Amid Horse-Trading Over Tax Reform Bills: 2025 Budget Presentation May Suffer Further Delay
There are indications that the simmering standoff over the Tax Reform Bills may delay the presentation of the 2025 budget to the National Assembly, as it has yet to be seen over the years.
President Bola Ahmed Tinubu submitted four tax bills to the National Assembly on October 3, 2024.
Sources at the National Assembly told the press yesterday that the presidency is lobbying the members of the National Assembly to pass the four tax bills before the budget is signed into law, a failure that may affect the lawmaker’s constituency projects.
A federal lawmaker source said feelers from the presidency indicate that the administration would use the 2025 budget proposal as a bargaining chip to get the federal lawmakers to sign off on it.
The source said that by holding back the 2025 budget proposal, lawmakers would not have allocations for their constituency projects, which could affect their political chances.
The tax reform bills have remained contentious since their presentation to the National Assembly in October this year.
The bills have faced strong opposition from Northern leaders who have called for its suspension for further consultation.
Meanwhile, following a stalemate among senators, the Senate leadership suspended further parliamentary work on the Bills despite its initial passage for the first reading.
Following increased opposition to the Bills, the President has asked the attorney general of the federation and minister of justice to interface with the National Assembly to address the contentious issues arising from the bills.
However, while Northern senators have remained divided over the Bills, southern senators have recently endorsed them. However, barely 48 hours later, the Senate South-East caucus declared that it would need to widen consultations on them, casting a shadow of doubt over the bills’ wholesome acceptance by the southern lawmakers.
Meanwhile, the House of Representatives and the Senate have suspended deliberations on the bills. The Senate has been interacting with officials from the executive branch led by the attorney general of the federation and minister of justice, Lateef Fagbemi.
However, the National Assembly source alleged that the Villa, displeased with the level of opposition the bills have faced, is scheming to withhold the 2025 budget proposal to force the hand of the lawmakers to approve its passage.
The source said, “We understand that the Presidency is threatening not to send the 2025 budget unless the lawmakers agree to sign the tax reform bills. That is why, barely days before the year’s end, the 2025 budget was not presented to us.
“And you know the president has a constitutional provision to use the 2024 budget for the first three to six months of next year. The law allows for that. So we understand that there is a move to tie the budget proposal to the passage of the Tax Bills,” the source said.
He said the strategy was to stall the lawmakers’ constituency projects via zero allocations.
Although lawmakers have claimed that they are not paid the monies for constituency projects, they often make insertions in the budget for projects for their constituency, which they use for campaigns.
However, the Senate has said that the tax reform bill issues are not the reason behind the delay in budget presentation and added that it had passed the MTEF/ FSP, which is the most important in a budget cycle.
Senate spokesman Yemi Adaramodu said they lawmakers had informed the executive arm of government to do a thorough job before bringing the appropriation bill to the National Assembly.
“It will later be what it used to be,” Adaramodu said, referring to the leeway the National Assembly may be giving to the 2024 budget to operate in the first quarter of 2025.
“There is a position; the current budget can still be given three months’ leeway.
We passed a supplementary budget this year and had to harmonise them. But we don’t want it to happen as it happened the other time because it was a transition year.
“We’ve informed the executive to do a thorough job on the 2025 appropriation bill so that when it gets to us, we work on it fast.”
Adaramodu said the delay in the budget presentation had nothing to do with the four tax reform bills under review, adding, “The budget is an estimate, and the tax bills will pave the way for more revenues and block leakages.”
FG Launches Nationwide Campaign
Even though the special adviser on policy communications to the president, Daniel Bwala, could not react to inquiries yesterday, the federal government said it had launched a nationwide sensitisation campaign to address critical issues affecting the country’s development, including tax reforms, security awareness, ethical values, and public health.
The campaign, which has the theme “Promoting Awareness, Ethical Values, and National Development,” seeks to foster a more informed and united society.
During yesterday’s flag-off event in Abuja, the director-general of the National Orientation Agency (NOA), Mallam Lanre Isa-Onilu, underscored the initiative’s importance.
Isa-Onilu, who was represented by the director of the NOA FCT Directorate, Mrs IjeomaAgbanusi, emphasised the agency’s commitment to educating Nigerians about their roles in achieving sustainable national growth.
