#NASS: Plenary proceedings, House of Reps, Wed, Feb 12th, 2025
The Speaker of the House, Rt. Hon. Abbas Tajudeen presided.
After the recitation of the First stanza of the National Anthem, the National Pledge and opening prayer, the Speaker approved the votes and proceedings of Tuesday, February 11th, 2025.
ANNOUNCEMENT:
- Defection of Honourable Member:
I. Hon. Salisu Garba Koko (Kebbi) from PDP to APC
MATTERS OF URGENT PUBLIC IMPORTANCE:
- Hon. Afolabi Afuape Moruf moved a motion on the need for speedy action to address the lingering power outage at the University College Hospital, Ibadan that has led to the death of many individuals and it was seconded by Hon. Paul Nnamchi. Hon. Afolabi in leading the debate stressed the need for government to leverage on the Ibadan Electricity Distribution Company who has disconnected the hospital due to non payment of electricity bill to restore power as this has led to breakdown in treating patients. He stated that the situation has gotten so bad that the hospital now operates skeletal services. Hon. Afolabi called for a state of emergency on the matter and that the Ministry of Power and that on Health should find a lasting solution. He also called on the Medical Director of the hospital to furnish the House on ways to dealing with the prolonged problem. He then called on the House Committees on Health as well as that on Power to ensure compliance.
Hon. Garba Shehu proposed an amendment calling on the Ministry of Health as well as that on Power to ensure the provision of solar power to all National hospitals.
Hon. Harris Okonkwo also proposed an amendment calling on the Hospitals to be moved from high band tariffs where they are currently captured to lower bands, so their power consumption prices will be reduced. The motion was voted on, adopted as amended and referred to the House Committee on Power as well as that on Health Institutions.
- Hon. Chinedu Okere moved a motion on the need to investigate the killings and kidnappings of innocent citizens in communities of Owerri Federal constituency in Imo state and it was seconded by Hon. Cyril Godwin. Hon. Okere in leading the debate stated that not much has been done by security agencies to stop the lingering menace. He commended the state government for its efforts at tackling the menace. Hon. Okere expressed worry at the situation as citizens have resulted to self help to counter the actions of the bandits.
He called on the Inspector General of Police to ensure the safety and security of the citizens by the deployment of additional personnel to the area and that the House Committee on National Security and Intelligence should ensure compliance. The motion was voted on, adopted and referred to the House Committee on National Security and Intelligence.
- Hon. Saidu Miga moved a motion on the urgent need for the Federal Government to intervene in communal clashes of communities in Jigawa state and it was seconded by Hon. Bello Ambarura. Hon. Miga in leading the debate stressed the need for urgent intervention into the persistent clashes between farmers and herders which has continued to wreak havoc on the lives of the inhabitants of the communities. He stated that the clashes have become too frequent and if nothing is done urgently; it could lead to the degradation of lives, livelihoods, livestock and crop yields which are the mainstay of the people of the region.
Hon. Miga called for constructive peace building initiatives to tackle the deep rooted nature of the crisis and underlying issues. He called on the National Emergency Management Agency to provide relief to the victims and that the government should immediately provide more security personnel to the region and investigate the root causes of the clashes. He also called for continuous mediation, dialogue and lasting peace to attain sustainable prosperity. Hon. Miga called on the Ministry of Humanitarian and Disaster Management as well as that on Poverty Alleviation to visit the area and ensure rehabilitation. He called on the necessary Committees of the House to ensure compliance. The motion was voted on, adopted and referred to the House Committees on Police Affairs as well as that on Disaster Management and Preparedness.
ORDERS OF THE DAY:
BILLS:
- A Bill For an Act to Provide for the Assessment, Collection of, and Accounting for Revenue Accruing to the Federation, Federal, States and Local Governments; Prescribe the Powers and Functions of Tax Authorities, and for Related Matters (HB.1756) (Leader) (Hon. Julius Ihonvbere, Owan Federal Constituency) – Second Reading.
