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Barau: Five stages Tax Reform Bills must pass through before passage

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By Ismail Mudashir

For bills, including the contentious Tax Reform Bills, to be passed at the National Assembly, they must pass through the following stages:

A bill is a draft of a proposed law presented before the Senate and House of Representatives for deliberation. Such a bill can be given by the executive or members of the National Assembly (Senators or House of Representatives).

The four Tax Reform Bills are executive bills from the executive arm of government.

1: First Reading:

The Tax Reform Bills, like all other executive bills, scaled through the first reading when the letter by President Bola Ahmed Tinubu, GCFR, to that effect, was read on the floor of both chambers of the National Assembly ( Senate and House of Representatives).

At the first reading, the bills are introduced to senators and members of the House of Representatives.

2: Second Reading:

In the second reading, the general principles of the bills are discussed at the chambers. The bill’s sponsors will present their lead debate; other lawmakers will be allowed to speak on it afterwards.

Since the tax reform bills are from the executive branch, the Senate Leader, Michael Opayemi Bamidele, presented the lead debate last Thursday during the plenary presided over by the president of the Senate, Senator Godswill Obot Akpabio, GCON.

When a bill scales through a second reading, it is referred to relevant committees for further legislative actions.

The Tax Reform Bills were on Thursday referred to the Senate Committee on Finance chaired by Senator Sani Musa (APC, Niger State). It has six weeks to scrutinise the bills with stakeholders.

3: Committee Level

At this level, the bill would be subjected to thorough legislative scrutiny, and stakeholders would be given opportunities to contribute to shaping the draft laws.

The committee will organise a public hearing where all stakeholders, ulamas, pastors, socio-cultural, political, religious groups, experts, technocrats and other stakeholders would make input to the bills.

Before the public hearing, advertisements would be placed in newspapers while commercials would be aired on radio and television stations, requesting the submission of memoranda by stakeholders.

The committee Secretariat would aggregate the input of the stakeholders during the public hearing in addition to the memoranda submitted. This will form the committee’s report.

The input of the stakeholders is always the fulcrum of the committee’s report.
This is the level at which the Tax Reform Bills are now.

4: Third Reading.

At this point, the committee’s report would be presented and considered during the plenary in the chamber.

The chairman of the committee would present or lay the report. The chairman would read it.

After the reading, the clause-by-clause analysis of the bills will be done by a committee of the whole. All senators would vote on each clause of the bills.

If most senators vote in support of the bills, it would be passed for a third reading. If it is the other way around, it would be rejected.

The Tax Reform bills can be killed if the lawmakers vote against them.

But if the bill is passed, it would be sent to the Senate or House for concurrence, depending on its origin.

5 a: Signing of the Bill

After the bill is passed, the clerk will print and sign a final copy. The bill is issued after the appropriate presiding officer appends his signature.

5 b: President’s Assent/Signature

The final copy, as approved by both chambers, is presented to the president for his signature. The president’s signature is required to convert a bill into law, and section 58(4) of the Constitution requires the president to append his signature to the bill within 30 days of receipt.

The Deputy President of the Senate, Senator Barau I Jibrin, only presided over the plenary on Wednesday, during which the tax experts were allowed to educate the senators and indeed all Nigerians on tax reform bills.

During the sitting, Senator Barau neither supported nor kicked against the bill; instead, he emphasised an urgent need for all to be educated on the proposed laws. Nothing more.

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Akpabio, Nasarawa Senator Clash Over Port Harcourt Refinery Operations

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Godswill Akpabio ,Senate President

 

Senate President Godswill Akpabio and Senator Ahmed Aliyu Wadada (SDP, Nasarawa West) engaged in a heated exchange during Tuesday’s plenary session over the controversial operations of the Port Harcourt refinery.

Following the Nigerian National Petroleum Company Limited (NNPCL)’s announcement last week that the refinery had commenced operations, doubts have been raised, with many questioning its actual functionality, including some industry experts.

