The Nigerian Senate announced the suspension of action on the contentious tax reform bills currently before the legislative body.
This decision was accompanied by a directive for the Senate Committee on Finance to pause all public hearings and deliberations until public concerns are adequately addressed.
During Wednesday’s plenary, Deputy Senate President Jibrin Barau disclosed the Senate’s move to form a special committee tasked with engaging the executive branch to resolve the issues surrounding the tax reform bills.
The tax reform bills in question include the “Joint Revenue Board of Nigeria (Establishment) Bill, 2024”, “Nigeria Revenue Service (Establishment) Bill, 2024”, and the “Nigeria Tax Bill, 2024”.
These proposals have sparked significant public debate, with northern governors labeling them as “anti-democracy” and urging their withdrawal for further consultation.
In response to the uproar, the National Economic Council called for the bills to be temporarily withdrawn from the National Assembly.
Senator Shehu Buba (APC, Bauchi South), in an interview with BBC Hausa, confirmed that northern senators agreed to recall the bills for comprehensive review.
He emphasized the need for tax policy experts to address the complexities, particularly regarding the proposed derivation formula for value-added tax (VAT) distribution, which many argue could unfairly impact northern states.
Amid these controversies, President Bola Ahmed Tinubu directed the Ministry of Justice to collaborate with the judiciary to address legal concerns.
Deputy Senate President Barau reassured Nigerians of the Senate’s commitment to resolving the disputes, highlighting the importance of collaboration with the executive branch to achieve national unity and progress.
“We recognize that the Senate is entrusted with the responsibility to legislate for peace, stability, and development,” Barau stated.
“In this regard, we have decided to put aside politics, ethnicity, and regionalism to focus on resolving the issues surrounding the tax reform bills,” he continued.
Barau added that a meeting between the Senate’s special committee and the Attorney General of the Federation has been scheduled for Thursday to resolve areas of contention.
Until a resolution is reached, the Senate Committee on Finance has been directed to halt all activities related to the tax reform bills.
The special committee includes Senate leadership and key members such as Adamu Ailero (PDP, Kebbi Central), Orji Kalu (APC, Abia North), Seriake Dickson (PDP, Bayelsa West), Titus Zam (PDP, Benue South), Adeola Olamilekan (APC, Ogun West), and others.
This development marks the latest effort by the Senate to navigate the challenges posed by the controversial tax reform agenda.