- A Bill for an Act to Repeal the Federal Inland Revenue Service (Establishment) Act, No.13, 2007 and Enact the Nigeria Revenue Service (Establishment) Bill to Establish Nigeria Revenue Service, charged with Powers of Assessment, Collection of, and Accounting for Revenue Accruable to the Government of the Federation and for Related Matters (HB.1757) (Leader) (Hon. Julius Ihonvbere, Owan Federal Constituency) – Second Reading.
- A Bill for an Act to Establish the Joint Revenue Board, the Tax Appeal Tribunal and the Office of the Tax Ombud, for the Harmonisation, Coordination and Settlement of Disputes arising from Revenue Administration in Nigeria and for Related Matters (HB.1758) (Leader) (Hon. Julius Ihonvbere, Owan Federal Constituency) – Second Reading.
- A Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks Relating to Taxation and Enact the Nigeria Tax Act to Provide For Taxation of Income, Transactions and Instruments, and for Related Matters (HB.1759) (Leader) (Hon. Julius Ihonvbere, Owan Federal Constituency) – Second Reading.
Hon. Julius Ihonbvere moved for the consolidation of the 4 Tax Reform Bills and it was seconded by Hon. Kingsley Chinda.
Debate:
Hon. Julius Ihonbvere moved for the second reading of the Bills and it was seconded by Hon. Kingsley Chinda. Hon. Ihonbvere in leading the debate stated that the consolidated Tax Bills are necessary for the reformation of the tax sector. He commended President Bola Ahmed Tinubu for having the courage to address the issue despite the initial opposition. He also thanked the State Governments and Legislators for seeing the need to unite in support of this laudable initiative.
Hon. Ihonbvere stated that the Bills seek a total overhaul and modernization of processes in the Tax sector to empower Nigerians to enhance their revenue generation, wealth creation and diversification. He also stated that it will promote equity and sustainable national growth. The Bill he stated will also provide the needed framework for the application of the different tax regimes in Nigeria. He stated that the huge benefits of the Tax Bills is that there is 0% VAT on critical sectors like power generation and healthcare services, reduced tax for medium wage earners and 0% tax levy for small businesses and minimum wage workers etc. He called on Honourable Members to support the passage of the Bills.
Hon. Ali Isa in contributing to the debate praised the Presidency and Leadership of the National Assembly for engaging in necessary consultations across board to bring to light the tenets of the Tax Bills. He however expressed the concerns of Nigerians regarding some of the applications of the Bills such as the need for gradual increase of VAT especially considering the economic hardship Nigerians are facing as it is sure to have ripple effects of putting the financial burdens on Nigerian consumers. He also called for more support and assistance from government for the common man and that the House should always keep the interest of Nigerians at the fore front.
Hon. Bamidele Salam observed that though painful, reforms are always essential and commended President Tinubu for bringing forth the Tax Reform Bills to bring it into conformity with the reality and current times. This he stated will ensure growth in the ease of doing business, wealth creation and diversification. He however called for the consideration of the plight and benefits of the common man who is already grappling with hard economic times. He then called for the emphasis on true Federalism and called for State and Local Governments to benefit more from the proposed reforms for the good of all Nigerians.
Hon. Stanley Adedeji Olajide stated that the House always passes Establishment Bills and those Agencies, Hospitals, Schools etc. established will need money to run. He stated that it is rarely that the opportunity to get more funds genuinely made for such vital projects comes before the House. The Tax Reforms he stated is what is needed to actualize these needs. He urged Honourable Members to support the approvals.
Hon. Ibrahim Isiaka in his contribution commended the presentation of the Bills for the plan of growing the Nigerian economy. He stated that the new reforms will ensure sanity in the procurement processes, contract bidding and award, penalties for tax evasion, ease of doing business and tax management and operation etc. Hon. Isiaka however called for caution in the application of the Bills so they are not manipulated by devious and fraudulent means.
