Nigeria Tax Reforms: Why Senate Suspended Further Deliberation of Bill 

The Nigerian Senate yielded to public pressure, suspending deliberations on the four controversial tax reform bills sent in by President Bola Tinubu until contentious issues are sorted out. 

The bills, which sparked widespread debate, were referred to the Senate Committee on Finance.

The Senate has now mandated the committee to halt any further action, including public hearings until further notice. 

In a move to address the disagreements, the Senate has established a 10-member committee tasked with engaging with the Attorney General of the Federation, and the Minister of Justice, Lateef Fagbemi to address the areas of contention.

The announcement was made by the Deputy President of the Senate, who presided over the plenary session on Wednesday. 

He emphasized that the Senate’s decision was driven by the need to prioritize national unity, setting aside political, ethnic, and regional interests to find a constructive resolution to the tax reform issues.

Senator Barau,  explained that the lawmakers had consulted with the executive and agreed that a dedicated forum should be established to address the areas causing division. 

According to him this  collaborative approach is aimed at ensuring the country remains united as it tackles the pressing issues of tax reform.

He also noted that since the introduction of the bills and the subsequent outcry, the Senate has held several meetings regarding the tax reforms, understanding the importance of its role as the highest legislative body in the country.

He further stressed that the Senate has always served as a stabilizing force, offering solutions through dialogue and consensus during times of national disagreement,since 1999.

The senator pointed out that Nigeria has faced numerous challenges, including insecurity and economic challenges assuring that the  Senate is determined to avoid allowing the tax reform bills to worsen the existing issues.

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The newly formed committee is expected to begin its work immediately, with a meeting scheduled for Thursday. 

The committee will be chaired by Senate Minority Leader, Abba Moro, and will include several other key senators representing various regions. 

Other  members are: 

Mohammed Mungono, Senate Chief Whip (North East)

Adamu Aliero (North West)

Orji Kalu (South East)

Seriake Dickson (South South)

Titus Zam (North Central)

Yahaya Abdullahi Chairman, Senate Committee on National Planning

Solomon Olamilekan, Chairman, Senate Committee on Appropriation

Sani Musa, Chairman, Senate Committee on Finance

Adetokunbo Abiru, Chairman, Senate Committee on Banking

The four tax reform bills,  by the Presidential Committee on Fiscal Policy and Tax Reforms, are designed to overhaul Nigeria’s tax laws. 

These include the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill. 

However, the bills have faced significant opposition, particularly from the northern regions, primarily due to disagreements over the VAT sharing formula.

The National Economic Council, comprising state governors, had recommended that the President withdraw the bills for further consultation, a suggestion echoed by Senator Ali Ndume on the Senate floor.

The Northern Governors’ Forum also  openly opposed the bills, citing regional concerns.

(Editor: Anoyoyo Ogiagboviogie)