NLC Protests Exclusion of Organised Labour from Formulation of Tax Bills

•Northern group wants inheritance tax, others expunged   

•Oyedele insists all views will be considered   

•Dogara criticises northern leaders over position on proposed law

Chuks Okocha, Onyebuchi Ezigbo in Abuja and John Shiklam in Kaduna 

The Nigeria Labour Congress (NLC) yesterday kicked against the alleged exclusion of labour unions in the formulation of the new tax policy by the federal government, urging the National Assembly to halt deliberation on the proposed legislations until wider consultations were made on critical aspects.

It said that workers who are one of the critical stakeholders of any tax regime were not consulted by the initiators of the new tax reform bills, describing the said exclusion as unacceptable and as undermining the principles of tax justice.  “If labour is not at the table, it is effectively on the menu,’ it argued.

Organised labour made its position known in a communique issued after it’s National Executive Council (NEC) meeting held in Owerri, Imo state and signed by the NLC President, Joe Ajaero and General Secretary, Emmanuel Ugboaja.

NLC also described as disturbing a report that Nigerians paid a staggering N2.23 trillion in ransom to kidnappers this year alone, expressing concern over what it described as worsening insecurity in the country.

“The NEC raised alarms over the worsening insecurity in the country, referencing disturbing reports that Nigerians paid a staggering N2.23 trillion in ransom this year alone across 51.8 million recorded crime incidents. Also, 614,937 Nigerians lost their lives while 2,235,954 others were kidnapped within one year.

“This appalling state of insecurity underscores the urgent need for the government to take decisive action to safeguard lives and property, restore public confidence, and ensure the rule of law prevails. Majority of the citizens who either lost their lives or are maimed as a result are workers,” it added.

Besides, NLC decried the persistent cash scarcity in Nigeria, describing it as an unfortunate and exploitative burden on the already struggling populace. It said that the situation was unacceptable as its impact on small businesses and the informal economy exacerbates the economic woes facing the citizens. 

NLC expressed worry that Nigerians are being forced to forfeit 5 per cent of their funds each time they access cash.

Also, the four tax reform bills currently before the National Assembly took centrestage during a debate organised by the League of Northern Democrats, with suggestions on how to make the bills operational in Nigeria.

The league of northern democrats said tax on inheritance contradicts religious and traditional practices and should therefore be expunged.

Specifically, all the contributors from former northern politicians, bankers and bureaucrats spoke on the disadvantages of the tax bill.

Also, the chairman of the presidential committee on the tax bills, Taiwo Oyedeleassured the northern experts on tax issues that all views would be considered and explanations made where necessary.

However, convener of the group, Dr Ardo Umar, debunked insinuations that the group is against the administration of President Bola Tinubu, but said it is against any poor policy that would engender poverty and hardship on already poor Nigerians.

In a position paper presented  by Senator Bala Na’allah, who is the chairman of experts, he said: “We are recommending that tax on inheritance be expunged from bills because it is both against  traditional and unislamic.

“Even when the British considered tax on inheritance, it was rejected and opposed because the inheritance laws in the north is Islamic and therefore religious. It was so contentious to the extent that it was dropped’.

”We are consequently recommending the separation of the offices of the Chief Executive Officer and the Chairman of the Governing Board. The Chairman of the Governing Board when established should be occupied by a well-educated and highly experienced person in the areas of taxation, revenue generation and management, to provide for an effective oversight on the mandate and performance of the Revenue Service. The Chief Executive Officer of the Service will be a member and Secretary to the Governing Board.”

Na’allah said the distribution of the derivation allocation of October 2024 VAT collection to the 774 local governments in the country was used to undertake simple cluster analysis of the total share of all local governments in each state. 

The group recommended: ‘“Notwithstanding any formula that may be prescribed by any other law, the total revenue accruing by virtue of the operation of chapter six of the Nigeria Tax Act shall be distributed as follows:  10 per cent to the Federal Government; 55 per cent to the State Governments and the Federal Capital Territory; and 35 per cent to the Local Governments.

“This is provided that 60 per cent of the amount standing to the credit of states and local governments shall be distributed among them on the basis of derivation,” it argued.

Looking at the bills, it said there was the need to strike a balance between law and administrative regulation and monitoring procedures. 

Earlier in his speech, the chairman of League of Northern Democrats, Senator Ibrahim Shekarau said that the proposed tax reform initiative of the president was a bold attempt to address Nigeria’s long-standing challenges with fiscal inefficiency, a narrow tax base and inequities in revenue generation and allocation.

Collectively, he said that the four bills seek to broaden the tax base, simplify compliance, improve revenue collection and strengthen fiscal federalism. These reforms, if properly implemented, have the potential to transform Nigeria’s economy, unlocking opportunities for growth and development.

However, while tax reform is undoubtedly overdue, the bills, he said, have raised significant concerns, which must not be ignored.

Meanwhile, a  former speaker of the House of Representatives, Hon. YakubuDogara on yesterday lashed out at Northern leaders, especially, governors for the ‘backwardness’ of the region.

Dogara accused some of the governors of spending public resources, junketing around the globe with their family members in the name of looking for investors.

Dogara stated this in a keynote address at a Town Hall Meeting on tax reforms, organised by the Christian Awareness Initiative of Nigeria (CHAIN) for Christian leaders in the north.

According to him, once the federal allocation is shared, some governors storm bureau de change in Abuja to travel out with their families on the pretext of looking for investor. He regretted that the North had ruled the country for 40 years without bringing development to the region.

“I don’t know if you have been observant. At the end of the month when they pay federal allocation, just notice when they pay, count one to three days, if you are in the business of dealing with dollars, go to zone 4 in Abuja and see what is happening.

“Just count five more days, and check the location of the people processing our wealth in the north. I don’t want to call their names, but some of you know who and who I am talking about”, Dogara said.

He added: “If you check, 80 per cent of them are not in Nigeria, they are in Dubai, Brazil , Egypt, America. They go to so many other countries. What are they doing there, only God knows.

“If they are looking for investors and business partners after many years of junketing, after federal allocation, what have they brought home? That is where our real problem is. If you are wealthy and you want to travel, just go into the first class cabin of any aircraft, you will be shocked to see that their three or five years old child has first class seats. That is where the money is going.”

Dogora said even if the leadership of Nigeria should remain in the north till eternity it will not change anything. “If it is possible, we would have been a mini Dubai in the north having ruled for 40 years”, he argued.