Nigerian Senate Tackles Tax Reforms and Rivers State Political Crisis

The Nigerian Senate resumed its plenary session after a three-week recess, prioritizing deliberations on proposed tax reforms and efforts to resolve the political crisis in Rivers State. The upper chamber, led by Senate President Godswill Akpabio, aims to address President Bola Tinubu’s tax reform bills, which seek to streamline Nigeria’s tax system, boost revenue, and reduce burdens on small businesses.

Simultaneously, the Senate is mediating the escalating tensions in Rivers State between Governor Siminalayi Fubara and his predecessor, Nyesom Wike, which have disrupted governance and sparked violence. The tax reform bills, introduced in late 2024, include proposals to harmonize multiple tax laws, increase the Value Added Tax (VAT) rate from 7.5% to 10%, and exempt low-income earners from personal income tax. The Senate’s Finance Committee, chaired by Senator Sani Musa, has conducted public hearings, revealing mixed sentiments. 

While the government argues the reforms will fund infrastructure and social programs, critics, including northern governors, warn of economic strain on citizens already grappling with 32% inflation. The Senate plans to debate amendments to balance revenue goals with public welfare, with a vote expected by June 2025.

In Rivers State, the conflict between Fubara and Wike, now the Federal Capital Territory Minister, has led to factionalized state assemblies and violent clashes, including arson attacks on local government offices in October 2024. The Senate, through its Committee on States and Local Government, is facilitating dialogue to restore stability, with Senators from the South-South geopolitical zone leading mediation efforts. Resolutions may include power-sharing agreements and fresh local elections to address disputed council seats. The Senate’s dual focus reflects its role in shaping economic policy and maintaining political stability, with Akpabio urging senators to prioritize national interest amid public scrutiny.