Lawmakers from northern Nigeria have raised objections to four tax reform bills under review in the National Assembly, citing potential harm to the region’s fragile economy.
The concerns emerged during an interactive session on Monday between the House of Representatives and the Presidential Committee on Fiscal Policy and Tax Reforms.
The bills include the Nigeria Tax Bill 2024, which aims to reshape the country’s taxation framework; the Tax Administration Bill, proposing clearer legal structures for tax processes; the Nigeria Revenue Service Establishment Bill, which would replace the Federal Inland Revenue Service (FIRS) with a new agency; and the Joint Revenue Board Establishment Bill, introducing a tax tribunal and ombudsman.
Northern lawmakers argue that amendments, especially changes to the Value Added Tax (VAT) distribution formula, could disproportionately affect states struggling with insecurity and low productivity.
Rep. Yusuf Gagdi (APC, Plateau) highlighted how insecurity has disrupted the economies of many northern states, making VAT reforms particularly challenging for displaced and conflict-affected populations.
Similarly, Rep. Ahmed Jaha (APC, Borno) criticised the timing of the amendments, noting their potential to worsen economic disparity.
“There are regions, especially in the North, that are not economically viable due to security challenges. The proposed VAT allocation formula would treat these states unfairly,” Jaha said.
Dr. Zacch Adedeji, FIRS Chairman, acknowledged current imbalances in VAT distribution, with Lagos receiving 42% of October’s proceeds, while northern states like Borno received only 0.32%. He assured lawmakers the reforms aim to make allocations more equitable, reflecting consumption patterns across the country.
Northern lawmakers have called for a balanced approach to ensure fairness for all regions, with the debate set to continue in the National Assembly.
