The Nigerian Senate has announced the suspension of action on the controversial tax reform bills currently before it. In a move aimed at addressing public concerns, the Senate has directed its Committee on Finance to halt the public hearing process until ongoing disputes surrounding the bills are resolved.

The decision was made during a plenary session on Wednesday, which was presided over by Deputy Senate President, Jibrin Barau. A special committee has been established to engage with the executive branch and resolve the issues surrounding the bills.

The tax reform bills, which include the Joint Revenue Board of Nigeria (Establishment) Bill, the Nigeria Revenue Service (Establishment) Bill, and the Nigeria Tax Bill, 2024, have sparked widespread controversy since their introduction in the National Assembly. Northern governors, in particular, have rejected the proposals, labeling them as anti-democratic and unfair to their states.

Senator Shehu Buba (APC, Bauchi South) had earlier spoken out, expressing that Northern lawmakers had agreed to recall the bills, citing the need for a thorough review by tax policy experts. Buba also pointed to opposition over the proposed “derivation” formula in the value-added tax (VAT) distribution system, which Northern lawmakers argue would disproportionately affect their states.

Amid these growing concerns, the National Economic Council had called for the suspension of the tax reform bills to allow for further consultations. President Bola Tinubu, responding to the protests, instructed the Ministry of Justice to liaise with the judiciary in an effort to resolve the matter.

In addressing the controversy, Deputy Senate President Jibrin Barau emphasized the Senate’s role in maintaining national unity and stability. He reassured the public that the Senate would set aside regional and political differences to ensure that the reform process serves the country’s best interests.

“We have decided to set aside politics, ethnicity, and regionalism to work together on resolving the issues surrounding the tax reform bills,” Barau stated, adding that the Senate will collaborate with the executive arm of government to resolve contentious areas.

The Senate also affirmed its commitment to addressing the country’s pressing economic challenges and supporting President Tinubu’s administration in its efforts to tackle insecurity and other national issues.

As part of the next steps, the Senate’s special committee will meet with the Attorney General of the Federation on Thursday to discuss the way forward. Meanwhile, the Committee on Finance has been instructed to suspend any further action on the tax reform bills until an agreement is reached.