Senate President Akpabio Overrules Barau on Tax Reform Bills

Senate President Akpabio Overrules Barau on Tax Reform Bills Amid National Controversy

Senate President Godswill Akpabio, contrary to the Senate’s decision on Wednesday, yesterday stated that further legislative action on the four controversial tax reform bills has neither been suspended nor withdrawn.

This online news media recall that Deputy Senate President, Jibrin Barau, who presided over the plenary on Wednesday, had stated that the lawmakers suspended public hearing and legislative work on the bills to allow for wider consultations.

Senate President Akpabio raised a 10-man committee, led by Senator Abba Moro, to engage with the Attorney General of the Federation AGF, and Justice Minister, Lateef Fagbemi, to address contentious issues in the bills.

However, the Akpabio-led Senate reaffirmed its commitment to advancing the Tax Reform Bills, yesterday, stressing that no aspect of the legislative process had been suspended or withdrawn.

Regional Support

Hoewever, senators from the South-South geopolitical zone of the country, under the aegis of South- South Senators’ Forum, threw their weight behind the tax reform bills, passed a vote confidence in Akpabio; and urged South-South governors to synergise with lawmakers to fine tune the bills and to be on the same page.

Meanwhile, the Senate has tinkered with the membership of the 10- man committee by removing the name of the Chief Whip, Senator Mohammed Monguno, as a member.

The Senate leader, Senator Opeyemi Bamidele, removed Monguno from the committee and replaced him with Senator Shehu Kaka. Senator Ali Ndume and Governor Babagana Zulum of Borno have been in the fore-front of the opposition to the bills.

Vice President Kashim Shettima, who also hails from Borno, chaired the National Economic Council, NEC, that advised the Presidency to suspend actions on the bills for wider consultations.

Barau Suspends Further Legislative Action

Barau, while announcing suspension of further legislative work on the bills, stated that the lawmakers had “decided to put politics, ethnicity, and regionalism aside to sit among ourselves and find the way forward with respect to the issues surrounding the tax reform bills.

“Before the introduction of these bills, we know we’ve been faced with several problems and insecurity that we’ve been trying to solve. The president has been trying, and we’re also working with him to solve issues about our economy, which is in line with global economic problems.

“We also agree that we shouldn’t allow anything else to aggravate our country’s problems. It is on this note that it has been agreed by the executive and also by us that there should be a forum that will sit with the Attorney General of the Federation, so we can sit down and sort out all these problems in the interest of this nation.

“It has been mutually decided between the executive and the Senate to engage the Judiciary to sort out these matters. The Attorney General of the Federation will be involved in discussions to identify and resolve areas of disagreement for the nation’s benefit.

“Tomorrow (today), the committee established by the Senate, along with its leadership, will meet with the Attorney General to address these issues.

“Consequently, the Senate Committee on Finance has been directed to pause further actions on public hearings and other matters related to the tax reform bills until the issues are resolved.”

Senate President Akpabio Reacts

However, Senate President Akpabio, stated at yesterday’s plenary that the upper chamber remained focused on its mandate to represent Nigerians’ interests and would not be intimidated by external pressures.

Against the backdrop of a point of order raised by the leader of the Senate, Senator Opeyemi Bamidele, Akpabio dismissed reports in the media suggesting that deliberations on the bills had been suspended or withdrawn.

Senate President Akpabio, dismissing any attempts to pressure the chamber, also stated: “The Senate cannot be bullied. Any reform we are convinced serves the interest of Nigerians will proceed. These bills contain provisions that are in the best interest of the public.”

The Senate leader in his remarks, equally cautioned against misinformation from social media or media reports, urging the public to focus on facts.

“We have not suspended or withdrawn deliberations on the tax reform bills. Any attempt to intimidate the Senate is undemocratic. These bills are executive communications, and only the executive arm can withdraw them. We remain steadfast in our legislative responsibilities.”

He again underscored the legislature’s independence, stating that “we don’t take orders from anyone or any office, no matter how highly placed.”

Senator Akpabio underscored the fact that the Senate was not in a hurry and would do a thorough job on the bills before the house and had, therefore, taken further legislative actions on the tax reform bills, including the formation of a special committee, representing Nigeria’s six geopolitical zones, to engage with the Attorney General of the Federation to address contentious issues.

Senate President Akpabio explained that public hearings and consultations with stakeholders, including governors, religious leaders, and business leaders, were imperative to resolve any uncertainties.

“If six weeks are insufficient, we will extend the time. We are committed to transparency and addressing all concerns,” he said.

Commending Senator Abba Moro, the chairman of the 10-man committee which commenced sitting as soon as the panel was announced on Wednesday, Akpabio: “I want to thank the senior Senator, Abba Moro, the chairman of the committee, because as soon as that announcement was made yesterday (Wednesday), he immediately started consultation.

“In fact, he had a meeting today (yesterday) that he set up to enable him abstract the process so that the chairman of the Senate Committee on Finance and members of the committee can commence public hearings either next week or as soon as practicable…And the item to be explained is that the bills are live, have not been suspended, the actions have not been suspended, the bills have not been withdrawn and the bills have passed second reading in the Senate and further legislative actions are taking place.”

