Reps move closer to passing contentious tax reform bills

DDM News

The House of Representatives resumed plenary on Tuesday, February 4, with lawmakers focusing on the controversial tax reform bills.

Following a series of regional caucus meetings, there are strong indications that the Green Chamber is nearing a consensus.

Diaspora digital media (DDM) learnt that the much-anticipated second reading of the bills is now set to take place in the coming weeks.

Last week, lawmakers held closed-door caucus discussions to determine a strategy for the bills’ progress.

While the Senate had already passed the bills for a second reading, the House had faced strong resistance.

Opposition from the northern caucus contributed to the delay in the bills’ advancement within the Green Chamber.

However, recent developments suggest that lawmakers are now prepared to move forward with an amended version.

Babajimi Benson, representing Ikorodu Federal Constituency, expressed optimism after a caucus meeting, citing a growing consensus among lawmakers.

Kolawole Akinlayo, representing Moba/Ilejemeje/Ido Osi Federal Constituency, confirmed that the House is ready to pass the amended bills.

The tax reform bills include the Joint Revenue Board of Nigeria Bill, the Nigeria Revenue Service Bill, and others.

During the last attempt at a second reading, heated debates forced the leadership to halt proceedings.

Concerns over the revenue-sharing formula had been a major source of contention among lawmakers.

To address the controversy, the Nigerian Governors’ Forum (NGF) engaged the Presidential Committee on Tax Policy and Fiscal Reforms.

A compromise was reached, adjusting the percentage of Value Added Tax (VAT) revenue allocated based on derivation.

Initially set at 60%, the derivation-based allocation was reduced to 30% to ensure regional equity.

Under the new framework, 50% of VAT revenue will be shared equally among states.

The remaining 20% will be distributed based on population size across the country.

Nasarawa State Governor Abdullahi Sule stated that governors would work with their lawmakers to support the bills’ passage.

Speaker Tajudeen Abbas assured that contentious clauses would be addressed during public hearings.

The House will consider input from the NGF and other stakeholders before making a final decision.

With increased optimism, lawmakers are expected to proceed smoothly with the second reading.

If passed, the amended version of the bills will advance beyond the current legislative hurdles.

The federal government has set March 2025 as the deadline for the bills’ passage.

Taiwo Oyedele, chairman of the tax reform committee, said this timeline allows taxpayers to prepare for implementation.

The government aims to begin enforcement of the tax reforms by July 2025.

Officials believe the reforms will transform Nigeria’s economy and improve the ease of doing business.

The policies also aim to protect vulnerable citizens while strengthening revenue generation for national development.

As the House nears a decision, lawmakers must now turn optimism into concrete legislative action.

Kindly share….

For Diaspora Digital Media Updates click on Whatsapp, or Telegram. For eyewitness accounts/ reports/ articles, write to: citizenreports@diasporadigitalmedia.com. Follow us on X (Fomerly Twitter) or Facebook