By Marvelous Ayebo.
The Nigerian Senate has halted discussions on the controversial Tax Reform Bills, instructing its Committee on Finance to pause public hearings until widespread public concerns are addressed.
Deputy Senate President Jibrin Barau, presiding over the plenary on Wednesday, announced the decision to establish a special committee to engage with the Federal Government and address contentious aspects of the bills.
Background
The Tax Reform Bills, including the Joint Revenue Board of Nigeria Bill (2024), the Nigeria Revenue Service Bill (2024), and the Nigeria Tax Bill (2024), have faced significant backlash. Northern governors, led by Borno State Governor Prof. Babagana Zulum, labeled the bills as anti-democratic, citing provisions that they believe unfairly favor certain regions.
Zulum argued that clauses, such as the value-added tax (VAT) derivation formula, would disproportionately benefit states like Lagos and Rivers, while disadvantaging northern states. He urged the Federal Government to pause the process for deeper consultations.
National Economic Council Intervention
Oyo State Governor Seyi Makinde, speaking after the 144th National Economic Council meeting chaired by Vice President Kashim Shettima, confirmed that the council recommended withdrawing the bills from the National Assembly to allow for broader consensus.
Senate and Executive Efforts
The Senate invited the President’s economic team, including the Chairman of the Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, and Federal Inland Revenue Service (FIRS) Chairman, Zacchaeus Adedeji, to clarify the bills. Following their explanations, the Senate passed the bills for a second reading but transmitted them to the Finance Committee for further review.
Amid these developments, President Bola Tinubu directed the Ministry of Justice to collaborate with the National Assembly to resolve outstanding issues. Minister of Information Mohammed Idris reiterated the Federal Government’s commitment to addressing public concerns.
Special Committee Established
Barau announced that the Senate would work with the Attorney-General of the Federation (AGF), Lateef Fagbemi (SAN), to resolve disagreements. However, the AGF, currently abroad, may not attend Thursday’s scheduled meeting.
Chairman of the Senate’s special committee, Abba Moro, confirmed that senators would meet to chart a way forward regardless of the AGF’s availability.
Call for Swift Action
Taiwo Oyedele emphasized the urgency of the tax reforms, stating that the bills aim to address economic hardships, streamline levies, and promote equity in VAT distribution.
“We’re dealing with inflation, unemployment, and poverty,” Oyedele said during an Arise News interview. “This is an emergency requiring swift action, much like the global response to COVID-19.”
Despite claims of rushing, Oyedele explained that the reforms had been in progress for over a year and had undergone consultations with governors and stakeholders.
Path Forward
The Senate has reaffirmed its commitment to national unity and progress, vowing to set aside political, ethnic, and regional differences to resolve the controversies surrounding the tax reform bills.
Deputy Senate President Barau highlighted the Senate’s role as a stabilizing force, stating, “Through dialogue and consensus, we will address these challenges to ensure peace, stability, and development for our nation.”
The outcome of Thursday’s meeting and subsequent consultations will determine the future of the Tax Reform Bills.