Northern Senators Call for Suspension of Tax Reform Bills

Northern Senators Call for Suspension of Tax Reform Bills Amid Widespread Controversy

 

Northern senators have urged the suspension of further legislative action on the contentious Tax Reform Bills, citing potential negative impacts on northern states. These bills, which recently passed the second reading in the Senate, have faced growing opposition across the nation, particularly in the North.

 

Concerns Raised by Northern Senators

 

During a meeting on Monday, northern senators from both the ruling All Progressives Congress (APC) and opposition parties called for a halt to the bills. Senator Buba Umaru Shehu (APC, Bauchi) revealed that lawmakers had reached a consensus, arguing that the proposals require extensive expert review. “These bills are complex and require thorough review by tax policy experts,” Shehu said, criticizing the perceived rush in advancing the legislation.

 

The proposed reforms have sparked nationwide debate, with critics warning of long-term consequences if passed without proper consultation. One particularly controversial element is the proposed derivation formula for value-added tax (VAT) distribution, which northern lawmakers argue would disproportionately disadvantage northern states.

 

Senator Ali Ndume (APC, Borno) confirmed the senators’ stance, stating they had consulted with northern governors, traditional rulers, and other leaders, who also advocated for the withdrawal of the bills. Ndume emphasized the need for broad consultation and expressed concerns over provisions that may conflict with the Nigerian Constitution.

 

Broader Opposition and Public Outcry

 

The Tax Reform Bills, submitted by President Bola Ahmed Tinubu, have faced widespread backlash. Traditional rulers, northern governors, and economic experts have urged the president to withdraw the proposals for further consultation. Despite the opposition, the presidency has insisted that the bills undergo the legislative process.

 

The House of Representatives, meanwhile, suspended its debate on the bills following public outrage and resistance from some northern lawmakers. Rep. Muhammad Bello Shehu Fagge explained, “We’ve observed the public’s anger over the bill and the strong reactions from our religious leaders, which is why we decided to suspend the debate.”

 

Legislative Tensions

 

In the House of Representatives, a session turned chaotic after House spokesperson Akin Rotimi (APC, Ekiti) expressed support for the bills, citing his state’s endorsement. His remarks were met with immediate backlash from colleagues, prompting Speaker Abbas Tajudeen to withdraw the statement on Rotimi’s behalf. The uproar forced Rotimi to step down from presenting a report, and proceedings continued under Deputy Speaker Benjamin Okezie Kalu.

 

President Tinubu Responds

 

President Tinubu has directed the Ministry of Justice and other stakeholders to collaborate with the National Assembly to address concerns raised by critics. Minister of Information and National Orientation, Mohammed Idris, assured the public that the fiscal reforms would not impoverish any region. Idris also cautioned against divisive rhetoric and emphasized the government’s openness to constructive feedback.

 

Industry and Civil Society Criticisms

 

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) warned that the proposed reforms could hinder growth in the oil and gas sector. PENGASSAN President Festus Osifo highlighted potential adverse effects on regulatory bodies like the Nigeria Upstream Regulatory Commission (NUPRC). He also called for expanded tax relief exemptions for low-income earners and businesses.

 

Similarly, the Coalition of Northern Groups (CNG) criticized the tax reforms, arguing that they would exacerbate the country’s economic challenges. National Coordinator Jamilu Charanchi expressed concerns over a proposed 60% derivation formula, stating that the lack of transparent data raises doubts about its fairness.

 

Call for Broader Consultation

 

Northern lawmakers and other stakeholders have urged the federal government to pause the legislative process and allow for wider consultation. They cited past examples, such as the Petroleum Industry Bill (PIB) and the Water Resources Bill, which were delayed for years to address stakeholders’ concerns before eventual passage.

 

Senator Ndume concluded, “Why the hurry? This is something that should be done after wide consultation because it requires the buy-in of all stakeholders.”