Hon. Sada Soli stated that the Tax Reform Bills will enhance efficiency, ensure compliance and harmonize tax collection between the 3 tiers of government. He however stated that the application of the Bills will create Constitutional challenges such as some contradictions and overlapping in company income tax and the FIRS duties. He also pointed to the issues of fairness and reason in application and the technological application in the overall reach. He also stated that some provisions show ambiguity as some terms are not well interpreted.
Hon. Sada also expressed concern in equitable disbursement of funds across all tiers of government as enshrined in Section 77. He called on the relevant Committees of the House to handle the referral to work judiciously to ensure passing the best form of the Bills.
Hon. Babajimi Benson recognized the issues raised by Hon. Sada Soli on the issues of fairness, equity and justice, but stated that the meeting between the Federal and State Governments has demystified such issues. He stated that the current Tax Laws were promulgated in the 1930s and should not be what is applicable in current times.
Hon. Nnolim Nnaji in his contribution called for judicious utilization of funds generated from the new Tax regime. Such funds he stated should be channeled into developing utilities and infrastructure for Nigerians. He pleaded with the Federal and State Governments to ensure Nigerians are the main beneficiaries of these funds.
Hon. Almustapha stated that the Bills seek to address fundamental issues such as fund generation for economic development. He thanked all sides of the divide for showing understanding and support for the Tax Reform Bills and the need for generating the much needed funds for the benefit of all Nigerians.
Hon. Gboyega Isiaka commended the House for embracing positive reforms. He stated that the nation needs a reform of the Tax system as they are archaic. He stated that a more vibrant Tax system will ensure a good GDP ratio, economic development, wealth generation and management etc. He noted that there may be initial challenges, but that the outcome will definitely be positive.
Hon. Miriam Onuoha in her contribution expressed her support for the Bills as they seek to balance income and ensure progressive benefits to the common man. Section 164 she stated ensures employment stability through tax discount on income. She also stated that the Bills will also support women and entrepreneurs in small and medium businesses which will have a multiplier effect for a large percentage of the society. Hon. Miriam also praised the application formula proposed by the Federal Government for critical sectors through such agencies as TETFUND. She also called for the digitization of the process to avoid manipulation and called for the Federal iGovernment to desist from granting blanket wavers.
Hon. Abubakar Fulata stated that all the Bills except that on Tax Administration lack interpretation clauses and this will leave room for manipulation. He also called for the retaining of such agencies as TETFUND, NITDA etc. He expressed worry that the Bills have inconsistencies with the Nigerian Constitution, like the issue of double taxation and the neglecting of some precepts of an Islamic Law, especially the issue of inheritance. He also stated that the Bills also proposes to delete over 40 Acts that have not been brought before the National Assembly.
Hon. Cyril Hart stated that Section 85 which deals with production credit for such sectors as gas production need to be critically evaluated. He stated that the non-oil sector contributes more to the economy than the Oil sector, while the Oil sector makes up for most of the budget estimates and exports. He called for the development of the oil sector, especially in gas production and conversion for power.
Hon. Ademorin Kuye stated that the 2025 Appropriation Bill is before the House and the need for revenue generation cannot be overemphasized, plus the need for economic transformation and making Nigeria be more globally competitive, all these make the need for the passage of the Tax Reform Bills expedient. He stressed the need to harmonize the various Tax Bills in the nation.
Hon. Igariwey Enwo called on Members to stick to the general principles of the Bills for the debate and leave the tackling of the challenges at the Public Hearing. He called for the approval of the Bills for second reading.
Hon. George Ozodinobi in contributing to the debate stated that he was one of those who had initial misgivings on the Tax Reform Bills, but following thorough consultations he has seen the need for reforming the national Tax regime. He saluted the courage of President Tinubu for presenting the Bills and urged Members to approve them for second reading.
Hon. Abubakar Yalleman in his contribution also praised President Tinubu for bringing the Tax Reform Bills before the House. He also commended the Leadership of the House for the way and manner the former misgivings on the Bills were resolved.
