Tax Reform Bills: Akpabio Counters Barau’s Suspension Announcement

The Senate has clarified its position on the controversial tax reform bills, with Senate President Godswill Akpabio stating unequivocally that legislative action on the bills has not been suspended or withdrawn. This announcement contradicts earlier remarks by Deputy Senate President Jibrin Barau, who had announced a suspension of public hearings and legislative work to allow for wider consultations.

Barau, presiding over Wednesday’s plenary, had set up a 10-member committee led by Senator Abba Moro to engage the Attorney General of the Federation (AGF) and Justice Minister, Lateef Fagbemi, in resolving contentious issues. However, at yesterday’s plenary, Akpabio reaffirmed the Senate’s commitment to advancing the bills. “The Senate cannot be bullied,” he stated, emphasizing that legislative actions are ongoing.

The controversy surrounding the bills has stirred significant regional and political tensions. Senators from the South-South geopolitical zone, under the aegis of the South-South Senators’ Forum, have expressed strong support for the reforms. They passed a vote of confidence in Akpabio’s leadership and urged collaboration with South-South governors to ensure alignment on the bills. In a statement led by Senator Seriake Dickson, the forum emphasized that tax reforms are essential for national revenue growth and economic stability.

Meanwhile, tensions have risen within the Senate as the membership of the 10-member committee has been adjusted. Chief Whip Senator Mohammed Monguno was replaced by Senator Shehu Kaka. Monguno and other leaders from Borno, including Senator Ali Ndume, Governor Babagana Zulum, and Vice President Kashim Shettima, have been vocal opponents of the reforms. Shettima, as chair of the National Economic Council, previously advised the Presidency to suspend the bills for wider consultations.

Despite these divisions, Akpabio underscored the Senate’s independence, stating, “We don’t take orders from anyone or any office, no matter how highly placed.” The Senate plans to engage in extensive public hearings and consultations with stakeholders, including governors, business leaders, and religious figures, to address concerns and ensure transparency.

The Senate President praised the prompt actions of Senator Abba Moro and the committee in initiating consultations. He reiterated that the bills, which have passed their second reading, remain active and are undergoing further legislative processes.

Support for the bills has also come from prominent groups and individuals. Former Ekiti State Governor Kayode Fayemi highlighted the importance of political and stakeholder engagement for the bills to gain widespread acceptance. Fayemi called for reforms to ensure a fair revenue-sharing formula favoring states and underscored the need to avoid centralizing revenue management in a federal system.

Additionally, the Arewa Youth Movement expressed support for the bills, emphasizing their potential to boost economic growth in the North. Despite resistance from some northern elites, the group called for the National Assembly to expedite the reforms. Similarly, the Nigerian Southern Senators Forum backed the bills, describing them as a pathway to a more equitable tax system.