Tinubu’s Tax Laws Fail Federal Character Test – Yadudu

Constitutional law expert and former presidential adviser, Professor Auwalu Yadudu, has called for a restructuring of the proposed Nigerian Revenue Service Board to ensure representation of all 36 states and the Federal Capital Territory (FCT) in line with federal character principles.  

Speaking at a public hearing on Tax Reform Bills convened by the House Committee on Finance at the National Assembly Complex, Yadudu criticized the current structure of the proposed board, which only includes ex-officio members and six geopolitical representatives.

“If you want to make it truly federal, then you should have each state represented on that board,” he stated. “The way it is currently structured does not reflect the federal character of the nation.”

Yadudu also warned against the “supremacy clause” and the repeated use of “notwithstanding” in the bills, arguing that such provisions could undermine the Nigerian Constitution.

“The act or the bill being proposed is given the supremacy status like the Constitution. Only the Nigerian Constitution has supremacy. Enacting any of these bills in a way that makes them superior to other laws would be unconstitutional,” he said.

Other stakeholders at the hearing, including the Supreme Council for Shariah in Nigeria, the Committee of FCT Imams Initiative, and the Kano State Government, also raised concerns about aspects of the proposed tax laws.

The Sharia Council, represented by Professor Ahmed Bello Dogarawa, opposed the proposed inheritance tax, arguing that it contradicts Islamic law.

“While we appreciate efforts to streamline tax laws, we cannot support a provision that contradicts deeply held religious principles. Taxing inheritance in this manner would create unnecessary tension and legal challenges,” Dogarawa stated.

The council also called for the removal of Section 4(3), Part 1, Chapter 2 of the Nigeria Tax Bill, insisting that inheritance distribution should be governed strictly by personal law, such as Sharia or customary laws.

The Committee of FCT Imams Initiative, represented by Dr. Umar Aliyu, opposed the taxation of religious institutions, warning that it would burden faith-based organizations and hinder their charitable activities.

The Kano State Government supported tax modernization but warned that certain provisions in the proposed laws could threaten state autonomy.

“We support tax reforms, but we must ensure that this process does not come at the expense of states’ constitutional rights and economic stability,” Mahmud Sagagi, a Kano State representative, said.

As the tax reform bills—the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, the Joint Revenue Board Bill, and the Nigeria Tax Bill—move forward, stakeholders are urging the National Assembly to address these constitutional, religious, and structural concerns before final passage.

Yadudu emphasized that tax administration must align with Nigeria’s constitutional framework, ensuring fairness, state representation, and adherence to fundamental rights.

“The bills should reflect the true federal nature of Nigeria. If they do not, they risk facing significant legal and social resistance,” he warned.

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