Nigerian Senate sets up committee to review Tinubu’s controversial tax reform bills
Following President Bola Ahmed Tinubu’s directive to the Ministry of Justice to meet with the Senate to address concerns surrounding tax reform bills, the Nigerian Senate on Wednesday set up a committee headed by the Minority Leader, Senator Abba Moro (PDP, Benue South) to address the grey areas in the tax reform bills and report back to the committee of the whole before the public hearing on the bills.
The Deputy Senate President Barau I Jibrin (APC, Kano North), who presided over the plenary session, made the announcement, saying there were controversies over the bills, adding that the committee was saddled with the responsibility of consulting with the Attorney General of the Federation (AGF), the executive arm and other critical stakeholders.
It would be recalled that the President had on October 3, 2024, transmitted four tax reform bills to the National Assembly, in a letter read by the Senate President Godswill Akpabio, and Speaker of the House of Representatives, Hon Tajuddeen Abbas, during separate plenaries of the two chambers.
Drafted by the Presidential Committee on Fiscal Policy and Tax Reforms, the four bills—the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill aim to overhaul existing tax laws in Nigeria —were transmitted to the National Assembly by the president on 3 October.
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However, the bills have faced strong opposition, particularly from northern parts of the country, where some governors have labelled them “anti-North.”
The debates surrounding the bills have escalated into a North-South divide, particularly over the VAT sharing formula.
The National Economic Council, composed of state governors and chaired by Vice President Kashim Shettima, recently urged the President to withdraw the bills for further consultation.
However, the President declined, stating that all concerns should be resolved in the National Assembly.
Similarly, the Northern Governors’ Forum has also openly opposed the bills, citing regional interests.
It would be recalled that the Borno state governor Prof. Babagana Zulum on Sunday argued that the reforms would disproportionately benefit Lagos State, the president’s home state.
However, Taiwo Oyedele, the presidential committee, refuted these claims, asserting that the reforms would benefit all regions of the country.
So far, the bills have passed a second reading in the Senate. However, they face greater uncertainty in the House of Representatives, where opposition continues to grow.
Barau also named Senators Titus Zam (APC, Benue North West), Orji Uzor Kalu (Abia North), Sani Musa (APC, Niger East), and Abdullahi Yahaha (Kebbi North) among others as members of the committee.
Source: Daily Trust
