Northern Senators convened a closed door meeting on Thursday, lasting over two hours, following the Senate’s passage of the contentious Tax Reform Bills for a second reading.
The closed-door session, held in Room 301 of the National Assembly Complex, was announced during the day’s plenary, igniting speculation about the agenda.
However, Senator Abdulaziz Yar’Adua, Chairman of the Northern Senators Forum, refrained from divulging the details of their deliberations.
The Tax Reform Bills, which include significant changes to Nigeria’s fiscal landscape, have drawn considerable attention. Earlier in the day, the Senate instructed its Committee on Finance to organize a public hearing involving state governors, the Governors Forum, traditional rulers, and other key stakeholders. The committee is expected to present its findings and recommendations within six weeks.
During plenary, Senate Leader Opeyemi Bamidele (APC, Ekiti Central) spearheaded discussions on the bills, emphasizing their importance for modernizing the nation’s tax framework. The four bills include:
The Nigeria Tax Bill 2024 – designed to establish a comprehensive fiscal framework for taxation in the country.
The Tax Administration Bill – aimed at providing a unified legal structure for all taxes in Nigeria while minimizing disputes and ambiguities.
The Nigeria Revenue Service Establishment Bill – which seeks to repeal the Federal Inland Revenue Service Act and establish the Nigeria Revenue Service for improved efficiency in tax collection.
The Joint Revenue Board Establishment Bill – intended to create a tax tribunal and a tax ombudsman to resolve disputes and enhance accountability in revenue management.
The Senate described the reform bills as critical to ensuring sustainable revenue generation and streamlining tax administration. Lawmakers highlighted the need for robust engagement with stakeholders to address potential concerns and ensure a fair and inclusive tax system.
However, the Northern Senators’ meeting has raised questions about whether regional interests or specific provisions within the bills influenced the closed-door discussions. The region’s lawmakers have previously expressed concerns about the disproportionate fiscal burdens placed on states with lower internally generated revenues, often reliant on federal allocations.
Observers are keenly watching for outcomes from the public hearing and the Senate Finance Committee’s report, as the Tax Reform Bills could significantly reshape Nigeria’s fiscal policies and their impact on citizens and businesses.