The Nigerian Senate has put a hold on deliberations and public hearings related to the contentious tax reform bills currently under review. This decision, announced during Wednesday’s plenary session, follows widespread public criticism and opposition from key stakeholders, particularly from Northern governors and lawmakers.
Deputy Senate President Jibrin Barau, who presided over the session, stated that the Senate’s Finance Committee has been directed to suspend any further action on the bills until ongoing concerns and controversies are addressed. Barau emphasized the Senate’s commitment to fostering national unity and resolving disputes in a collaborative manner.
The tax reform bills under scrutiny include the Joint Revenue Board of Nigeria (Establishment) Bill, 2024, the Nigeria Revenue Service (Establishment) Bill, 2024, and the Nigeria Tax Bill, 2024. Critics, particularly from Northern Nigeria, have argued that the proposed changes, including a new “derivation” formula for value-added tax (VAT) distribution, could disproportionately disadvantage northern states.
In light of these objections, Senator Shehu Buba (APC, Bauchi South) told the BBC Hausa Service that northern senators unanimously supported recalling the bills for further examination. “These bills are complex and require thorough review by tax policy experts,” he said.
The National Economic Council has also urged the withdrawal of the bills from the National Assembly to allow for broader consultation. President Bola Ahmed Tinubu has instructed the Ministry of Justice to engage the judiciary in addressing contentious aspects of the legislation.
In response, the Senate has formed a special committee, including key Senate leaders and other members such as Orji Kalu (APC, Abia North) and Seriake Dickson (PDP, Bayelsa West), to meet with the executive arm of government and identify solutions. Discussions with the Attorney General of the Federation are scheduled for Thursday to address legal and policy disagreements.
Barau concluded, “The Senate, as a stabilizing institution, will continue to prioritize national peace and progress by resolving these issues through dialogue and consensus.”
