Northern Senators Demand Suspension of Controversial Tax Reform Bills
Northern senators have called for an immediate halt to further legislative action on the controversial Tax Reform Bills, which recently passed a second reading in the Senate. The lawmakers voiced concerns over the bills’ potential negative impact on northern states, emphasizing the need for broader consultation and expert review.
During a meeting on Monday, Senator Buba Umaru Shehu (APC, Bauchi) revealed that senators across party lines agreed on suspending the bills. Speaking to the BBC Hausa Service, Shehu criticized the perceived rush in advancing the legislation, noting, “These bills are complex and require thorough review by tax policy experts.”
One contentious aspect of the proposed reforms is the derivation formula for Value Added Tax (VAT) distribution, which critics argue disproportionately favors certain states, leaving northern states at a disadvantage.
The controversy has drawn resistance not only from lawmakers but also from northern governors, traditional rulers, and groups like the Coalition of Northern Groups (CNG). Jamilu Charanchi, the CNG’s national coordinator, said at a press conference, “The proposed reforms would exacerbate existing challenges and entrench hardship among poverty-stricken Nigerians.”
Northern Senators Demand Suspension of Controversial Tax Reform Bills
Northern senators have called for an immediate halt to further legislative action on the controversial Tax Reform Bills, which recently passed second reading in the Senate. The lawmakers voiced concerns over the bills’ potential negative impact on northern states, emphasizing the need for broader consultation and expert review.
During a meeting on Monday, Senator Buba Umaru Shehu (APC, Bauchi) revealed that senators across party lines agreed on the suspension of the bills. Speaking to the BBC Hausa Service, Shehu criticized the perceived rush in advancing the legislation, noting, “These bills are complex and require thorough review by tax policy experts.”
One contentious aspect of the proposed reforms is the derivation formula for Value Added Tax (VAT) distribution, which critics argue disproportionately favors certain states, leaving northern states at a disadvantage.
The controversy has drawn resistance not only from lawmakers but also from northern governors, traditional rulers, and groups like the Coalition of Northern Groups (CNG). Jamilu Charanchi, the CNG’s national coordinator, said at a press conference, “The proposed reforms would exacerbate existing challenges and entrench hardship among poverty-stricken Nigerians.”
House of Representatives Halts Debate Amid Public Outcry
The House of Representatives has also suspended deliberations on the bills due to widespread public backlash. Rep. Muhammad Bello Shehu Fagge acknowledged strong opposition from religious leaders and constituents, prompting the decision to pause discussions.
However, a rowdy session ensued when the House spokesperson, Akin Rotimi (APC, Ekiti), voiced support for the reforms. His remarks were met with loud protests from lawmakers, forcing him to withdraw his statement under pressure from Speaker Abbas Tajudeen.
Presidency Advocates Dialogue and Consultation
President Bola Ahmed Tinubu has directed the Ministry of Justice to collaborate with the National Assembly to address concerns over the proposed reforms. The Minister of Information, Mohammed Idris, urged calm and warned against divisive rhetoric, stating, “The government welcomes meaningful inputs to address grey areas in the bills.”
Economic and Regional Concerns Persist
Stakeholders, including the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), warned that the reforms could harm the oil and gas sector. Festus Osifo, PENGASSAN’s president, called for expanded tax relief exemptions for minimum wage earners and small businesses.
The bills, which aim to overhaul Nigeria’s tax system, remain a lightning rod for debate. Critics argue that the reforms could deepen regional inequalities, while proponents insist they are essential for fiscal sustainability.
For now, the future of the tax reform bills hangs in the balance as lawmakers, stakeholders, and the presidency navigate this contentious issue.
