- Special committee set to meet executive branch to address contentious areas.
- Northern governors and lawmakers oppose VAT formula in proposed bills.
- Senate prioritizes national unity over regional disagreements.
The Nigerian Senate has put a hold on the tax reform bills currently under review, directing the Committee on Finance to pause public hearings until public discontent is addressed.
During the plenary session on Wednesday, Deputy Senate President Jibrin Barau announced the decision and emphasized the Senate’s commitment to fostering dialogue with the executive branch. A special committee has been constituted to work with the Federal Government to resolve the controversies surrounding the reforms.
The contentious bills include the Joint Revenue Board of Nigeria (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024; and Nigeria Tax Bill, 2024. Since their introduction, they have faced widespread criticism, with Northern governors rejecting the proposals, labeling them as undemocratic.
Northern Lawmakers Voice Opposition
Senator Shehu Buba (APC, Bauchi South) revealed in an interview with BBC Hausa that Northern Senators strongly oppose aspects of the bills, particularly the proposed “derivation” formula for Value Added Tax (VAT) distribution, which they argue disproportionately affects northern states.
Citing the complexity of the bills, Senator Buba called for a detailed review by tax policy experts, while the National Economic Council has requested their withdrawal for further consultations.
Senate Leadership Takes Action
Deputy Senate President Jibrin Barau stated that the Senate would rise above political and regional divides to ensure national unity and progress. “We are committed to finding solutions through dialogue and consensus,” Barau noted.
The Senate’s special committee will meet with the Attorney General of the Federation and other key stakeholders on Thursday to address areas of disagreement. The Ministry of Justice has also been tasked with collaborating with the judiciary to ensure a fair resolution.
Barau added, “In collaboration with the Executive Arm of Government, we agreed to establish a forum to identify and address contentious areas to ensure national unity and progress.”
Next Steps
Until these issues are resolved, the Senate Committee on Finance has been directed to suspend all actions related to the tax reform bills. The committee, which includes key Senate leaders, will focus on developing a unified approach in collaboration with the Federal Government.
The move underscores the Senate’s role as a stabilizing force in navigating national challenges and reflects its commitment to supporting the President’s efforts to tackle economic and security challenges while avoiding further complications.
