas Mutu, leaders of the Northern and Southern Caucuses in the House, respectively, were named to represent those regions, while Sada Soli, Fred Agbedi, Iduma Igariwey, and Ibrahim Wase will represent the North West, South South, South East, and North Central geo-political zones, respectively.
Public Hearing Open to All House Members
Although the Finance Committee has been given the mandate to spearhead the debate and gather public input on the proposed tax laws, the House Spokesperson, Akin Rotimi, clarified that all members of the House are free to participate in the hearings.
He stated, “There is a committee set up to oversee the public hearing. The committee comprises the Chairman of the House Committee on Finance, Rt Hon Abiodun Faleke, and all statutory members of the Finance Committee, which includes one person from each state, as well as co-opted members such as regional caucus leaders.
“However, all honourable members have the right to attend the public hearing as stakeholders to refine the tax laws in a way that serves the best interest of all Nigerians. It is a public event, and every member has the right to participate.”
Rotimi described public hearings as “dialogues aimed at getting feedback from the public and understanding different perspectives.” He recalled that when the bills were debated on the floor of the House, the discussions saw mass participation, with every lawmaker contributing freely.
Confirming his attendance, a committee member representing Jibia/Kaita Federal Constituency, Katsina State, Sada Soli, clarified that his opposition to the reforms was not total but was focused on specific clauses that he hoped would be addressed during the hearing.
Asked if he would attend the public hearing, Soli responded, “Of course, I will be there, but remember that I was not against the reform bills. I only had concerns about some provisions.”
Public Hearing Not an Endorsement – Opposition Lawmaker Warns
Meanwhile, an opposition lawmaker warned against assuming that the public hearing equates to an endorsement of the bills.
The lawmaker, a member of the Peoples Democratic Party who spoke anonymously due to the sensitive nature of the reforms, stressed that the House expects the Finance Committee to handle the process responsibly.
“The House will still consider the report of the Finance Committee and vote on it on a clause-by-clause basis. So, there is nothing to be excited about yet because anything can happen.
“We have already delegated our powers to the Finance Committee to work on the referral and present a report. We will be watching closely to see if they will do justice to it because there has never been a legislative bill that has generated such widespread debate, scrutiny, and dissection like the tax bills,” he said.
According to him, “The nation has taken note of all contentious clauses and other portions of the bills that require redrafting or deletion if necessary. We will wait to see if the committee addresses these observations.”
Northern Groups Divided Over Tax Reform Bills
Meanwhile, the Coalition of Northern Groups (CNG) has outrightly rejected the proposed tax bills, accusing the Federal Government of implementing policies that could “cripple” the northern economy.
The group’s National Coordinator, Jamilu Charanchi, stated that the proposed reforms would have severe negative consequences for the North if implemented. As a result, the CNG might not participate in the Senate’s public hearing.
When asked whether the coalition would attend the hearing, Charanchi responded, “I don’t think so. We reject the proposed tax reform bills in their entirety. These bills are designed to cripple the North and enrich tax collection companies. We will not allow this to happen.”
Charanchi outlined several concerns, including the increase in the Value-Added Tax (VAT) rate, alteration of the VAT sharing formula, and the potential adverse impact on education and innovation.
“The proposed VAT increase will reduce Nigerians’ purchasing power, drive inflation, and worsen poverty and unemployment. The alteration of the VAT sharing formula is also unacceptable, as it lacks clarity and may unfairly disadvantage states where VAT revenue is generated,” he argued.
As the public hearings unfold, all eyes will be on the Finance Committees of both chambers to see how they handle the widespread concerns raised by different stakeholders. The outcome of these hearings could determine whether the tax reform bills are modified to accommodate various interests or remain as initially proposed.
