Orji Kalu, the senator representing Abia North, has expressed concern over the federal government’s approach to the proposed tax reform bills, criticizing the administration for not involving key stakeholders in the ongoing discussions.
His remarks come amid growing resistance from various groups, including the Northern States Governors Forum (NSGF) and the National Economic Council (NEC), who have voiced opposition and called for further consultation on the bills.
In October, President Bola Tinubu submitted four critical tax reform bills to the National Assembly: the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.
While these reforms are seen by some as vital for improving Nigeria’s tax system, they have faced significant pushback.
Kalu, in an interview with Arise Television, emphasized that the federal government’s failure to consult with influential bodies like the NEC, NSGF, and the Council of State was a misstep.
Despite his critique, he acknowledged that the bills are fundamentally progressive and have the potential to restore fiscal federalism in Nigeria.
He also pointed out that many lawmakers have not been adequately briefed on the details of the proposals.
“The bills are very progressive and will bring fiscal federalism back to Nigeria, but the government made a mistake by not engaging with key stakeholders before introducing them,” Kalu said.
“The initiators of these bills should have consulted the National Economic Council, Governors’ Forum, and Council of State before pushing them forward.”
The Northern Governors have raised concerns about the potential impact of the bills on the balance of power between the federal and state governments, which they argue could undermine regional autonomy.
Similarly, the NEC has advised the president to withdraw the bills for more extensive consultations.
On a related note, Kalu also highlighted the importance of having outspoken senators like Ali Ndume, who represents Borno South.
Ndume has been a vocal critic of the bills, even threatening to leave the All Progressives Congress (APC) if the legislation is passed without necessary revisions.
Kalu expressed admiration for Ndume’s forthrightness, stating, “We need senators like Ndume who will raise our conscience. Democracy thrives on multiple voices, not just one.”
Kalu further clarified rumors that the administration might introduce Alpha Beta, a consultancy firm associated with Tinubu’s tenure as Lagos State governor, as a potential partner in Nigeria’s tax reform.
He dismissed the speculation, focusing instead on the urgent need for an overhaul of Nigeria’s outdated tax laws.
“The issue is not about Alpha Beta or any consulting firm; it’s about updating our laws,” Kalu stated.
“Our tax laws, and indeed many of our legal frameworks, are obsolete and need to be revamped for Nigeria to progress.”
The ongoing debate over these tax reform bills underscores the broader challenges Nigeria faces in balancing federal and state interests, as well as the need for comprehensive consultations with all stakeholders involved in shaping the nation’s fiscal policies.