The development follows mounting pressure from the 19 northern states governors for the bills to be discarded.
The planned debate was called off in a memo signed by the Clerk of the House of Representatives, Dr Yahaya Danzaria, as 73 northern lawmakers kicked against the bills. Those who rejected the bills include 48 Reps members from the North-East, 24 federal lawmakers from Kano, and a former Governor of Sokoto State, Senator Aminu Tambuwal.
The memo suspending the debate, dated November 30, 2024, stated that the rescheduling was due to the need for further and broader consultations with all relevant stakeholders.
The memo said a new date and venue for the session will be communicated in due course.
Meanwhile, a leaked video of the closed-door session of the lower chamber showed the North-East lawmakers in tense debates against the tax reform bills. The lawmakers argued that the bills would drag the North backwards and also affect other regions, including the South East, South West, and some South-Western states like Oyo, Osun, Ekiti, and Ondo.
Giving details of what transpired during the closed-door session, a lawmaker from the North-West, stated, “As the representatives of the people, we have resolved to continue our consultation on the matter,” adding that “Things degenerated almost to a point of rebellion against the Deputy Speaker Benjamin Kalu who presided over the executive session.”
He added, “From what I can deduce, the Governors of the North are not yet convinced about the arguments in favour of the bills. The bills are against the interest of the North and that is why we are saying, ‘if you think this is not the case, give us more time to consult with our people.’
“The speed with which they want these bills considered and passed is suspicious. This is why our governors are not convinced and we are not convinced either,” he noted.
It can be recalled that the Northern Governors Forum had earlier kicked against the bill, particularly the Value Added Tax-sharing template. At a meeting in Kaduna, the governors directed federal lawmakers from their respective states to vote against the bills when they came up for debate in both chambers of the National Assembly.
Additionally, the National Economic Council, presided over by Vice President Kashim Shettima, had also advised the Federal Government to withdraw the bills to create room for broader consultations among critical stakeholders. However, the President turned down the advice.
Meanwhile, Borno State Governor, Babagana Zulum, had expressed concerns over the speed at which the bills were being considered.
In an interview with BBC, Zulum said, “Why the rush? The Petroleum Industry Bill took almost 20 years before it was finally passed. But this tax reform bill is being transmitted and receiving legislative attention within a week. It should be treated carefully and with caution so that even after our exit, our children will reap its benefits.”
Zulum also stated that if the four tax bills were passed into law, only one of the 36 states – Lagos – would be the major beneficiary. He made the clarification on Channels Television’s Politics Today, saying, “I am not an economist. But based on the calculations we did, only Lagos will benefit from this scheme.”
He said, “I am a strong member of the APC. If you are to count two governors who have been in support of Tinubu from 2019 to 2023, you can mention Prof Zulum. I was the first governor to come out publicly to say that power must go to the South.
“Unfortunately, the President was told by many that the North is against him. About 60.2 per cent of his votes came from the North. On this tax issue, there are a lot of misconceptions. During the NEC, we advised the Federal Government to pause for a moment to have a deeper consultation with stakeholders. That was our own statement.
“But later on, people turned it upside down. I want you to believe that our consultation is central to democracy and in a democratic setting, we are begging for the right to be consulted. This is only what has happened.”
Zulum added, “I am not an economist. But based on the calculations we did, only Lagos will benefit from, this scheme. However, we have had a series of consultation with the FIRS team and had a meeting with the tax team of Lagos State. Lagos told me that they will lose a lot if this implemented. They said ‘We did our research and concluded we will lose.’
“Then why are we in a rush? Not only in Northern Nigeria, the Southeast, South-South and even the Southwest will be severely affected. Only Lagos will benefit from this scheme. But what we are telling them is to give us time. Why are we in a rush? Let us pause and do deeper consultation because we are in a democracy.
“We should look at the nitty-gritty of these bills before passing into law. This is our only bone of contention. And then people are saying Prof Zulum and the governors are against the president. This is a democratic setting. People want us to run a garrison democracy. Most of these monies will go to Lagos. We need more time.”