‘Northern Senators Meet With Governors On Tax Reform Bills’

Northern senators have called for the immediate suspension of legislative action on the controversial Tax Reform Bill, citing potential adverse effects on north states.

The senators reached this decision after a meeting, Naija News understands.

Senator Buba Umaru Shehu (APC, Bauchi State) disclosed the outcome of the meeting during an interview with the BBC Hausa Service, stating that lawmakers across party lines, including the All Progressives Congress (APC) and opposition parties, agreed on the need to halt the bill’s progress for further consultation.

The Tax Reform Bill, submitted by President Bola Ahmed Tinubu, recently passed its second reading in the Senate amid nationwide debates and growing resistance from northern lawmakers, traditional rulers, and governors.

Critics have urged the president to withdraw the bill to allow for more inclusive consultations, but President Tinubu remains adamant that the legislative process should continue.

Over the weekend, the House of Representatives announced the suspension of debates on the tax reform proposals following public outcry and opposition from northern lawmakers.

Senator Shehu reiterated the senators’ concerns, emphasizing the importance of protecting the interests of their constituents.

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

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.

Also confirming their decision to Daily Trust yesterday, Senator Ali Ndume (APC, Borno) said the northern senators met with their governors and other leaders, 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 said some bills’ provisions 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.

In the House of Representatives, where the deliberations on the proposed laws have been suspended, Rep. Muhammad Bello Shehu Fagge said, “We’ve observed the public’s anger over the bill and the strong reactions from our religious leaders, which is why we decided to suspend the debate.”

The controversial bills had been referred to the Senate Committee on Finance for further review. The committee, chaired by Senator Sani Musa (APC, Niger) is expected to subject them to a public hearing to get inputs from experts and members of the public.