Hon. Leke Abejide stated that the Tax Bills are poised to save Nigeria from economic collapse. He also praised President Tinubu for the Bills, the leadership of the House and all Nigerians for putting away their differences and accommodating the discussion of the Bills in serenity for the good of Nigerians.
Hon. Olumide Osoba stated that if Nigerians can get the application of the Bills right; there will be more funds for securing the lives and properties of Nigerians and ensuring national infrastructural development.
Hon. Ahmed Jaha stated that Section 141(1) is being contradicted by provisions of the Bill. He also stated that the welfare of Nigerians is being challenged in the area of the sharing formula as is proposed in Clause 77 of the Bill. Hon. Jaha also stated that the term of derivation is not clearly spelt out and he expressed reservation as the role of FIRS which seems to be vague in application. He also called for the clear definition of the family income tax and the issue of inheritance. He called for judicious work during the Public Hearing.
Hon. Mohammed Jajere stated that Tax reforms are common worldwide for tax administration but expressed worries of the vague nature of the application of some provisions of the Bills in relation to the Nigerian Constitution. He also called for sensitivity of the government on the application of the Bills on Nigerians. Hon. Jajejre called for the headquarters of the FIRS to be quickly completed and fitted with the needed technological equipment to effectively carry out its mandate in the provisions of the Bills.
Hon. Donald Ojogo stated that the House has a duty to ensure all technological and procedural mechanisms are effectively deployed to ensure there are no leakages or manipulations of the application of the Tax Reform Bills. He also called for judicious expenditure of the generated funds and synergy of application between all tiers of government. Hon. Ojogo praised the leadership of the House in making sure the debate on the Bills become a reality.
Hon. Bitrus Laori called for caution as certain provisions of the Bills go against the Federative unity of Nigeria as seen in 162(2) of the First Schedule and Section 75 which gives the President unrestricted powers which can be abused against Nigerians which it had initially intended to protect.
Hon. Mohammed Chiroma stated that caution needs to be taken in the implementation of the provisions of the Bills as it relates to data collection.
Hon. Ogewu Agada stated that the Bills seek to ensure self development for Nigeria and ensuring a more practical means of sustaining livelihood. He called for more diversification of the economy, especially through improved agricultural production and development.
Hon. Isa Mohammed in his contribution sought to clear the erroneous statement that the existing Laws have not been reviewed since the 1930s as they were reviewed during the President Olusegun Obasanjo regime. He wondered why it is the Federal Government seeking to reform the tax while it should be more on the purview of the states as they harbor the Nigerian people. Hon. Mohammed stated that there are about 7 strong points of concern that he seeks to present at the Public Hearing such as the issue of double taxation.
Hon. Aliyu Misau expressed concerns at some foundational provisions of the Bills as they contravene Constitutional provisions such as the revenue agencies who are left to use their generated funds to determine their own salaries which contravenes the Salary and Wages Act. He called for caution in the application of some of the provisions of the Bill so that they do not create more problems in seeking to cure existing problems. He called for caution in the clause-by-consideration in the Committee of the Whole on the provisions of the Bills.
Hon. Dominic Okafor commended the Speaker for giving Members ample time to consult with their constituents to make informed contribution. He urged Members to approve the Bills for second reading.
Hon. Midala Balami stated that looking at the insecurity in Nigeria, it behoves on government to give the security and development of Nigerians more emphasis rather than tax reforms. He called for infrastructural development and economic growth of Nigerians which is paramount. He also reiterated that there should be no increase in VAT.
Hon. Fayinka Oluwatoyin stated that the Bill will increase revenue for low income earners and businesses. He commended the leadership and Membership of the House for the way the former misgivings on the Bills were handled.
Hon. Abdussamad Dasuki raised the observation of data gathering in revenue mobilization in view of the fact that most of the funds to states and local governments are based on assumptions. He also called for a reduction of VAT not to increase it. This he said would bring succor to Nigerians who are already grappling under the burden of inflation and high cost of living. He called on the House to rise up to the challenge for the good of Nigerians.
