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Senate suspends Action on Controversial Tax Reform Bills

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***Constitutes Special Committee to Engage FG

The Senate has suspended further action on the contentious Tax Reform Bills, as a result of widespread public outcry and opposition from Northern Governors, who labeled the bills as “anti-democratic.” 
The decision was announced by Deputy Senate President Jibrin Barau during Wednesday’s plenary.
Barau explained that the Senate Committee on Finance had been directed to halt public hearings and deliberations on the bills until the concerns raised by various stakeholders are addressed. 
A special committee has also been constituted to liaise with the executive branch to resolve the contentious issues.
The Contentious Bills Under Review are: ‘A Bill for an Act to Establish the Joint Revenue Board, the Tax Appeal Tribunal and the Office of the Tax Ombudsman, for the harmonisation, coordination and settlement of disputes arising from revenue administration in Nigeria and for other related matters, 2024.
‘A Bill for an Act to Repeal the Federal Inland Revenue Service (Establishment) Act, No. 13, 2007 and enact the Nigeria Revenue Service (Establishment) Act to Establish the Nigeria Revenue Service, charged with powers of assessment, collection of, and accounting for revenue accruable to the Government of the Federation, and for related Matters, 2024.
‘A Bill for an Act to Provide for the assessment, collection of, and accounting for revenue accruing to the Federation, Federal, States and Local Government; prescribe the powers and funtions of tax authorities, and for related matters, 2024.
‘A Bill for an Act to Repeal certain Acts on taxation and consolidate the l;egal frameworks relating to taxation and enact the Nigeria Tax Act to provide for taxation of income, transactions and instruments, and for related matters.
The bills aim to reform the nation’s tax system, but have faced opposition, particularly due to concerns about the proposed value-added tax (VAT) derivation formula, which critics argue could disproportionately affect northern states.
Northern Governors had strongly opposed the bills, with Borno State Governor warning that they could “crumble the economy of the North.” In response, the National Economic Council (NEC), chaired by Vice President Kashim Shettima, recommended the withdrawal of the bills for further consultations.
Oyo State Governor Seyi Makinde, speaking on behalf of the NEC, had emphasized the need for broader consensus, noting that certain sections of the country found aspects of the bills unacceptable.
Following the controversy, the Senate invited the President’s Economic Team, led by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, and Zacchaeus Adedeji, Chairman of the Federal Inland Revenue Service, to clarify the bills. Despite their explanations, concerns persisted, prompting the Senate to call for further dialogue.
Deputy Senate President Barau emphasized the Senate’s role as a stabilizing force, stating, “We have decided to set aside politics, ethnicity, and regionalism to resolve the issues surrounding the tax reform bills. In collaboration with the Executive, we will establish a forum to identify and address contentious areas to ensure national unity.”
Barau added that the Attorney General of the Federation would be involved in the discussions to resolve legal disputes surrounding the bills.
The special committee, comprising Senate leadership and key members such as Adamu Aliero, Orji Kalu, Seriake Dickson, and Sani Musa, is scheduled to meet with the Attorney General on Thursday to address the issues.
The Senate reaffirmed its commitment to supporting President Bola Tinubu’s economic reforms while ensuring that no new policies exacerbate the country’s current economic challenges.

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Senate

Senate steps Into Benue Judicial Crisis

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Abba Moro

****Abba Moro Leads Charge Against Unconstitutional Removal of Chief Judge

The Nigerian Senate has taken a firm stand on the ongoing constitutional crisis in Benue State following the controversial removal of the Chief Judge, Justice Maurice Ikpambese, by the State House of Assembly.

Leading the charge, Senate Minority Leader Abba Moro decried the move as an illegal affront to the Nigerian Constitution.
During a heated session, Moro, alongside other lawmakers from Benue, condemned the action, emphasizing that only the National Judicial Council (NJC) has the constitutional authority to remove a Chief Judge.

The Senate resolved to back the NJC in its constitutional role, invite the Speaker and Majority Leader of the Benue Assembly for explanations, and refer the matter to its Judiciary Committee for further investigation.
A motion to invoke Section 11(4) of the Constitution to take over the affairs of the State Assembly was, however, rejected.

Senate President Godswill Akpabio praised the bipartisan approach to the issue, noting that even APC senators from Benue joined Moro, a PDP senator, in defending constitutional order. The Senate urged swift resolution to prevent further escalation, especially following reports of arson at the State High Court premises.

The Judiciary Committee has been mandated to report back within two weeks as the nation watches closely how this legal battle unfolds.

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Senate in Turmoil as Natasha Akpoti-Uduaghan Protests Seat Reassignment

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A tense moment unfolded in the Senate on Thursday as Senator Natasha Akpoti-Uduaghan (Kogi Central) protested the reassignment of her seat, leading to a heated confrontation during plenary.

