Tax Reform Bill: Senator Ali Ndume Raises Red Flags Over Rapid Passage

Senator Ali Ndume

The Nigerian Senate has been abuzz with debates surrounding the swift progression of the Tax Reform Bill. At the forefront of the critique is Senator Ali Ndume, representing Borno South Senatorial District, who has voiced strong reservations about the pace and content of the bill.  

In a session reported by "Daily Trust"on Wednesday, Ndume openly objected to the reading of the bill on the Senate floor. His concerns centered on derivation and Value Added Tax (VAT)—key elements he believes warrant deeper consideration. “These are not matters that many of us can easily agree upon,” he stated, emphasizing the need for caution.  

The senator elaborated on his stance during an appearance on Channels Television’s 'Politics Today', where he questioned the urgency of the bill's passage. Drawing a stark comparison, Ndume highlighted how the Petroleum Industry Bill (PIB), a landmark piece of legislation, took over a decade to pass through the National Assembly. In contrast, the tax reform bill is being pushed at what he described as "suspicious speed," raising questions about the motives of the Executive branch.  

Key Concerns Raised by Ndume  

1. Lack of National Consultation:

   Ndume called for more extensive discussions and consultations with stakeholders nationwide before advancing the bill. He argued that this inclusive approach is crucial to ensuring that the legislation aligns with the interests of the broader Nigerian populace.  

2. Centralisation of Tax Collection:

   The Federal Inland Revenue Service (FIRS) has proposed centralising tax collection—a move Ndume believes could disrupt the existing fiscal system. He cautioned that such centralisation might marginalise states, particularly those in the North, leading to potential economic and political fallout.  

3. The Role of State Governors:

   Senator Ndume warned that if state governors, especially those from Northern regions, do not back the bill, it could face significant resistance and lead to widespread dissatisfaction.  

A Call for Prudence  

While Ndume clarified that he is not opposed to tax reforms or the president's vision for economic growth, he firmly urged a pause for reflection. “This bill should be withdrawn for further consultations,” he advised, stressing the importance of addressing foundational issues before advancing any legislation of this magnitude.  

As Nigeria continues to grapple with economic challenges, the Tax Reform Bill presents an opportunity for positive change—but only if handled with care. Senator Ndume’s call for a measured approach serves as a timely reminder of the importance of transparency, consultation, and balance in policymaking.  

 Conclusion  :

The debate surrounding the Tax Reform Bill underscores the tension between legislative efficiency and thorough governance. Senator Ndume's reservations may well resonate with many Nigerians who are wary of rushed decisions that could have far-reaching consequences.  

What do you think about the Tax Reform Bill? Should it be fast-tracked, or does it require more careful deliberation? Share your thoughts in the comments below.