Tax Reform Bill: Northern Senators Seek Suspension

Tax Reform Bill: Northern senators seek suspension as it passed the second reading

Various Senators from the Northern part of Nigeria have sought the suspension on the controversial Tax Reform Bills which has recently passed the second reading.

On Monday, officials made the move during a meeting, highlighting the possible adverse effects it could have on the North.

The House of Representatives suspended the bill over the weekend, citing public opposition and rejection by northern members.

President Tinubu’s proposed tax laws have sparked intense debates across Nigeria, with many criticizing the bill’s provisions.

Antagonists of the bill include, governors from the north, northern traditional rulers and lawmakers. They have all implored the president to place the bill on hold for wider and more rigorous consultation.

President Tinubu insists that the bills should be granted its due legislative precedence.

Senator Buba Umaru Shehu, lawmaker representing All Progressives Congress (APC), Bauchi State, spoke following Northern senators’ meeting.

Tax Reform Bill: Northern Senators Seek Suspension

He noted that the Peoples’ Democratic Party (PDP) and the All Progressives Congress’ (APC’s) northern senators have all agreed to stall the legislative process of the bill.

In his statement: “These bills are complex and require thorough review by tax policy experts,” he said.

He criticized the suspected hastiness in advancing the bills, which underwent only a few days of deliberation.

Northern lawmaker, led by Senator Shehu strongly oppose the proposed VAT ”derivation” formula, citing unfair disadvantage to northern states.

He then warned that passing the proposed tax bills without careful and thorough review might fuel a long-term challenges and consequences.

Furthermore, Borno State APC Senator Ali Ndume, confirmed and seconded Senator Shehu’s claim by saying the Northerners truly met their governors and other leaders, and they had an agreement on the withdraw of the bills for wider and a more thorough consultation.

He noted that the agreement was in consonance with the proposition of the northern traditional rulers and the National Economic Council (NEC), stressing that northern state assemblies would announce their antagonism soon.

Also, Senator Ndume noted that some provisions in the proposed tax bills conflict with the Nigerian Constitution and will not see the light of a new day.

Tax Reform Bill: Northern Senators Seek Suspension

”I am surprise that we did not address the agreed-upon motion today. I expect the Chief Whip of the Senate, Tahir Monguno, to take action and introduce a motion to withdraw the bills as agreed”.

“This is not the first time such a thing has been done; some good examples include the water resource bill when our friends from the South raised concerns and it was withdrawn.

“We had the Petroleum Industry Bill (PIB), which was withdrawn on several occasions in the House of Representatives and the Senate before it was finally passed after more than ten years.

He added: “As I said before and I will repeat it, why the hurry? This is something that should be done after wide consultation because it requires the buy-in of all stakeholders.”

Ndume also rebuffed the claim emanating from some quarters that the northerners were using tax reform stand-off to politick ahead of 2027.

“No; somebody has to be principled. Politically, I am the second oldest legislator in the National Assembly. I am use to saying it as it is. I am not playing the script of anybody.

“If I have a political leader today, (former president, Muhammadu) Buhari is to be number one and then President Tinubu.

“I cannot speak against them but I can disagree with them,” he said.

Recalling that The House of Representatives put the deliberation of the proposed tax bill on hold. 

Its member Muhammad Bello Shehu Fagge, stated: “We’ve observed the public’s anger over the bill and the strong reactions from our religious leaders. This is why we decided to suspend the debate.”

The newly proposed tax bills has provoked controversies among many Nigerians.

Northerners strongly believe the bill is anti-north and deliberately designed to further impoverish the region.

The proposed bills have been referred to the Senate Committee on Finance for further and more deliberate review.

Tax Reform Bill: Northern Senators Seek Suspension

Senator Sani Musa’s committee is responsible for subjecting the bills to wider consultation. This will help to garner inputs from experts and the public.

Spokesperson for the House of Representatives Akin Rotimi (Ekiti, APC) remain undecided in his support for controversial tax reform bills.

While reporting on the behalf of the House Committee on Nigerian Content Development and Monitoring, Rotimi remarked:

“I am from Ekiti State. The very first state in the NASS Caucus that has unanimously endorsed the tax reform bills.”

Immediately, his remark attracted digs from other House members, with several lawmakers chanting “No, no!” to refute his remark.

The session turned rowdy, as many Reps. members opposed Rotimi proceeding with the presentation of the tax bills.

The Speaker of the House of Representatives Abba Tajudeen tried to dowse the tension. He describes the statement as a “light note” and retire it on behalf of Rotimi.

Speaker Abbas said: “Hon. Rotimi, you know this is a controversial issue. I wouldn’t want you to mention things that are not relevant to the subject matter.

“So, please, on your behalf, I withdraw that statement. Let us not repeat it again.”

Despite the speaker’s intervention, the lawmakers’ antagonism intensified, prompted Rotimi to retire presentation of the reports.

In order to restore order during the plenary, the Speaker asked the House to dissolve into the Committee of ”Whole”. This will enable consideration of the report.

Ultimately, Speaker Abbas assigned Deputy Speaker Benjamin Kalu to preside over the p proceedings.

Tax Reform Bill: Northern Senators Seek Suspension