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Senators from north demand suspension of action on tax reform bills

Northern senators have called for a halt to further legislative action on the controversial Tax Reform Bills, which recently passed their second reading in the Senate. 

Ali Ndume, APC Senator, Borno
Ali Ndume, APC Senator, Borno

Abuja, Nigeria

Northern senators have called for a halt to further legislative action on the controversial Tax Reform Bills, which recently passed their second reading in the Senate. 

The lawmakers made this request during a meeting on Monday in Abuja, expressing concerns about potential negative impacts on northern states.

This call follows a decision by the House of Representatives over the weekend to suspend debate on the bills due to public backlash and opposition from some northern lawmakers.

The tax reforms, proposed by President Bola Ahmed Tinubu, have sparked nationwide debates. Critics, including northern governors, traditional leaders, and lawmakers, have urged the president to withdraw the bills for more extensive consultation. However, President Tinubu has insisted that the bills should continue through the legislative process.

Senator Buba Umaru Shehu of the All Progressives Congress (APC) from Bauchi State, who spoke about the outcome of the northern senators’ meeting in an interview with the BBC Hausa Service, confirmed that senators from both the ruling APC and opposition parties were unified in calling for the suspension of action on the bills.

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

He criticised the perceived haste in advancing the bills, which were deliberated on for only a few days.

Senator Shehu said northern lawmakers strongly oppose the proposed “derivation” formula in the value-added tax (VAT) distribution system, arguing that northern states would be unfairly impacted.

He warned that passing the bills without careful review could have long-term consequences.

Senator Ali Ndume (APC, Borno) said the northern senators had met with their governors and other leaders from the region where they agreed to advise for the withdrawal of the tax reform bills for further consultations and buy-in.

He said this was in line with the suggestions of traditional rulers and the National Economic Council (NEC), adding that state assemblies in the region would also voice out their objections soon.

He equally said some provisions in the bills clashed with the Nigerian constitution and would not stand.

“I am surprised that the motion which we agreed was not mentioned today (Tuesday) at the plenary, but I am hopeful that tomorrow (Wednesday), the Chief Whip of the Senate (Tahir Monguno) will bring a motion for the withdrawal of the bills as agreed in that meeting.

“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.

“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,” he said.

Ndume also dismissed the claim in some quarters that they were using the tax reform imbroglio to play politics ahead of 2027.

“No; somebody has to be principled. Politically, I am the second oldest legislator in the National Assembly. I am used to saying it as it is. I am not playing the script of anybody. If I have any political leader today, (former president, Muhammadu) Buhari is supposed to be number one and then President Tinubu. I cannot speak against them but I can disagree with them,” he said.

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