Northern senators have called for a suspension of further legislative action on the controversial Tax Reform Bills, which recently passed their second reading in the Senate. This request was made during a meeting on Monday, where lawmakers expressed concerns about the potential negative impacts on northern states.
The House of Representatives announced over the weekend that it has halted discussions on the bills due to public outcry and resistance from some northern lawmakers.
The proposed tax laws, submitted by President Bola Ahmed Tinubu to the parliament, have sparked intense debates across the nation.
Critics, including northern governors, traditional leaders, and lawmakers, have urged the president to withdraw the bills for broader consultations. However, the president has insisted that the legislative process should continue.
Senator Buba Umaru Shehu of the All Progressives Congress (APC) from Bauchi State revealed the outcome of the northern senators’ meeting in an interview with the BBC Hausa Service. He noted that senators from both the ruling APC and opposition parties agreed on the need to suspend action on the proposals.
“These bills are complex and require thorough review by tax policy experts,” he stated, criticizing the perceived haste in advancing the bills, which were discussed for only a few days.
Senator Shehu highlighted that northern lawmakers are strongly opposed to the proposed “derivation” formula in the value-added tax (VAT) distribution system, arguing that it would unfairly impact northern states. He warned that passing the bills without careful review could lead to long-term consequences.
Read also: The National Assembly will approve tax reform bills, and the sky won’t fall – Dickson
Senator Ali Ndume (APC, Borno) confirmed their decision to Daily Trust, stating that northern senators met with their governors and other leaders. They agreed to advise the withdrawal of the tax reform bills for further consultations and consensus.
This decision aligns with the recommendations of traditional rulers and the National Economic Council (NEC). Ndume added that state assemblies in the region would also soon voice their objections.
He also mentioned that some provisions in the bills conflict with the Nigerian constitution and would not hold up in court. “I was surprised that the motion we agreed upon was not mentioned today (Tuesday) at the plenary,” he said, expressing hope that the Chief Whip of the Senate would present a motion for withdrawal.
“This is not the first time such a situation has occurred; there are good examples like the water resource bill, which was withdrawn after concerns were raised by our colleagues from the South,” he explained.
Ndume emphasized the need for thorough consultation before proceeding, questioning the urgency behind the bills. “Why the hurry? This is something that should be done after wide consultation,” he stated.
He dismissed claims that they were using the tax reform debate for political gains ahead of the 2027 elections. “No; someone has to be principled,” he asserted, explaining that he speaks his mind regardless of political affiliations.
In the House of Representatives, Rep. Muhammad Bello Shehu Fagge stated that they have observed public anger over the bill and strong reactions from religious leaders, prompting the decision to suspend the debate.
The controversial bills had been referred to the Senate Committee on Finance for further review. The committee, chaired by Senator Sani Musa (APC, Niger), is expected to hold a public hearing to gather inputs from experts and the public.
Meanwhile, the House of Representatives experienced a chaotic session yesterday following a comment from spokesperson Akin Rotimi (Ekiti, APC) in support of the tax reform bills. His remarks were met with immediate backlash from colleagues, leading to a tumultuous atmosphere.
Speaker Abbas Tajudeen attempted to calm the situation, characterizing Rotimi’s statement as a “light note” and urging lawmakers to focus on the proceedings. Despite his intervention, opposition intensified, forcing Rotimi to step down from presenting the report.
To restore order, the Speaker called for the House to dissolve into the Committee of the Whole for report consideration, handing over proceedings to Deputy Speaker Benjamin Okezie Kalu.
Meanwhile, President Tinubu has directed the ministry of justice and other relevant stakeholders to collaborate with the National Assembly to address concerns regarding the bills. The Minister of Information and National Orientation, Mohammed Idris, cautioned against name-calling and unnecessary ethnic slurs in discussions about the tax reform bills.
Idris noted the vigorous nationwide debate on the bills and urged commentators to remain respectful, emphasizing that misinformation and fake news are circulating about the tax reforms. He assured that the fiscal reforms would not impoverish any state or region in the country.
The minister added that President Tinubu had instructed the Ministry of Justice and relevant officials to work closely with the National Assembly to ensure that all legitimate concerns are addressed before the bills are passed.
Finally, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has weighed in on the discussions, stating that the bills could hinder exploration activities and negatively impact key regulatory bodies in the oil and gas sector. PENGASSAN President, Festus Osifo, urged the government to broaden tax relief exemptions, particularly for minimum wage earners and businesses.
