The Senator representing Delta North Senatorial District, Ned Nwoko, has revealed ongoing efforts by Southern lawmakers to engage their Northern counterparts over the contentious tax reform bills.
The proposed bills have sparked significant debates, particularly in northern Nigeria, where fears have been raised about potential reductions in Value Added Tax (VAT) allocations.
On Tuesday, Senator Nwoko confirmed that Southern lawmakers are actively reaching out to Northern colleagues to build consensus on the bills.
The tax reform bills, which include the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill, aim to restructure the country’s tax system to promote fairness and efficiency.
However, one controversial provision—proposing a derivation-based model for VAT distribution—has been met with stiff opposition from Northern governors, traditional rulers, and other regional leaders.
Critics argue that the model could significantly reduce revenue for states with smaller economic bases, disproportionately affecting the North.
The bills, already presented to the National Executive Council (NEC) and the Federal Executive Council (FEC), are now before the National Assembly.
Despite assurances of economic growth and improved tax fairness, the proposed reforms have drawn mixed reactions across the country.
Nwoko, speaking on the move, said, “We are engaging them. The tax bills are generally a welcome development because they seek to support low-income earners and small businesses across the nation.
“They are equally pro-consumers across the board. We need more awareness amongst the populace. This is the first time that tax administration is being consolidated for easier administration with a special ombudsman to effectively determine disputed assessments.”
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