South-South Senators Endorsement

In a statement by the Chairman of the Forum, Senator Seriake Dickson, PDP, Bayelsa West, the South-South senators said that having recognized the importance of tax reforms in enhancing national revenue and fostering economic stability, the forum resolved to support the Tax Reforms Bills.

Dickson said the support would be based on a comprehensive study and thorough evaluation of the content of the bills to ensure they aligned with the overall interest of Nigerians, particularly the well-being of the South-South.

The senators from Akwa Ibom, Bayelsa, Edo, Cross River, Delta, and Rivers states also passed a vote of confidence in Senate President Akpabio with regard to the tax reform bills.

15 other senators who signed the communique are the Secretary of the forum, Senator Jarigbe A. Jarigbe, Senator Barinada Mpigi Senator Adams Oshiomhole, Senator Neda Imasuen; Senator Munir Ned Nwoko, PDP, Delta North, Senator Thomas Joel-Onowakpo, Senator Aniekan Bassey, Senator Asuquo Ekpenyong and Senator Allwell Onyeso.

Others are Senator Ipalibo Banigo, Senator Benson Agadaga, Senator Konbowei Benson, Senator Eteng Jonah Williams, APC, Senator Ekong Sampson and Senator Ede Dafinone, APC, Delta Central.

The statement read: “We, the senators of the Federal Republic of Nigeria from the South-South Geopolitical Zone, met on Wednesday, December 4, 2024, to deliberate on key national issues and the role of the Senate in advancing the collective interest of the country. After extensive discussions, the following resolutions were made:

“The South-South senators unanimously agreed and passed a vote of confidence in the Senate President of the Federal Republic of Nigeria. We reaffirm our unwavering commitment to standing by him and supporting his leadership in steering the Senate toward its constitutional mandate of making laws that serve the best interests of the nation and its citizens.

“We pledge our full support to the Senate president and the leadership of the National Assembly in their efforts to ensure the effective and timely passage of legislation aimed at promoting good governance, national unity, and economic development.

“Recognizing the importance of tax reforms in enhancing national revenue and fostering economic stability, we resolved to support the Tax Reforms Bills. This support will be anchored on a comprehensive study and thorough evaluation of the content of the bills to ensure they align with the overall interest of Nigerians, particularly the well-being of the South-South region.

“The caucus calls for restraint on the part of those bent on introducing sentiments, whether regional, ethnic or tribal to a national dialogue and looks forward to robust interactions and consultations as already commenced by the Senate.”

Southern Senators Back Tax Bills

Also, Southern senators on the banner of Nigerian Southern Senators Forum, NSSF, threw their weight behind the tax reform bills, which they said “will foster a fair, equitable and more inclusive tax system and therefore deserve the support of all Nigerians.”

Chairman Senator Adetokunbo Abiru, in a joint statement with Senator Victor Umeh, vice chairman; Senator Barinada Mpigi, secretary; Senator Olubiyi Fadeyi, assistant secretary; Senator Asuquo Ekpenyong, Publicity Secretary; and Senator Kenneth Eze, treasurer, they said: “What is required now is for the Federal Government of Nigeria, through the Tax Committee, to demonstrate, using data, that no sub-national in Nigeria will be at risk of a lower VAT revenues post reforms. This will go a long way in allaying the fears currently being expressed by some states of the federation.”

Expert Perspectives

Dr. Kayode Fayemi, former Ekiti State governor, speaking on the topic: “The future and challenges of the Nigerian Nation,” admitted that the government meant well by initiating the bill.

He noted that now that the bills had passed through technocrats, state governors who were critical stakeholders must be actively carried along.

“I think the government means well and the government has done the right thing by even initiating the tax reform bills. Now, one thing you discover in governance is that good intentions are not enough. You may have a good policy that is ventilated in a bad way, which will ultimately result in failure.

“What is left for the tax reform bill is that it has not benefited from enough consultation and engagement with critical stakeholders. Once you finish with the technocratic exercise, you need to subject it to a political acceptance.

‘’If the political acceptability ratio is zero, the technocratic influence, no matter how excellent, would come to naught. But, we must not throw the baby away with the bath water.”

On revenue collection and sharing, Fayemi suggested that the sharing formula should be reviewed in favour of states, especially given the argument of devolved responsibilities to the sub-nationals.

“In the context, many of the proposals contained in the draft tax reform bills before the NASS makes sense, the main elephant in the room is the surreptitious attempt to re-centralise revenue management in a federal entity.

‘’Remaking Nigeria through devolution of powers and re-organisation of the federating units is an idea whose time has come,” he said.

Arewa Youth Movement’s Stance

Backing the tax reform, the of Arewa Youth Movement, said the move would significantly improve Nigeria’s fiscal landscape and create opportunities for economic growth, especially in their region.

The group emphasized that the bill had the potential to enhance revenue generation, promote infrastructure development, and reduce poverty and inequality in the region.

Speaking at a briefing in Abuja, yesterday, Sa’ad Muhammad, its president, said despite these benefits, northern elites, including governors, senators, and traditional leaders, have opposed the bill, expressing concerns about its potential impact.

The Arewa youths dismissed these objections, called their bluff and urged the National Assembly to expedite passage of the bills.

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