The Nigerian Senate has temporarily halted progress on the controversial Tax Reform Bills following public outcry and objections from northern governors and lawmakers. Deputy Senate President Jibrin Barau announced the decision during a Wednesday plenary session, stating that the Senate’s Finance Committee would delay public hearings until public concerns are addressed.

The bills, including the Nigeria Revenue Service (Establishment) Bill and Nigeria Tax Bill, 2024, have sparked criticism for being potentially unfavorable to northern states. Borno State Governor Babagana Zulum claimed the proposed value-added tax (VAT) formula would disproportionately benefit Lagos and Rivers States while harming northern regions.

To address the controversy, a Senate delegation will meet with President Bola Tinubu’s economic team, led by Fiscal Policy Chairman Taiwo Oyedele, alongside the Attorney-General and other key officials, to review contentious provisions. President Tinubu has directed the Ministry of Justice to collaborate with the National Assembly on resolving the issues.

Deputy Senate President Barau emphasized the Senate’s role as a stabilizing force, pledging bipartisan efforts to ensure the bills align with national unity and economic stability. Further consultations are scheduled to identify solutions before the bills proceed.