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Tax Reforms should benefit Nigerians, not politics – Hon. Lalu

Nathaniel Irobi by Nathaniel Irobi
December 28, 2024
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Tax Reforms should benefit Nigerians, not politics – Hon. Lalu
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Honourable Ishaya David Lalu is a Nigerian politician and academic, currently representing the Mangu/Bokkos Federal Constituency in the House of Representatives. In this interview with CHRISTIANA LOT, the lawmaker discussed his legislative priorities, efforts towards constituency development, and his views on key national issues, including the Nigerian Tax Administration Bill and the Medium-Term Expenditure Framework (MTEF).

Excerpts:

The Nigerian Tax Administration Bill has sparked significant debate across the country. What are your thoughts on its key provisions and how they could impact governance and economic development?

The Tax Administration Bill is critical but also contentious. It seeks to reform our tax system, which is long overdue. However, I have concerns about some of its provisions. One major issue is the excessive concentration of power in the Nigerian Revenue Service (NRS) chairman. This individual is expected to chair the Technical Committee, the Nigerian Revenue Governing Council, and the Joint Revenue Tax Board.

Such centralization of power can lead to inefficiencies or abuse. We must strike a balance by decentralizing some of these roles. For instance, while the chairman can head the Technical Committee due to its technical nature, the Governing Council requires an independent chairperson for proper oversight. Similarly, the Minister of Finance could chair the Joint Revenue Tax Board to ensure accountability.

What about the bill’s revenue allocation and VAT derivation changes? 

The bill proposes pooling all tax revenues into a single account. While this sounds efficient, it raises concerns about transparency. Citizens are right to ask: Who will manage this pool? Who will ensure proper disclosure of revenue generated? These questions must be answered before we move forward.

On VAT derivation, the shift from the point of generation to the point of consumption is also controversial. While VAT is fundamentally a consumption tax, implementing this change requires clarity to avoid mismanagement. Additionally, increasing the derivation share from 20% to 60% is excessive. A more moderate adjustment—say, to 40%—would be more equitable and prevent potential discontent among states.

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There have been concerns about trust among regions regarding tax reforms. How do you see this affecting national unity? 
Trust is indeed a major issue. During debates, some members claimed that states like Lagos would lose revenue under the new derivation formula, which isn’t accurate. Such statements only create unnecessary divisions. We need reforms that foster trust and unity, not ones that deepen regional suspicions.

Beyond the Tax Administration Bill, what are your thoughts on the Medium-Term Expenditure Framework (MTEF)? 

The MTEF is another area of concern. Its projections don’t align with economic realities. For instance, it predicts GDP growth to decline from 5.5% in 2026 to 4.5%, yet inflation is expected to reduce. Economically, slower growth often leads to higher inflation due to reduced output.

There’s also a discrepancy between the foreign exchange rates in the 2025 budget and the MTEF. The budget projects ₦1,500 per dollar, while the MTEF states ₦1,400. Such inconsistencies must be addressed to restore confidence in our economic planning.

Shifting focus, let’s discuss your legislative priorities. What key initiatives have you championed so far? 
My legislative work focuses on addressing the critical needs of my constituency and the nation. Let me highlight a few key bills:

1. Federal Medical Center in Mangu

Plateau State’s central zone lacks a tertiary healthcare provider, unlike the northern and southern zones. This bill seeks to establish a Federal Medical Center in Mangu to bridge this gap. The center will provide advanced medical care, create employment opportunities, and serve as a training hub for healthcare professionals.

The bill has made remarkable progress, and I’m optimistic that it will soon become a reality. This project will significantly reduce the travel burden on residents seeking tertiary healthcare and improve overall health outcomes.

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2. National Highland Crops and Vegetable Research Institute in Bokkos

Agriculture is the lifeblood of my constituency, particularly in Bokkos, where crops like sweet and Irish potatoes, strawberries…… thrive. However, farmers face challenges such as poor yields and crop diseases.

This bill aims to establish a research institute dedicated to improving crop varieties, enhancing disease resistance, and introducing innovative farming techniques. The institute will boost agricultural productivity, strengthen food security, and contribute to the national GDP.

3. Federal College of Nursing

Plateau State currently lacks a federal nursing or midwifery institution. This bill proposes establishing a Federal College of Nursing to address the shortage of healthcare workers. The institution will provide quality training, reducing the manpower deficit in our healthcare system.

4. Constitutional Amendment for Supreme Court Representation

Currently, Section 230(1)(b) of the Constitution limits Supreme Court justices to 21, which doesn’t reflect federal character. My amendment seeks to expand this to 37, ensuring every state and the Federal Capital Territory has representation. This will enhance equity, public trust, and the court’s efficiency in handling cases.

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Your role involves more than lawmaking. How have you approached oversight and infrastructural development? 

As Deputy Chairman of the House Services Committee, I oversee National Assembly management. Transparency and accountability are central to my work.

In my constituency, I prioritized continuity by allowing my predecessor to complete 2023 budget projects while preparing for my initiatives in 2024. For instance, I secured ₦1.5 billion to establish a Federal Science and Technical College in Mangun. Construction begins in January 2025, with an additional ₦1 billion included in the 2025 budget.

We’re also addressing connectivity issues by constructing a road linking Mangu and Bokkos. This project will improve trade, relationships, and access to essential services between these communities.

Agriculture and food security are critical in Nigeria. What steps have you taken to address these in your constituency? 

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Agriculture is vital to our people. This year, I distributed 10,000 packs of fertilizer across 30 wards. This initiative has significantly boosted soil quality and crop yields, directly benefiting farmers.

Food security is tied to stability. A hungry community is more likely to face insecurity. By supporting agriculture, we’re not just improving livelihoods but also fostering peace.

Security remains a pressing concern. How have you worked to improve safety in your constituency? 

Security starts at the grassroots. I organized the first-ever conflict resolution and capacity-building program for traditional institutions in Mangu and Bokkos.

The program trained traditional leaders in communication, information management, and alternative dispute resolution. By strengthening local intelligence networks, we’ve significantly reduced insecurity and fostered peace in our communities.

Education is a recurring theme in your initiatives. Can you elaborate on your achievements? 

Education is foundational to development. We’ve established four boarding schools in Mangu and Bokkos, improving access to quality education.

Additionally, I oversaw the construction of six fully furnished classroom blocks at JSS MBAR in Bokkos, completed within six months. These projects ensure our children have the resources they need to succeed academically.

Finally, as we approach the festive season, how do you connect with your constituents during this time? 

Last Christmas, we distributed over 4,200 bags of rice to churches and stakeholders, ensuring everyone could celebrate. This year, we’re expanding our efforts with more initiatives, including free medical treatments.

In 2024, we treated over 24,000 people in a week. By 2025, I aim to reach 72,000 individuals in three weeks. These efforts reflect my commitment to improving lives and making every celebration meaningful for our people.

What drives you as a leader? 
My greatest motivation is touching lives meaningfully. Whether it’s through legislation, infrastructure, healthcare, or agriculture, my goal is to serve with integrity and commitment. Leadership is about making a difference, and I’ll continue to work tirelessly for the progress of Mangu and Bokkos.

Tags: tax reforms
Nathaniel Irobi

Nathaniel Irobi

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