Ndume renews call for withdrawal of tax reforms bill

Former Senate Chief Whip, Senator Ali Ndume, has renewed his call for the withdrawal of the controversial tax reform bills currently under consideration in the Senate, citing insufficient consultation and widespread opposition from stakeholders.

Speaking during an interview on Thursday, Ndume reiterated his stance that the bills, while potentially beneficial, should not be rushed through the legislative process without broader consensus.

Ndume criticized the manner in which the bills have been pushed forward, noting the opposition from all 36 state governors, traditional rulers, and the National Economic Council (NEC).

“It’s not about throwing away the baby with the bathwater,” he stated. “Withdraw the bills, conduct thorough consultations, and then reintroduce them. Why the hurry? If the governors and NEC collectively say this is not good, even if it has merits, their input must be considered.”

The tax reform bills, which have passed their second reading in the Senate, aim to overhaul Nigeria’s tax framework but have sparked significant controversy.

The Northern Governors Forum has urged legislators to oppose any provisions detrimental to the region’s interests.

Similarly, the NEC, chaired by Vice President Kashim Shettima and comprising the 36 governors, has called for the withdrawal of the bills, advocating for more comprehensive consultations.

Traditional Rulers and Stakeholder Views: Ndume highlighted that traditional rulers, an influential voice in policy making, have also expressed reservations, further emphasizing the need for a pause and review.

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Presidential Response: Despite this, President Bola Ahmed Tinubu has signaled his intent to proceed, suggesting that the legislative process can incorporate inputs during public hearings.

Experts are divided on the bills’ implications. Dr. Musa Ibrahim, a public finance analyst, believes the reforms, while necessary, could have been better introduced with clearer communication and stakeholder alignment. “Rushed reforms risk alienating key stakeholders and could result in implementation challenges,” he noted.

On the other hand, fiscal policy expert Taiwo Oyedele, who chairs the Presidential Committee on Fiscal Policy and Tax Reforms, argues the reforms address critical issues such as Nigeria’s low revenue-to-GDP ratio and multiple taxation, which stifle business growth.

“The withholding tax exemptions for small businesses and reduced rates for low-margin enterprises are steps in the right direction to ease the tax burden,” Oyedele said.

Introduce a new withholding tax regime exempting small businesses, producers, and farmers while reducing rates for low-profit-margin businesses.

Enhance tax administration to improve revenue collection and reduce leakages.

However, critics argue that without proper consultations, the reforms risk facing resistance, particularly in regions with divergent economic interests.

With the bills now awaiting a third reading and potential presidential assent, Ndume and other opponents continue to press for their withdrawal. The Senate’s leadership has not indicated whether the widespread calls for delay and consultation will alter the timeline.

The outcome of this debate will likely shape Nigeria’s fiscal landscape for years, determining how the country balances the need for increased revenue with economic growth and equity.