The bill was sponsored by Oluremi Tinubu, a senator from Lagos central.
The upper chamber went into a heated debate after the bill was called for second reading.
Most of the senators who spoke on it took a sectional angle.
Philip Aduda, a senator from the federal capital territory (FCT), argued that if special consideration would be given to Lagos state, the same thing should be extended to Abuja.
Arguing for the bill, Olusola Adeyeye, senate chief whip, said that Lagos state deserved a special status because of its economic significance to the country.
“We have a governor that banned alcohol, and if my own people consume alcohol, that governor should not enjoy a kobo of value-added-tax (VAT) from my area,” he said.
“If it is 13 percent for Bayelsa and Delta, it should be so for Lagos state from VAT.”
He described the FCT as a “rotten, spoilt child” because “the city does not pay tax to the federal government”.
”The FCT is a rotten, pampered child. But I withdraw my statement on that,” he said.
“The FCT is being subsidised by the federal government. That must end.”
After the debate, Ike Ekweremadu, deputy senate president, who presided over the sitting, called for a voice vote to which a majority of members yelled “nay”, marking the end of the bill.
Not satisfied with the outcome, Ekweremadu called for a voice vote two additional times, but the “nays” had their way.
Afterwards, there was momentary rowdiness, and the presiding officer tried repeatedly to call the senate to order but the cacophony continued.
Calm later returned to the senate.
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