Senators Clash Over Tinubu’s Tax Reform Bills

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Senators Mohammed Ndume (APC-Borno) and Shehu Sani have voiced opposing views on President Bola Tinubu’s proposed tax reform bills currently under consideration by the National Assembly. While Ndume deems the bills poorly timed amidst Nigeria’s economic hardships, Sani defends them as essential steps toward fairer tax administration and increased revenue.

In a statement released Monday, Senator Ndume, former Senate Chief Whip, argued that the reforms are insensitive to the struggles many Nigerians face.

“The general sentiment is that Nigerians are not in a position to pay additional taxes. Right now, people can’t even afford basic necessities. Let them survive before we ask for more taxes,” Ndume stated, questioning the rationale behind introducing tax reforms during a period of economic instability.

Conversely, former Senator Shehu Sani, who represented Kaduna Central from 2015 to 2019, asserted that the bills hold significant benefits for Nigerian citizens and the economy. Sani highlighted a provision allowing value-added tax (VAT) to be collected by the host states of companies, rather than pooled into a single account for nationwide distribution. He noted that this would create a fairer distribution of tax revenue, particularly benefiting states that host large companies.

“The bills represent a comprehensive effort to streamline tax administration and enforcement, which will generate and protect revenue for both the country and the states,” Sani argued.

Sani, also a civil rights advocate, added that the reforms would dismantle systemic corruption linked to tax waivers often exploited by corporate interests. According to him, the bills do not aim to increase taxes, reduce jobs, or favour any region over another, but rather to modernise Nigeria’s outdated tax system and ensure fairer revenue allocation.

President Tinubu submitted the four-bill tax reform package to the National Assembly in October. The bills include the Nigeria Tax Bill, the Nigeria Revenue Service Establishment Bill, the Tax Administration Bill, and the Joint Revenue Board Establishment Bill.

The reform package, if passed, promises a shift towards a more structured, simplified tax system intended to boost transparency and enhance the nation’s revenue capabilities, though its timing and public reception remain divisive among policymakers and citizens alike.