During the plenary, Akpabio revealed plans to establish an ad hoc committee to investigate the status of the refinery, a move that sparked further debate.

Senator Wadada took the floor, citing concerns over “technical issues” surrounding the refinery’s operations, and requested the Senate’s involvement to clarify the matter.

Akpabio countered, asserting that the government had already received praise for the refinery’s launch and suggested that Wadada present his concerns formally through a motion rather than via social media.

Wadada, visibly frustrated, responded, saying, “With all due respect, do not associate me with social media issues.”

The Nasarawa senator also criticized Akpabio for not addressing a revenue tax concern he raised months ago, which had not been acted upon.

In his defense, Akpabio responded, saying he had reviewed the document but reiterated that Wadada should formally present it during a plenary session.

Finally, Akpabio reaffirmed that the Senate would set up an ad hoc committee to investigate the refinery’s operational status, with findings to be discussed in a future session.

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House of Reps Orders President Tinubu to Unfreeze NSIPA’s Accounts

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The House of Representatives has issued a directive to President Bola Tinubu, urging him to mandate the Minister of Finance, Wale Edun, to unfreeze all accounts belonging to the National Social Investment Programmes Agency (NSIPA) within a 72-hour timeframe.

The resolution was reached following the adoption of a motion sponsored by the deputy speaker and 20 other lawmakers on Tuesday.

Lawmakers voiced their displeasure, arguing that despite the programmes of NSIPA being vital for poverty alleviation, youth empowerment, and economic inclusivity in Nigeria, the agency’s functionality has been hindered due to administrative bottlenecks, insufficient funding, and frozen accounts.

The president had ordered a halt of the programmes of NSIPA following allegations of financial mismanagement by overseers of the programmes.

The suspension also led to the freezing of the agency’s accounts.

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Arewa Broadcast Media Practitioner’s Forum Criticizes Proposed VAT Bill, Calls for Withdrawal

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The Arewa Broadcast Media Practitioner’s Forum, a body of media professionals from Northern Nigeria, has voiced strong opposition to the proposed Value Added Tax (VAT) bill currently before the National Assembly. In a press statement signed by its Chairman, Abdullahi Yelwa (Ajiyan Yauri), the forum expressed concerns that certain provisions of the bill are detrimental to the interests of the Northern region and the overall economic development of the nation.

The forum highlighted that while some aspects of the bill, if implemented judiciously, may generate much-needed resources for national development, the resort to ethnic and regional sentiments by some supporters of the bill is unacceptable. “We take exception to the resort to ethnic and regional sentiments by some of the supporters of the bill, who mischievously adduced ulterior motives to the legitimate concerns of the Northern Governors Forum and National Economic Council,” the statement read.

The forum emphasized that the North, like any part of the country, has the right to comment on any public policy, especially those it considers injurious to its survival. “The conceivers of the bill have shown total disregard for the concerns of a large majority of Nigerians, especially the North that is economically disadvantaged,” the forum stated.

One of the key concerns raised by the forum is the provision in the bill that imposes tax on inheritance funds, which they argue is contrary to religious doctrine and cultural norms. Additionally, the forum criticized the lopsided distribution of VAT revenue to states and the Federal Capital Territory (FCT) as proposed in the bill, calling it unjust and likely to exacerbate economic disparities between the North and other regions of the country.

The forum also noted the “fire brigade approach” by the Tax Reform Committee to engage key stakeholders after the fact, which they believe has not erased the suspicion and distrust the bill has generated. “In light of these concerns, we advise the government of President Bola Ahmed Tinubu to honourably withdraw the VAT bill for further consultations with stakeholders,” the statement urged.

The forum believes that withdrawing the bill for further consultations will promote national unity and cohesion and ensure that the VAT regime is fair, equitable, and beneficial to all Nigerians. “This approach will not only promote national unity and cohesion but also ensure that the VAT regime is fair, equitable, and beneficial to all Nigerians,” the forum concluded.

 

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