Northern Senators Call for Suspension of Tax Reform Bill Over Concerns of Adverse Impact on Northern States
Northern senators have called for the immediate suspension of legislative action on the controversial Tax Reform Bill, citing concerns over the potential negative effects it could have on northern states.
The senators reached this decision following a meeting in which they unanimously agreed to halt progress on the bill to allow for more consultations and thorough review.
Senator Buba Umaru Shehu (APC, Bauchi State) announced the outcome of the meeting during an interview with the BBC Hausa Service, revealing that lawmakers from both the All Progressives Congress (APC) and opposition parties were in agreement about the need for a pause. According to Senator Shehu, the senators were concerned that the bill had not undergone enough scrutiny from tax policy experts and required a deeper review to ensure it would not harm the northern region.
The Tax Reform Bill, which was submitted by President Bola Ahmed Tinubu, recently passed its second reading in the Senate despite growing resistance from northern lawmakers, traditional rulers, and governors. The bill, which includes provisions regarding the value-added tax (VAT) distribution system, has sparked widespread debates and controversy across the nation. Many critics, particularly from the north, have urged President Tinubu to withdraw the bill to allow for more inclusive consultations, but the president has remained firm in his stance that the legislative process should proceed.
In response to the escalating opposition, the House of Representatives recently suspended discussions on the tax reform proposals, following public outcry and strong resistance from northern lawmakers. The move was seen as a response to concerns raised by regional leaders, including traditional rulers and governors, who argue that the reform could disproportionately affect northern states.
Senator Shehu elaborated on the concerns of northern lawmakers, stressing the importance of protecting the interests of their constituents. He criticized the perceived haste with which the bills were being advanced, noting that they had only been debated for a few days and required more careful consideration by experts. He particularly raised concerns about the proposed “derivation” formula for VAT distribution, which he argued would unfairly impact northern states.
In addition to Shehu, Senator Ali Ndume (APC, Borno) confirmed the decision of the northern senators during an interview with Daily Trust. Ndume revealed that the senators had met with their governors and other regional leaders, where they unanimously agreed to advise for the withdrawal of the bills to allow for further consultations and buy-in from all stakeholders. He noted that state assemblies in the region would also voice their objections in the coming days.
Ndume further criticized the provisions of the bills, claiming they clashed with the Nigerian constitution and would not stand up to legal scrutiny. He expressed surprise that the motion for the suspension of the bills, which was agreed upon in the meeting, was not raised in the Senate plenary session. However, he expressed optimism that the motion would be presented the following day, stressing that the legislative process should allow for wider consultation before any decision is made.
Ndume also rejected claims that the opposition to the tax reform was politically motivated ahead of the 2027 elections. He emphasized that he was speaking out of principle and not out of political considerations, asserting that he had no hidden political agenda. He reaffirmed his commitment to the long-term welfare of the Nigerian people, insisting that such significant reforms should not be rushed.
In the House of Representatives, Rep. Muhammad Bello Shehu Fagge, a key figure in the suspension of the debates, explained that the decision to halt discussions was driven by public anger over the bill and the strong reactions from religious leaders. Fagge noted that the suspension was intended to address the concerns of the people and ensure that the reform was carried out in a manner that took into account the diverse views of the Nigerian population.
As the debate continues, the bills have been referred to the Senate Committee on Finance for further review. The committee, chaired by Senator Sani Musa (APC, Niger), is expected to hold public hearings to gather inputs from experts and the public before making any recommendations. The outcome of these consultations will likely play a crucial role in determining the future of the controversial Tax Reform Bill.