The drama began when Akpoti-Uduaghan arrived to find her nameplate removed and her seat reassigned without prior notice. Outraged, she immediately voiced her objections, demanding an explanation for what she perceived as an unjustified move.

Citing Order 10 of the Senate Standing Rules, which protects members’ privileges, she sought recognition from Senate President Godswill Akpabio to express her concerns. However, Akpabio denied her request, further escalating tensions.

As the protest intensified, security officials, including the Sergeant-at-Arms, were called in to restore order. Senate Leader Opeyemi Bamidele (Ekiti Central) and other senators intervened to de-escalate the situation, allowing plenary to resume.

Later, Senator Isah Jibrin (Kogi East) invoked Order 42, which allows for personal explanations, to clarify that the seat reassignments were a routine procedural matter following recent resignations and reconfigurations within the Senate. He urged Akpoti-Uduaghan to accept the change in good faith, emphasizing that such adjustments are standard practice.

“I appeal that we do not escalate this matter beyond the chamber. Seat reallocation is a normal process, and we should not let it create unnecessary division,” Jibrin said.

Senator Karimi Sunday (Kogi West), Chairman of the Senate Committee on Services, also weighed in, raising a point under Order 14, which governs privileges and discipline. He expressed displeasure that Akpoti-Uduaghan had singled him out during her protest but stated that he chose restraint over confrontation.

In his ruling, Senate President Akpabio urged all senators to remain calm and foster reconciliation. He emphasized that seat allocations are governed by Senate rules and are subject to change when necessary.

“I want the public to understand that our proceedings follow established rules and the Constitution. Seat reallocation is a routine practice, not an act of bias or exclusion,” Akpabio stated.

Citing Section 6(1) and (2) of the Senate Standing Orders, he reiterated that while senators must speak from designated seats, these assignments can be modified at the Senate President’s discretion. He urged all parties to “temper justice with mercy” and focus on their legislative responsibilities.

With the issue seemingly resolved, the Senate moved on to other legislative business. However, the incident highlighted the underlying tensions among lawmakers and the ongoing challenges of maintaining order in Nigeria’s upper legislative chamber.

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Senate Announces Dates For Public Hearing on Key Tax Reform Bills

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The Senate Committee on Finance has scheduled a two-day public hearing on four critical tax reform bills aimed at restructuring Nigeria’s tax administration and enhancing government revenue.
Chairman of the Committee, Senator Sani Musa, made this announcement after a briefing on Wednesday regarding the role of the Ministry of Finance Incorporated (MOFI) in managing the federal government’s assets.
He acknowledged MOFI’s efforts in implementing economic reforms and highlighted areas for improvement, which the institution has committed to addressing.
Following the briefing, the committee held a closed-door session, where members unanimously agreed on key aspects of the upcoming public hearing, scheduled for February 24 and 25, 2025.

Senator Musa said the hearing, which will be open to all stakeholders, will focus on Joint Revenue Board Establishment Reform Bill, Nigerian Revenue Services Bill, Nigerian Tax Administration Bill and the Nigerian Tax Bill 
He emphasized that these reforms aim to streamline tax collection, improve efficiency, and boost government revenue to support infrastructure, education, and economic development.
“We are committed to ensuring a transparent and inclusive legislative process. This public hearing will provide an opportunity for stakeholders—including government agencies, business leaders, tax professionals, and civil society organizations—to contribute to shaping Nigeria’s tax future,” he said.

The Senate has extended invitations to several key institutions, including Federal Ministry of Finance,Coordinating Minister of the Economy, Federal Inland Revenue Service (FIRS),Attorney General of the Federation, Ministry of Trade and Investment,National Bureau of Statistics (NBS), Religious and professional bodies among others.

“These bills, submitted by President Bola Ahmed Tinubu in 2024, have successfully passed their second readings in both chambers of the National Assembly and are now set for public scrutiny,” Senator Musa noted.

Senator Musa reassured the public that all concerns will be addressed, adding that extensive consultations have already taken place with relevant stakeholders to ensure a smooth and effective tax reform process.
“This is a national assignment, and we want to hear from all Nigerians. The goal is to implement a tax system that works for businesses, individuals, and the government,” he stated.
He further explained that the proposed tax reforms align with President Tinubu’s vision to strengthen Nigeria’s economy and enhance revenue generation without overburdening citizens.
“We believe these reforms will create a more efficient, transparent, and business-friendly tax system that will ultimately drive economic growth,” Senator Musa said.

The public hearing will take place at the National Assembly, Abuja, and will be open to all interested parties. The Senate encourages submissions from individuals and organizations with insights on improving Nigeria’s tax administration.
Senator Musa assured that the National Assembly remains independent in this process.
“President Tinubu has made it clear that he will not interfere. It is our duty as legislators to enact laws that will benefit the country economically,” he affirmed.
With this announcement, the Senate is calling on Nigerians to actively participate in shaping a fair, effective, and sustainable tax system for the country’s future.

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