Tax Reform: APC, PDP Northern Senators Demand Suspension Of Action On Bills

Northern senators have called for the suspension of further legislative action on the controversial Tax Reform Bills, which recently passed second reading in the Senate.

The lawmakers made this demand during a meeting on Monday, citing potential adverse effects on northern states.

The House of Representatives had at the weekend announced that it has suspended debate on the bills due to public outcry and resistance from some northern lawmakers.

The proposed tax laws, submitted by President Bola Ahmed Tinubu to the parliament, have sparked heated debates nationwide.

Critics, including northern governors, traditional rulers, and lawmakers, had urged the president to withdraw the bills for broader consultation. But the president insisted that the bills should be allowed to undergo legislative process.

Senator Buba Umaru Shehu, All Progressives Congress (APC) Bauchi State, who revealed the outcome of the northern senators’ meeting in an interview with the BBC Hausa Service yesterday, said northern senators from both the ruling APC and the opposition parties agreed on the need for the suspension of action on the proposals.

“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.

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 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.

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,” he said.

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.

Reps’ spokesman silenced over support for bills

The House of Representatives witnessed a rowdy session yesterday following a passing remark by its spokesperson, Akin Rotimi (Ekiti, APC) in support of the contentious tax reform bills.

Rotimi, while presenting a report on behalf of the House Committee on Nigerian Content Development and Monitoring, prefaced his remarks by saying, “I am from Ekiti State, the very first state in the NASS Caucus that has unanimously endorsed the tax reform bills.”

This comment drew immediate backlash from his colleagues, with many shouting “No, no!” to express their disapproval. The session became chaotic as lawmakers objected to Rotimi continuing with his presentation.

Speaker Abbas Tajudeen attempted to defuse the situation, calling the statement a “light note” and withdrawing it on Rotimi’s behalf. He urged lawmakers to focus on the proceedings and allow Rotimi to continue, but the uproar persisted.

The Speaker said: “Hon. Rotimi, you know this is a controversial issue. I wouldn’t want you to mention things that are not relevant to the subject matter. So, please, on your behalf, I withdraw that statement. Let us not repeat it again.”

Despite the intervention, the lawmakers’ opposition intensified, forcing Rotimi to step down from presenting the report.

To restore order, the Speaker called for the House to dissolve into the Committee of the Whole for report consideration.

The speaker then handed over proceedings to Deputy Speaker Benjamin Okezie Kalu to continue the session.