BREAKING: Presidency Increases Efforts To Lobby For Tax Reform Bills

The Presidency has intensified its efforts to convince the National Assembly to pass the tax reform bills, sources close to the matter have revealed.

The bills, which were transmitted to the National Assembly by President Bola Tinubu on October 3, have been met with resistance from northern governors and lawmakers.

According to reports, the leadership of the House of Representatives has invited caucus leaders for a crucial meeting aimed at convincing lawmakers to back the bills. The meeting is scheduled to take place today.

A lawmaker confirmed the lobbying by the Presidency.

“They are reaching out to get the by-in of lawmakers. They want us to support the bills to scale through,” the lawmaker said.

“Lobby is part of democratic process to get things done, but you should understand that pushback by those who feel the issue in contention will not favour them is also legitimate,” he added.

A source close to the presidency defended the practice of lobbying as a legitimate component of democratic governance.

“In presidential systems like the U.S., lobbying is a regulated activity that allows governments and interest groups to influence legislation.

“This is why the president has special advisers on National Assembly matters who serve as the chief lobbyists,” he said.

The Presidency is eager to get the bills passed before the end of the year, so they can take effect by January 1, 2025, alongside the 2025 Budget. However, northern governors and lawmakers are opposed to the reforms, citing concerns that they will disproportionately harm the northern region.

The Northern States Governors’ Forum and traditional rulers from the region have rejected the proposed amendments, particularly the shift in value-added tax (VAT) distribution to a derivation-based model. They argue that this will harm the northern region and other sub-national entities.

On reports of lobbying, Senator Abdulrahman Kawu Sumaila (Kano South) stated that his loyalty lies with his constituents, and he will not support the bills if they are not in the best interest of his people.

“I am not aware of any pressure, but as I told you last week, we are studying the bill as usual and liaising with our constituents and relevant stakeholders to understand their feelings and views. It is the people’s views and will that will prevail in the end. This is what will happen,” he said.

Similarly, Rep. Kwamoti Bitrus Laori (Demsa/Lamurde/Numan Federal Constituency, Adamawa) said that the welfare of his constituents remains his top priority.

Meanwhile, former Deputy Senate Leader, Senator Abdul Ningi (PDP, Bauchi Central), criticised the new tax reform bills, describing them as designed to favour specific states, particularly Lagos, over others.

“The crux of the bill lies in its discriminatory nature,” Ningi said.

“It is disturbing that, after failing to convince the NEC, the President is now attempting to push these bills through the National Assembly,” Ningi said.

“This is not about North or South. The pains of Bauchi are no different from those of Anambra, Ebonyi or Katsina. Lawmakers must stand united against these reforms for the sake of the country,” he added.

The Senator also criticised the inequitable distribution of VAT.

“You buy maize in Kaduna without VAT. When the maize is processed into Semovita in Lagos, VAT is collected when it is sold back in Kaduna. That VAT is returned to Lagos. Where is the fairness or ethics in this system?” he asked.

The Northern Elders Forum (NEF) has also voiced strong opposition to the tax reform bills, labelling them as divisive and poorly conceived. The forum expressed dissatisfaction with the lack of adequate consultation with key stakeholders, notably the National Economic Council (NEC).

Professor Ango Abdullahi, the convener of NEF, warned against policies that could marginalize the northern region. “The Tax Reform Bill, as currently conceived, is a threat to our unity and cohesion. Its suspicious manner of introduction further fuels doubts about its intentions,” he said.

The NEF commended the Northern States Governors’ Forum and traditional rulers for their opposition to the bills, calling their stance “patriotic.” The forum urged northern lawmakers to stand firm in defending the region’s strategic interests, cautioning them against any attempts to compromise their position.