Isa-Onilu assured citizens that the government’s tax reforms were designed to ease the burden on low-income earners, saying: “Those earning very little will pay little or no taxes, helping them manage their finances better.”
He explained that the reforms are encapsulated in four key bills: Nigeria Tax Bill, which consolidates all significant taxes and repeals 11 outdated laws; Nigeria Tax Administration Bill, which provides guidelines for effective tax collection; Nigeria Revenue Service Establishment Bill which enhances accountability in tax administration and the Joint Revenue Board Establishment Bill, which coordinates tax policies across all levels of government.
Isa-Onilu highlighted the benefits of these reforms, including the elimination of double taxation, fairer tax contributions for low-income earners, simplified processes through digital platforms, and tangible development funded by tax revenues.
The NOA director-general also addressed other campaign focus areas, including World HIV/AIDS Day, with advocacy for free testing, treatment access, and efforts to combat stigma and discrimination; security awareness, by encouraging citizens to collaborate with law enforcement and remain vigilant and discouraging the Get-Rich-Quick Syndrome by promoting ethical values and rejecting fraudulent practices, especially during the festive season; and World Human Rights Day, by raising awareness of citizens’ rights and responsibilities.
He stated that the campaign calls for active participation from traditional leaders, religious groups, civil society, and media outlets which he urged the media to amplify the campaign messages to reach all Nigerians.
Isa-Onilu emphasised the need for collective efforts to achieve national development.
“Together, we can build a healthier, safer, and more ethical Nigeria. The government cannot do this alone,” he noted.
For her part, a deputy director at NOA, Mrs. Rhoda Sadus, also highlighted the critical role of Nigerians in shaping the nation’s future and addressing its challenges.
“When assessing the strength of a nation, you start with its people, not its natural resources. Nigeria’s population positions us as the Giant of Africa and a potential economic powerhouse,” she said.
Southern Reps Back Tax Reform Bills
Meanwhile, members of the House of Representatives from the 17 southern states have said the tax reform bills before the National Assembly were good for the country.
The southern caucus members in the House, led by Hon Nicholas Mutu (PDP, Delta), made their position known at a press conference in Abuja on Tuesday when the bills were welcomed.
According to the group’s leader, the southern lawmakers were open to dialogue on the proposed legislation.
“The Southern caucus of the House of Representatives, we have met and welcomed the tax reform bills with so much excitement. And at the right time, we’ll capture the missing people’s element in the bills.
“Yes, the bills are good for Nigeria and are people-arranged bills…we are open to dialogue. We have not gone beyond that. We are not saying that we are supporting the bills. I didn’t say so. We are open to dialogue. This is just the first process. But to inform you that we have received the bills, we welcome the bill, and then we are open to dialogue,” Mutu said.
On his part, Hon Fredrick Agbedi (PDP, Bayelsa) said it was the National Assembly’s responsibility to receive proposals for any bill from either the executive or individual bills.
“Once received, they go through the House procedures and processes, and the public is invited. Here, Mr. President has sent an executive bill.
“The southern caucus is saying that we are ready to take up our official responsibility of making laws for the nation. And so we welcome the bills, and as we process them, inputs are made from our various states and constituencies. Some states have already received those inputs.
“There’s nothing about southern or northern divide. The National Assembly’s responsibility is to make laws for this country. And the essence of making laws is to receive proposals. When you receive proposals, you put them through the crucible of lawmaking processes.
“At the end of the day, amendments and innovations will be brought into that proposal. And both houses will pass it, and then the president will accent to whatever amendments are done to his proposal. The caucus is ready to run with the proposal that Mr President has sent,” he said.
On his part, Hon. Babajimi Benson (APC, Lagos) said the House would adequately scrutinise the bills before passage.
“There’s no bill that has a national outlook that there won’t be interests colliding one way or another, but our job is to sit down with our brothers, find the middle course, and I’ll go back to history.
“The derivative formula, the 13 per cent being gotten by oil-producing states, started with 50 per cent. Recently, we did the PIB. We had an issue with the host community bill as well. So there’s negotiation back and forth. Nigerians will be better for it,” he said.
