In a surprise move, Nigeria's National Assembly (NASS) adjourned its plenary sessions on Thursday until November 19, following intense debate over President Bola Tinubu’s proposed tax reform bills.
The adjournment came shortly after the National Economic Council (NEC) advised the immediate withdrawal of the bills to allow for wider stakeholder consultations.
The Senate had scheduled a first reading of the bills on Wednesday, only to prioritize screening seven ministerial nominees. When the bills were again excluded from Thursday's order paper, Senate Leader Opeyemi Bamidele (APC, Ekiti Central) requested a closed-door session, which lasted nearly two hours.
Afterward, Senate President Godswill Akpabio announced the adjournment, attributing it to time needed for oversight and committee work. Meanwhile, Oyo State Governor Seyi Makinde revealed NEC’s decision, emphasizing the importance of aligning with broader interests to ensure public buy-in.
He stated, “NEC noted the need for sufficient alignment on the proposed reforms and recommended the withdrawal of the Tax Reform Bill to allow wider consultation.”
The tax reform bills—intended to streamline Nigeria’s tax system by consolidating taxes and enhancing transparency—have drawn criticism from key stakeholders, including Northern governors and prominent senators.
The proposed derivation-based Value Added Tax (VAT) model faced strong opposition from the Northern Governors’ Forum, which argued it would disproportionately disadvantage northern states economically.
In response, the Presidency assured that the reforms are aimed at achieving equitable distribution and stimulating growth across regions. The proposed model would factor in where goods are supplied or consumed, ensuring that VAT revenue is fairly distributed.
The Presidency also emphasized that the reforms do not impose new taxes but focus on optimizing the existing tax framework to reduce administrative complexity. The bills include measures to consolidate and harmonize federal, state, and local taxes and introduce a Tax Ombudsman’s office for improved taxpayer services.
In another development, the House of Representatives mandated a comprehensive audit of all loans taken by federal and state governments since the start of Nigeria’s democratic era. This review, driven by Representative Lanre Okunlola, comes as Nigeria’s debt reached N121.67 trillion.
The audit aims to increase transparency in debt management amid concerns about Nigeria’s rising fiscal obligations. The National Assembly’s adjournment and NEC’s call for the bill’s withdrawal signal an ongoing need for alignment on the proposed tax reforms, with broad implications for Nigeria’s fiscal future.
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