The Nigerian Senate has halted progress on the contentious tax reform bills currently under consideration, citing widespread public concern and the need for further consultations. The Senate has also directed its Committee on Finance to suspend public hearings on the bills until the issues causing public agitation are resolved.
Deputy Senate President Jibrin Barau announced the decision during Wednesday’s plenary session. He emphasized the Senate’s commitment to addressing the nation’s challenges through dialogue and collaboration.
“The Senate remains the highest legislative assembly in this country, entrusted with legislating for peace, stability, and development. We are committed to resolving the issues surrounding these bills in collaboration with the Executive Arm of Government,” Barau stated.
Bills Stir Controversy
The tax reform bills, which include the Joint Revenue Board of Nigeria (Establishment) Bill, 2024, the Nigeria Revenue Service (Establishment) Bill, 2024, and the Nigeria Tax Bill, 2024, have faced intense criticism. Northern governors and lawmakers have voiced strong opposition, arguing that the proposed reforms could harm their regions.
Senator Shehu Buba (APC, Bauchi South), speaking in a recent interview with the BBC Hausa Service, explained that Northern lawmakers are particularly concerned about the proposed changes to the value-added tax (VAT) derivation formula.
“These bills are complex and require thorough review by tax policy experts,” Buba said.
He argued that the new VAT distribution system would disproportionately affect northern states, leading to unfair outcomes.
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National Economic Council and Presidential Intervention
The National Economic Council has recommended that the bills be withdrawn from the National Assembly to allow for broader consultations. Meanwhile, President Bola Tinubu has instructed the Ministry of Justice to collaborate with the judiciary in addressing legal concerns surrounding the bills.
The Deputy Senate President revealed that the Senate had formed a special committee, including members of its leadership, to engage with the executive branch and the judiciary.
Barau explained, “Tomorrow, the committee established by the Senate will meet with the Attorney General of the Federation to address these issues. The aim is to identify and resolve contentious areas to ensure national unity and progress.”
Senate’s Stabilizing Role
Barau highlighted the Senate’s historical role as a stabilizing force in times of national disagreement.
“Since 1999, through dialogue and consensus, the Senate has consistently provided solutions to national challenges,” he said.
He assured that politics, ethnicity, and regionalism would not interfere with efforts to find a resolution.
“We agreed to establish a forum to address the contentious areas collaboratively. This will ensure that the bills do not exacerbate the country’s current economic and security challenges.”
Suspension of Further Action
As part of the Senate’s response, the Committee on Finance has been instructed to pause all activities related to the tax reform bills. Barau named several key members of the committee, including Senators Adamu Ailero (PDP, Kebbi Central), Orji Kalu (APC, Abia North), Seriake Dickson (PDP, Bayelsa West), and Adeola Olamilekan (APC, Ogun West).
Barau concluded by reiterating the Senate’s dedication to finding a resolution that benefits all Nigerians.
“We must not allow any issue to aggravate the difficulties our nation is currently facing,” he said.