Nigerian Lawmaker Criticises Handling of Tax Reform Bill

A Nigerian lawmaker, Sada Soli, representing the Jibia/Kaita Federal Constituency in Katsina State, has voiced strong criticism over the handling of the Tax Reform Bill. 

In an interview  monitored by RadioNow, Mr. Soli accused President Bola Tinubu of receiving insufficient advice on the bill, which he argues led to a flawed draft. He further highlighted a lack of professionalism among the drafters, who mistakenly referred to bills as Acts.

“Let me help you. Let’s be fair to the president. The president is only one person and for the president to take a decision, he has to rely on certain advice. I think the president was poorly advised. People that drafted this bill, in the first place, the draft was poorly done because they were referring to the bills, the preponderance of act in these bills. When I read these bills, I knew they were poorly drafted. I knew they were not subjected to drafters, professional drafters. And then the president is an individual. We have to be fair to him. He was advised by these consultants. He was advised by those that have, uh, that feel that they have done a good job. And then it didn’t go through the normal process that it should have gone. That’s my belief. Bola Tinubu, anybody that knows his political sagacity, he’s an inclusive politician. You can see him all over this country. I have to be fair to him. And that’s when he realized this bill is capable of causing some problems, he subjected it to all scrutiny.”

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Soli raised concerns about the proposed increase in the derivation percentage. He argued that the current 20% should remain, instead of raising it to 60%, or adopting the governors’ suggestion of 30% for derivation, 50% for equality, and 20% for population. According to Soli, such an increase would not be equitable for economically disadvantaged states.

 “In my view, I think the status quo should be maintained, the 20% derivation. The 30% the governors calculated should be for derivation, 50% for equality, and 20% for population. I think for, because there is going to be a lot of money, the tax base has been expanded, so more money will come in, so I think there will be enough for derivation for those states and local governments where the emanation of these, or the headquarters of these in terms of getting away from consumption. I think they are too generous, they are too generous because we have to bring the issue of equity, equity for those states that are lagging behind in terms of economic opportunities.”

The lawmaker added that expanding the tax base would generate sufficient revenue to support derivation, eliminating the need for such drastic increases in percentage allocation. Soli emphasised that the focus should be on making the tax system more inclusive and efficient rather than resorting to redistributive measures.

This latest criticism comes amid growing debate over the Tax Reform Bill and its potential impact on the country’s federal revenue allocation.