According to POLITICS NIGERIA, the move comes after the governors of the 19 northern states put increasing pressure on the government to reject the laws.
After 73 northern MPs objected to the legislation, the House of Representatives Clerk, Dr. Yahaya Danzaria, signed a memo canceling the scheduled debate. 48 representatives from the Northeast, 24 federal lawmakers from Kano, and Senator Aminu Tambuwal, a former governor of Sokoto State, are among those who rejected the measures.
According to the November 30, 2024, memo that suspended the debate, the rescheduling was necessary because more extensive and in-depth consultations with all pertinent parties were required.
A revised date and location for the meeting will be announced soon, according to the memo.
A leaked video of the lower house’s closed-door meeting, meantime, revealed heated arguments between the North-East legislators and opponents of the tax reform legislation. In addition to affecting the South East, South West, and certain South-Western states including Oyo, Osun, Ekiti, and Ondo, the lawmakers contended that the proposals would push the North further backward.
“As the representatives of the people, we have resolved to continue our consultation on the matter,” said a North-West lawmaker, who described the events of the closed-door session. “Things degenerated almost to a point of rebellion against the Deputy Speaker Benjamin Kalu who presided over the executive season.’
“I can infer that the Northern governors are not yet persuaded by the arguments in favor of the bills,” he continued. We are asking, “If you think this is not the case, give us more time to consult with our people,” because the bills are against the interests of the North.
“It’s suspicious how quickly they want these bills to be examined and passed. Because of this, neither our governors nor us are persuaded,” he said.
As you may remember, the Northern Governors Forum had previously opposed the measure, specifically the Value Added Tax-sharing model. The governors instructed federal lawmakers from their states to vote against the proposal during a meeting in Kaduna bills when they were debated in the National Assembly’s two houses.
Additionally, the National Economic Council, led over by Vice President Kashim Shettima, had also encouraged the Federal Government to withdraw the laws to provide room for broader talks among crucial stakeholders. However, the President turned down the recommendation.
Meanwhile, Babagana Zulum, the governor of Borno State, had voiced reservations about how quickly the legislation were being reviewed.
“Why the rush?” Zulum asked in a BBC interview. It took nearly two decades for the Petroleum Industry Bill to be passed. However, within a week, this tax reform law will be delivered and given legislative consideration. In order for our children to profit from it even after we go, it should be handled wisely and cautiously.
Zulum added that Lagos, one of the 36 states, would be the main benefactor if the four tax proposals were signed into law. He clarified, “I am not an economist,” on Channels Television’s Politics Today. However, our calculations show that this approach will solely benefit Lagos.
“I am a strong member of the APC,” he declared. Prof. Zulum might be listed as one of the two governors that supported Tinubu between 2019 and 2023. I was the first governor to openly state that the South must have the authority.
Unfortunately, a lot of people warned the president that the North was against him. Approximately 60.2% of his votes
originated in the North. There are several misunderstandings regarding this tax matter. We recommended that the Federal Government take a little break during the NEC in order to interact with stakeholders more thoroughly. We said that ourselves.
Afterwards, however, it was reversed. We are pleading for the right to be consulted in a democratic atmosphere, and I want you to think that our consultation is essential to democracy. This is the only thing that has occurred.
“I am not an economist,” Zulum continued. However, our calculations show that this approach will solely benefit Lagos. Nonetheless, we met with the Lagos State tax team and had a number of consultations with the FIRS team. Lagos stated They told me that they would lose a lot if this were to be implemented. They said, “We did our research and concluded we will lose.”
“So why are we in a rush? Not only will Lagos benefit from this scheme, but the Southeast, South-South, and even Southwest regions will be severely affected. Let’s 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 point 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.”
