The Nigerian Senate on Wednesday suspended all deliberations on four contentious tax reform bills sent by President Bola Tinubu. The decision comes after widespread public criticism, which tended to split the country along regional lines.
Some viewed the president’s push for the bill’s passage as too hasty and calculated to benefit one section of the country against others.
The government insists the bills’ intention is to expand Nigeria’s tax base, improve compliance, and establish sustainable revenue streams for national development that will benefit all.
The bills include the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.
However, critics argued that the bills would exacerbate economic hardships particularly in less economically viable states.
Even the Nigerian Governors’ Forum (NGF) demanded the withdrawal of the bills, citing the need for more consultation and public input. So did the National Economic Council, but the president wanted to push through the process, raising more suspicions about it.
On Wednesday, Deputy Senate President Jibrin Barau announced the suspension, saying it was important to have unity and dialogue in addressing the contentious issues. Barau ordered the Senate Finance Committee to halt all public hearings on the bills until the disagreements are resolved.
A ten-member Senate committee will meet with Lateef Fagbemi, the Attorney General of the Federation and Minister of Justice, to address the areas of contention.
Barau stressed that the Senate and the executive branch are committed to finding common ground to ensure that the bills align with the nation’s interests.
Threat In The Lower Chamber
Meanwhile, in the lower chamber, the House of Representatives, some lawmakers reported that their governors are threatening them not to support the passage of the bills.
Deputy spokesman of the House of Representatives Philip Agbese, speaking in plenary, said some of his colleagues reported that their governors warned they would not support their 2027 re-election bids if they let the tax reform bills pass.
“Some of these governors are threatening members from their states… They have even gone far to threaten that they would deny members return tickets in 2027 if they support the bills,” he said.
However, he said the lawmakers would not be intimidated. “As far as we are concerned in the House of Representatives, nobody can stop us from supporting President Bola Tinubu’s bid to reboot the economy to work for the country,” he said.
Responding, Speaker Tajudeen Abbas assured that the tax reform bills would be diligently scrutinized in the best interest of Nigerians.
Abbas said taxes are the bedrock of public revenue, providing the resources required to deliver education, healthcare, infrastructure, and security.
He lamented that despite Nigeria being Africa’s largest economy, it still struggles with a tax-to-GDP ratio of just 6%—far below the global average and the World Bank’s minimum benchmark of 15% for sustainable development.
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