Idris: Public Debates on Tax Reform Bills Essential for Democratic Governance

•Bank Directors, House Southern caucus back proposed legislations  

•Controversial bills take centre stage as govs meet today

Chuks Okocha, Olawale Ajimotokan, Adedayo Akinwale in Abuja and Nume Ekeghe in Lagos  

The Minister of Information and National Orientation, Mohammed Idris, yesterday described the ongoing robust public debates on the Tax Reform Bills as critical components of democratic governance.

Also, weighing in on the controversial bills, the Bank Directors Association of Nigeria (BDAN) and the House Southern caucus yesterday, expressed support for the proposed legislations, describing them as a step toward addressing Nigeria’s fiscal challenges.

However, the bills currently before the National Assembly would take the centre stage as the 36 State governors meet to take position on the matter.

Idris, who spoke in Abuja, at a courtesy meeting with the management of the Progressives Institute, led by the Director General, Dr. Lanre Adedayo, noted that constructive engagement with stakeholders and the public on any policy of the government, would ensure that policies are well-aligned with the needs and aspirations of citizens.

 “Let’s take the Tax Reform for example, that has generated so much debate with some people saying that the debate is against government policy or the President and I tend to disagree.

“I think that these are healthy debates that all of us are having so that we can make this bill better. For anyone who thinks that debate and putting out policy are mutually exclusive, I think that’s wrong.

 “There will always be the opportunity to have a healthy debate so that whatever government puts forward, can be made better. In any case, this is being done for the benefit of all Nigerians. Therefore, Nigerians have the democratic right to interrogate government policies, provided the commentaries are healthy and are geared towards making the policies better,” Idris said.

 The minister stressed the tax reform proposed by President Bola Tinubu was not intended to place any part of the country at a disadvantage, but to promote inclusive growth and stimulate economic activities across the nation, in line with administration’s commitment to equitable development and prosperity for all Nigerians.

He described the reforms instituted by the President as bold and tough, but the surest way to fulfill his campaign promise of promoting progress and prosperity for all Nigerians.

 “Reforms are usually tough, usually hard, but once they are followed through, they deliver extraordinary results and we know that the direction that this government is going, we are extremely confident that all the reform processes that Mr. President has instituted, will take us to the desired destination,” he stated.

Idris expressed delight that Nigerians were beginning to see the benefits of the reforms, in the light of the recent positive indices provided by the National Bureau of Statistics (NBS) on the performance of the economy.

He commended the National Chairman of the APC, Dr. Abdullahi Umar Ganduje, for setting up the Progressives Institute, highlighting that it was envisioned to serve as the intellectual engine room of the party and the government through research on policies and programmes to be implemented or being implemented by the administration.

In his remarks, Adedayo, said for the first time in the history of political parties in Nigeria, the APC floated the Institute to serve as a think-tank and provide the intellectual foundation for capacity building, leadership recruitment, and research on policies of the administration.

 He sought the support of the minister on the forthcoming conference being organised by the Institute on skills acquisition, entrepreneurship, and challenges of development in the country.

Meanwhile, BDAN has expressed support for the proposed tax reform bills, describing them as a step toward addressing Nigeria’s fiscal challenges.

The association said this during a courtesy visit by BDAN delegates, led by its Chairman, Mustafa Chike-Obi, who engaged with the Chairman of the Presidential Fiscal Policy & Tax Reforms Committee, Taiwo Oyedele, to discuss the implications of The Nigeria Tax Bill HB. 1759 and The Nigeria Tax Administration Bill 2024 HB. 1756 on the banking industry.

In a statement, BDAN commended the Committee’s commitment to addressing Nigeria’s fiscal challenges.

The proposed reforms, according to the Association, present an opportunity to eliminate inefficiencies and lay the groundwork for a more resilient and competitive economy.

Chike-Obi reiterated BDAN’s commitment to policies that strengthen Nigeria’s financial ecosystem.

He said: “As an association, we are aligned with initiatives that promote fiscal accountability and support sustainable economic growth. While we have no fundamental issues with the proposed reforms, it is imperative to ensure that their implementation is inclusive and considers the nuances of the banking sector.”

He emphasised the importance of consultation and continuous dialogue, adding, “The banking industry thrives on stability and trust. We urge the Committee to maintain open channels of communication, ensuring that reforms are both effective and equitable. Collaboration is key to achieving the common goal of a stronger economy.”

Echoing this sentiment, BDAN’s Chief Executive, Adebukola Orenuga, highlighted the importance of stakeholder engagement in shaping fiscal reforms. “Tax policy should be a shared vision between the government and the private sector. As representatives of the banking sector, we are committed to providing constructive input that will help create an enabling environment for businesses and individuals alike,” she said.

Oyedele welcomed the Association’s input and stressed the importance of stakeholders’ active participation during the policymaking process.

“We extended invitations to public hearings earlier in the process, but unfortunately, many stakeholders did not respond. However, moving forward, we encourage more proactive engagement to ensure policies are well-rounded and inclusive,” he remarked.

Also, the Southern lawmakers in the House of Representatives have thrown their weight behind the tax reform bills. The caucus made its stand known on the controversial bills while addressing a press conference in Abuja, yesterday.

The leader of the caucus, Hon. Nicholas Mutu, however, said they are open to more dialogue and views from Nigerians.

In his submission, Hon. Babajimi Benson explained that the bills would improve Nigeria’s tax system.

His words: “The constitution gives the responsibility of making laws to the National Assembly. The National Assembly as you’re aware has two arms, Senate and House of Representatives, and we abide by the rule of law.

“The Executive can present bills and there are processes where those bills can be treated. Bills go through first, second readings and it’s passed for public hearing.

“There will be interests in one way and another. But our interest is to sit down with our brothers and at the end of the day, Nigeria will be better for it.”

Another  member of the caucus, Hon. Fredrick Agbedi said they were ready to work to ensure that they give better tax law to Nigerians.

He noted that there was nothing about like southern and northern divide, saying the National Assembly’s responsibility was to make laws for this country.

Agbedi stated: “We are open to dialogue. This is just the first process. Just to inform you that we’ve received the bills.

“In addition to what the leader of the southern caucus has said, it is the responsibility of the House of Representatives and   the Senate to receive proposals of any sort of bills from either the executive or individuals.

“Once they are received, they go through House procedures. And then the public will be invited.

“Here the President has sent an executive bill, what the southern caucus is saying is that we are ready to take up our official responsibility of making laws for the nation. And so, we welcome the bill. As we process it, inputs are made from various states and constituencies.

“So, we are in consonance with our constituents that we represent.  We are ready to work to ensure that we give better tax laws to Nigeria. That’s what we are saying.

“There’s nothing about the southern and northern divide. The National Assembly’s responsibility is to make laws for this country.”

In the meantime, the 36 State governors are billed to meet today at the Nigeria Governors’ Forum (NGF) secretariat Abuja.

THISDAY was informed that the meeting of the State Governors would be a prelude to National Economic Council (NEC) meeting scheduled to hold Thursday at the presidential villa. Abuja.

Some northern governors had mounted opposition to the bill, insisting that it would improve rush the north and make to the advantages of  Lagos and Port Harcourt.

Specifically, the northern governors and stakeholders from the three zones of the north had faulted the sharing of the Value Added Tax (VAT) in the proposed legislations.

It is expected that today’s meeting would be part of a wider consultant to be taken before the bills are passed by the National Assembly or eventually dropped.

THISDAY gathered that some tax experts are expected to address the governors by throwing more lights into the controversial tax bills.

The bills include the Joint Revenue Board of Nigeria (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024; and the Nigeria Tax Bill, 2024.