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The Nigerian Senate has temporarily halted action on the contentious tax reform bills currently under consideration, directing its Committee on Finance to suspend all public hearings until public concerns surrounding the legislation are adequately addressed.
Deputy Senate President Jibrin Barau, presiding over the plenary on Wednesday, announced the Senate’s decision. He disclosed that a special committee has been constituted to engage with the Executive branch and collaborate with the Federal Government to address the contentious aspects of the bills.
Controversies Surrounding the Bills
The tax reform bills include the Joint Revenue Board of Nigeria (Establishment) Bill, 2024, the Nigeria Revenue Service (Establishment) Bill, 2024, and the Nigeria Tax Bill, 2024. These bills have faced significant opposition since their introduction, particularly from Northern governors, who have described them as undemocratic.
The National Economic Council (NEC) has also intervened, urging the withdrawal of the bills from the National Assembly to allow for further consultations. Senator Shehu Buba (APC, Bauchi South), speaking with the BBC Hausa Service, noted that Northern Senators had collectively agreed to recall the bills for a thorough review. He emphasized the need for expert input to address their complexity and expressed concern over the proposed derivation formula for Value-Added Tax (VAT) distribution, which he argued would disproportionately affect Northern states.
Senate’s Position on Dialogue and Resolution
In light of the growing controversies, Deputy Senate President Barau highlighted the Senate’s role as a stabilizing force in resolving national issues.
“The Senate remains a platform for dialogue and consensus. We are committed to setting aside politics, ethnicity, and regionalism to address the issues surrounding the tax reform bills collaboratively,” Barau stated.
He added that the Senate would work closely with the Executive and Judiciary to resolve the contentious areas, ensuring the bills align with national unity and progress. The Attorney General of the Federation has been invited to participate in discussions aimed at addressing legal and administrative challenges.
Next Steps
The Senate leadership, alongside its established special committee, is scheduled to meet with the Attorney General on Thursday to deliberate on areas of disagreement. In the meantime, the Senate Committee on Finance has been directed to pause all activities related to the tax reform bills until the disputes are resolved.
Special Committee Members
The committee comprises key Senate leaders, including:
- Adamu Aliero (PDP, Kebbi Central)
- Orji Uzor Kalu (APC, Abia North)
- Seriake Dickson (PDP, Bayelsa West)
- Titus Zam (Benue South)
- Abdullahi Yahaya (Kebbi)
- Adeola Olamilekan (APC, Ogun West)
- Sani Musa (APC, Niger East)
- Adetokunbo Abiru (APC, Lagos East)
The Senate reaffirmed its commitment to supporting the President’s efforts to tackle insecurity and economic challenges, emphasizing that no additional issues should compound the nation’s difficulties.
“The Senate remains committed to fostering peace, stability, and development while ensuring that tax reforms serve the best interests of all Nigerians,” Barau concluded.
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