Senate Forms Committee To Review Tax Reform Bills

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The Nigerian Senate has constituted a committee to address contentious issues surrounding the proposed tax reform bills, following concerns raised by stakeholders, especially from northern governors. Deputy Senate President Barau Jibrin made this announcement during Wednesday’s plenary.

The bills, aimed at harmonizing and resolving disputes in revenue administration, have faced significant opposition. Critics argue that certain provisions could disproportionately impact the northern region and claim insufficient consultation during the drafting process.

In response, the Senate appointed Senator Abba Moro (PDP, Benue South) to lead a review committee. The committee, in collaboration with Attorney General of the Federation Lateef Fagbemi, will identify and resolve contentious areas before the public hearing stage.

Barau emphasized the need for a collaborative approach, saying:

“We decided to put politics, ethnicity, and regionalism aside to find a solution to the issues surrounding the tax reform bills. Both the legislative and executive arms are committed to addressing these disagreements for the unity and progress of the nation.”

President Bola Ahmed Tinubu, who introduced the bills on October 3, 2024, has faced calls to withdraw them for further consultations. However, he remains firm on pushing the legislation through the legislative process.

The bills passed their second reading last week via voice vote. They aim to harmonize tax systems, reduce conflicts in revenue collection, and improve fiscal management. The National Economic Council had previously advised a pause for further consultation, but Tinubu declined, citing the urgency of the reforms.

A meeting between the committee and the Attorney General is scheduled to address the disagreements. Meanwhile, the Senate Finance Committee has been directed to halt public hearings and related activities until the issues are resolved.