Hon. Dennis Agbo also praised the engagements that ensured the peaceful consideration of the Tax Reform Bills and that the appointment of the Ombudsman is highly commendable. He also praised the derivation and sharing formula of the Bills and the fact that they seek to reduce financial burdens on low income earners.
Hon. Abdullahi El-Rasheed also commended the leadership of the House for the opportunity to debate and expressed concerns on 2 of the Bills and assured Nigerians that all their concerns will be addressed at the Public Hearing as well as the Committee of the Whole.
Hon. Etanebene Benedict stated that the Bills touch on the fundamentals of economic development for Nigerians and called for Members to support its approval for second reading.
Hon. Hassan Hussain stated that the proposed Tax Reform Bills have received apprehensions and concerns from his constituents such as resultant increase in foodstuffs and building materials. He queried the proposed phasing out of TETFUND and NITDA which will affect the critical sectors of education and communication respectively.
Hon. Sani Abdulraheem in his contribution stressed the need for adherence to Constitutional provisions against the provisions of the Bills especially as it relates to the functions of the FIRS and other revenue generating Agencies such as the Nigeria Customs Service and the House should ensure this is clarified before the passage of the Bills. He however supported the Bills in the broader light.
Hon. Sadiq Tafida called for the development of the informal sector and effectiveness of tax collection and stopping tax leakages instead of increasing taxes and that due consideration should be taken before approving the Bill for second reading.
Hon. Dauda Nyampa stated that one of the challenges of Nigerians concerning tax is lack of confidence in what the tax is used for despite Nigerians suffering to pay such taxes. He called for more emphasis on employment and economic empowerment of Nigerians.
Hon. Alexander Ikwechegh also praised President Tinubu for bringing the Bills before the National Assembly. He welcomed the modernizing of some aspects of Laws to cure some socioeconomic problems. He however wondered if the application of the Bills will not smack of insensitivity to the plight of the Nigerian poor, even though the Bill seeks to ensure states think outside the box. He called for balance and diligence during the Public Hearing to ensure the recommendations are positive and in tandem with the way Nigerians live.
Hon. Garba Inuwa stated that though he was one who was against the Bills at the initial point, but after due consultations, he has seen the positivity in some aspects of the Bills and called on Nigerians to ensure the best version of the Bills comes out of the Public Hearing. Hon. Inuwa appealed to President Tinubu and all applying Agencies to ensure the generated revenue should be applied to critical sectors for national economic development.
Hon. Dabo Haruna in contributing to the debate stated that the non oil sector represent most of VAT collection sources but the corruption in tax administration has left these mostly private sector participants skeptical to participate. He called for the tackling of corruption in the tax administration by ensuring the penalties for officials found culpable of corruption in tax administration.
Hon. Kingsley Chinda in his contribution stated that the Bills seek to better the Tax regime of Nigeria. He however expressed issues with some provisions of the Bills as espoused by Members and called for them to be taken care of. He also called for the gradual and systematic reduction of VAT. While appreciating the spirit of the Bills, he called for the handling of the issues in the letter. He assured Nigerians that the House would only pass the best version of the Bills.
Hon. Sa’ad Wada stated that considering the position of his leaders and constituents, it is expedient to tackle some provisions of the Bills such as section 187(1) of the provision that makes agricultural operations of rural dwellers more burdensome.
Hon. Kalejaiye Paul supported the provisions of the Bills as it seeks the redistribution of Nigeria’s wealth and enhancement of national revenue drive which will cater more for Nigerians. He called on the National Orientation Agency as well as the revenue generating agencies to ensure Nigerians are more enlightened about the provisions of the Bills.
Hon. Ishaya Lalu stated that the general principle of the Bills seeks to ensure organizations and businesses operate within a fair and reasonable tax regime that will protect their earnings as well as the national and public interests. He however called for amendments of percentages of taxes for incomes deemed lower for the proposed tax percentages so as not to suffocate struggling businesses, especially during these economically trying times. He also asked for inclusion of electricity distribution companies which deal directly with the consumers to the waivers enjoyed by electricity generators and transmitters so that the consumers do not feel the tax burden.
