Senator Ali Ndume of Borno North Central has voiced strong opposition to the recently advanced tax reform bills, arguing that Nigeria needs fundamental governance reforms before implementing new tax measures. His criticism comes as the Senate passes four significant tax bills for second reading, highlighting growing tensions over the administration’s economic reform strategy.
Speaking during an appearance on Channels Television’s Politics Today, Ndume delivered a pointed critique of what he sees as misplaced priorities in Nigeria’s reform agenda. The veteran lawmaker’s opposition to the bills, which include proposals to establish the Joint Revenue Board, Tax Appeal Tribunal, and Office of the Tax Ombudsman, stems from concerns about timing, implementation, and public consultation.
At the heart of Ndume’s argument lies a stark assessment of Nigeria’s current fiscal reality. The senator highlighted that over half of the nation’s budget is consumed by recurrent expenditure and debt servicing, pointing to a fundamental imbalance in government spending. This situation, he argues, demands immediate attention before any new tax measures are introduced.
We should reform the government, not only the Executive – we need to reform the government holistically,” Ndume emphasized, drawing attention to the fact that while recurrent expenditure funds have been depleted, only 80 percent of the 2024 budget has been implemented with just weeks remaining in the year.
The senator’s criticism extends beyond mere fiscal concerns to question the democratic process behind the bills. Despite being labeled as Executive Bills, Ndume suggests these reforms lack proper consultation with state executives and the broader Nigerian public. This approach, he argues, reinforces perceptions of the Senate as a rubber-stamp institution, merely approving presidential initiatives without adequate scrutiny.
The timing of these tax reforms has emerged as a particular point of contention. Ndume argues that introducing new tax measures without first addressing fundamental governance issues could compound existing economic challenges. His position reflects growing concerns about the sequence and prioritization of economic reforms under the current administration.
The senator’s opposition comes at a crucial time as President Bola Tinubu’s government seeks to implement comprehensive tax reforms as part of its broader economic agenda. The four bills, which passed their second reading through voice votes in the Senate, represent a significant push to overhaul Nigeria’s tax system.
However, Ndume’s concerns about public buy-in highlight a critical aspect of democratic governance often overlooked in policy implementation. This is a democracy,” he reminded viewers, “it is the government of the people, for the people, and by the people,” emphasizing the need for broader consultation and consensus-building in major policy reforms.
The debate over these tax reforms reveals deeper tensions within Nigeria’s political system, particularly regarding the relationship between the executive and legislative branches. Ndume’s criticism of the bills being treated as presidential rather than executive initiatives points to concerns about the balance of power and the role of legislative oversight.
As these bills progress through the legislative process, Ndume’s opposition raises important questions about the broader reform agenda needed in Nigeria. His emphasis on prioritizing governance reform over tax reform presents an alternative vision for addressing the country’s economic challenges, one that begins with restructuring government expenditure and improving efficiency before seeking additional revenue through taxation.
The outcome of this debate could have significant implications for both the implementation of President Tinubu’s economic agenda and the broader discussion about reform priorities in Nigeria’s development strategy.