Tax reform: Northern senators divided as stakeholders form panel

The controversy trailing the tax reform bills currently before the National Assembly has divided the northern caucus of the Senate as some senators from the North have endorsed the bills.

The development is a complete departure from the situation a few days ago when the majority of northern lawmakers in the Red Chamber rejected the controversial bills.

The bills, comprising the Joint Revenue Board of Nigeria (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024, and Nigeria Tax Bill, 2024, have been at the centre of controversies since their introduction to the National Assembly.

President Bola Tinubu, on October 3, forwarded the four executive bills to the National Assembly for consideration, aiming to implement significant tax reforms.

The northern governors rejected the bills, describing them as anti-democratic.

Following this, the National Economic Council, Nigeria’s highest economic advisory body, requested that they should be withdrawn for more consultations.

However, following the interaction with the president’s economic, team, the Senate passed the bills for a second reading and transmitted them to the Senate Committee on Finance to report back in six weeks.

After the passage of the bills, the Borno State Governor, Prof Babagana Zulum, criticised them in an interview, stating that they would crumble the north’s economy.

Amidst the controversy, Senator Shehu Buba (APC, Bauchi South), in an interview with the British Broadcasting Service, Hausa Service, said northern senators agreed to recall the bills.

Senator Ali Ndume (APC, Borno), buttressing his colleague’s position, had also said the northern senators met with their governors and other leaders and agreed to advise for the withdrawal of the tax reform bills for further consultations and buy-in.

The Deputy Senate President, Jibrin Barau, during Wednesday’s plenary, instructed the Senate Committee on Finance to halt activities related to the bills and constituted a special committee to liaise with the Attorney General of the Federation.

The Senate President, Godswill Akpabio, on Thursday, swiftly discarded Barau’s instruction, emphasising that the bills had neither been withdrawn nor had the public hearing been postponed.

However, despite the earlier position of the northern federal lawmakers, some senators have decided that the tax bills should be given the necessary consideration.

The senators, who spoke on condition of anonymity in order not to incur the wrath of their governors, noted that only a few senators from the north were against the bills.

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