Hon. Clement Jimbo stated that the current Tax Laws as they are moribund and truly needed reform. He commended the President for bringing the Bills before the House and asked Honorable Members to support them.
Hon. Lanre commended the Bills as they seek economic growth and stability by reducing financial loopholes, increase collection of revenue, ease of doing business and economic investment. He stated that the Bills will ensure prosperity for future Nigerians and urged Honorable Members to support it.
Hon. Anamero Dekeri praised President Tinubu for the long overdue reform of the Tax regime of the nation. He expressed hope that by the time the Bills become Law, the imbalance previously experienced in the areas of income and expenditure will become a thing of the past. He also called for an improvement of the ratio of tax to GDP ratio and the tariffs systems.
Hon. Muktar Zakari in speaking to the issue stated that tax was recently increased and consumers bore the brunt and low incomes earners need to be protected while passing the provisions of the Bills. He stressed the need for the protection of the poor people in the constituency.
Hon. Yinka Aluko stated that the issues of tax needs to be handled carefully. He appealed to the President to increase provisions for the execution of more capital projects.
Hon. Ayodeji Alao-Akala stated that these Bills will ensure economic development of Nigerians and ensure competitive environment for businesses to thrive through innovations. He stated that the provisions of the Bill will protect youth participation in business. Hon. Ayodeji called on Honorable Members to support it.
Hon. Jeremiah Umaru called on Tax collection agencies to strengthen their mechanisms to block financial loopholes and clear the imbalance in the tax regime.
Hon. Abiodun Akinlade stated that the Bills simply seeks the improvement of the tax sector for Nigerians as is applicable worldwide. He lauded the desire of the Executive to booster state and local government revenue generating for the good of Nigerians.
Hon. Jafaru Yakubu stated that the tax reform initiative is needed for generating additional revenue needed for critical infrastructural development. He however expressed concern for the proposed increases of VAT and called for safeguarding the welfare of the Nigerian citizens.
Hon. Peter called for efficiency in tax collection and appropriation. He also called for the channeling of the generated revenue to critical infrastructure development and that the plight and burden of the poor should be considered while approving the Bills.
Hon. Alhassan Ado-Doguwa praised Honorable Members for showing patriotism and national commitment to the debate. He praised the House for initially putting on hold the Executive Tax Bills until due consultations were done with constituents and come back to debate with an informed view of their constituents who they represent. He commended President Tinubu for not interfering with the Parliamentary process which has ensured a robust debate and hoped that the best version of the Bill will be passed for the benefit of Nigerians. He also queried the proposed phasing out of TETFUND and NITDA which will affect the critical sectors of education and communication respectively. He called on Honorable Members to support the Bills.
Hon. Ahmed Idris expressed hope that the Bills when passed will address all issues generated for the benefits of Nigerians. He stated that he was part of the struggle for the establishment of the Education Trust Fund which has metamorphosed into the TETFUND and also queried the proposed phasing out of TETFUND and NITDA which will affect the critical sectors of education and communication respectively. He also stressed on the provision on inheritance as enshrined in Islamic Law and this he stated should be addressed.
Hon. James Faleke in his contribution appreciated Honorable Members for a robust, effective and patriotic debate devoid of party lines and sentiments. As the Chairman, House Committee on Finance that will be saddled with the referral of the Tax Reform Bills assured that the Committee will judiciously look into all issues raised.
The Bills were voted on, approved for second reading and referred to the House Committee on Finance.
House Adjournment:
The House at 15:27 adjourned plenary to Thursday, February 13th, 2025 by 11:00 A.M following a motion for adjournment moved by the Leader of the House, Hon. Julius Ihonbvere and seconded by the Deputy Minority Leader, Hon. Aliyu Madaki.
Courtesy: LightRay! Media Media Unit, Office of the Speaker, House of Representatives.
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