The Nigerian Senate has suspended further deliberations on the contentious Tax Reform Bills following intense public and political opposition.
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This decision was announced on Wednesday by Deputy Senate President Jibrin Barau during a plenary session.
The Tax Reform Bills, including the Joint Revenue Board of Nigeria (Establishment) Bill, Nigeria Revenue Service (Establishment) Bill, and Nigeria Tax Bill, 2024, have faced sharp criticism from various quarters, including northern governors and lawmakers, who have described them as anti-democratic and potentially harmful to their regions.
Barau revealed that the Senate has constituted a special committee to engage the Executive branch and collaborate with the Federal Government to address the issues fueling the controversy. Public hearings and further committee actions have also been paused until the concerns are resolved.
The bills sparked outrage due to proposed changes, particularly the derivation formula in the Value Added Tax (VAT) distribution system, which northern leaders argue would disproportionately affect their states.
Senator Shehu Buba (APC, Bauchi South) emphasized the need for expert review of the bills, describing them as overly complex and potentially divisive.
The National Economic Council has urged the Federal Government to withdraw the bills for further consultation, signaling significant resistance even within the government.
Barau reassured Nigerians that the Senate remains committed to resolving the disagreements through dialogue.
“The Senate of the Federal Republic of Nigeria serves as a stabilizing force in times of disagreement. We will set aside politics, ethnicity, and regionalism to ensure national unity and progress,” he stated.
A high-level delegation comprising Senate leaders, including Senators Adamu Ailero, Orji Kalu, Seriake Dickson, and others, will meet with the Attorney General of the Federation and other key stakeholders on Thursday to chart a way forward.
Barau underscored the importance of resolving the matter to avoid exacerbating the nation’s existing challenges.
He also reiterated the Senate’s readiness to support the President’s efforts to address insecurity and economic instability while working collaboratively to refine the proposed tax reforms.
The suspension marks a significant step in addressing the controversy, with stakeholders eagerly awaiting the outcome of the Senate's deliberations with the Executive and Judiciary.