The Senate has started examining, one clause at a time, four significant tax reform bills presented by Senator Sani Musa, who chairs the Senate Committee on Finance.
While introducing the report on Wednesday, Musa detailed the key recommendations, and Senator Yahaya Abdullahi, head of the Special Committee on Tax Reform, also spoke before the Senate.
Following their remarks, Senate President Godswill Akpabio indicated the chamber’s willingness to proceed with the legislative review.
“We are now ready to go with the tax bills, that, however, does not stop any senator from raising objections, expressing satisfaction with the legislative process so far.
“We are doing this for Nigeria. Some of these laws date back to before 1960,” Akpabio said.
Despite the progress, some clauses quickly sparked disagreement when the Senate transitioned into the Committee of the Whole for detailed consideration.
Clause 22 immediately stood out. The clause proposed that “three percent of the total revenue collected by the service, which shall be appropriated by the NASS subject to the review of the percentage from time to time, depending on the economic situation or as the economic situation requires”.
Senator Aliyu Wadada raised concerns and suggested reducing the amount to two percent, emphasizing that the total revenue involved exceeds the combined budgets of 16 states.
He stressed that such substantial funds must be handled prudently, particularly because they encompass both oil and non-oil income.
His proposed change was accepted.
Clause 39 also drew scrutiny as Senator Adams Oshiomhole, backed by Senator Ibrahim Dankwambo, cautioned against too much legislative involvement in everyday financial approvals.
“Anything done should be overseen by the Senate, but this should not mean day-to-day interference. That would create bottlenecks and delay urgent financial decisions,” Oshiomhole said.
In response, Senator Musa defended the clause, saying the goal was to bolster the National Assembly’s oversight and promote responsible use of public funds.
He clarified that the provision wasn’t designed to obstruct urgent financial actions but rather to prevent unauthorized expenditures.
Eventually, the clause was upheld.
President Bola Ahmed Tinubu had submitted the four tax reform bills to the National Assembly in October 2024 for review and passage.
What you should know
This legislative effort aims to modernize Nigeria’s outdated tax laws. The adjustment of Clause 22 reflects the Senate’s careful stance on managing national revenue amid economic realities.
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