The Nigerian Senate has suspended action on the controversial tax reform bills currently before it, halting the planned public hearings indefinitely. The decision follows widespread public opposition and calls for further consultations.
Deputy Senate President, Jibrin Barau, announced the suspension during a plenary session on Wednesday, stating that the Senate had instructed the Committee on Finance to delay further action on the bills until the concerns raised by the public were adequately addressed. In response to the growing agitation, the Senate has also formed a special committee to meet with the executive branch and collaborate with the Federal Government to resolve the issues surrounding the proposed tax reforms.
The tax reform bills under scrutiny include the Joint Revenue Board of Nigeria (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024; and the Nigeria Tax Bill, 2024. These bills have generated significant controversy, particularly among Northern governors, who have rejected them, describing them as anti-democratic. In light of the opposition, the National Economic Council has called for a withdrawal of the bills for further consultations.
Senator Shehu Buba (APC, Bauchi South) expressed his concerns, stating that the bills were too complex and needed thorough review by tax policy experts. He also pointed out that Northern lawmakers opposed certain provisions, particularly the proposed “derivation” formula for value-added tax (VAT) distribution, which they believe would disproportionately affect Northern states.
Further complicating the situation, President Bola Tinubu instructed the Ministry of Justice to engage with the judiciary over the matter. Deputy Senate President Barau confirmed that a meeting with the Attorney General of the Federation is scheduled to resolve the disagreements.
Barau emphasized that the Senate, as the highest legislative body in Nigeria, is committed to resolving the issues surrounding the bills through dialogue and consensus. He stated, “We have decided to set aside politics, ethnicity, and regionalism to work together on resolving the issues surrounding the tax reform bills.”
The newly formed Senate Committee on Finance, which includes key leaders from both the ruling and opposition parties, will play a crucial role in this process. Barau concluded that the Committee would pause any further public hearings or actions on the tax reform bills until the matter is resolved.
The suspension of the tax reform bills marks a significant step in addressing the concerns surrounding the proposed legislation, with both the executive and legislative branches working toward a resolution that aims to ensure national unity and avoid further divisions.
