Northern Governors Oppose Tinubu’s Proposed Tax Reforms, Warn Of Economic Risks For Region

Kaduna State- The Northern States Governors Forum (NSGF) has openly opposed a new tax amendment bill currently under review in the national assembly and expressed concerns about its potential impact on the economic stability of northern Nigeria.

In a meeting held on Monday at the Government House in Kaduna, NSGF Chairman and Gombe State Governor Muhammadu Inuwa Yahaya shared the Forum’s stance, emphasising the widespread apprehension among the 19 northern states regarding President Bola Tinubu’s proposed tax overhaul.

The reforms, outlined in the Nigeria Tax Bill, Tax Administration Bill, and the Joint Revenue Board Establishment Bill, also propose replacing the Federal Inland Revenue Service with a newly-formed Nigeria Revenue Service.

The primary concern for the NSGF lies in the proposed shift to a derivation-based Value Added Tax (VAT) distribution model, which they argue would disproportionately benefit wealthier states while leaving northern states with diminished revenues.

“The Forum notes with dismay the content of the recent tax reform bill that was forwarded to the national assembly,” Yahaya stated, adding that the distribution model risks widening economic disparities between Nigeria’s regions.

The communiqué read, “The contents are against the interests of the north and other sub-nationals, especially the proposed amendment to the distribution of Value Added Tax (VAT) to a Derivation-based Model. This is because companies remit VAT using the location of their headquarters and tax office, not where the services and goods are consumed.”

The NSGF called on the national assembly to reject any legislation that might harm the region’s interests, emphasizing the need for fair and equitable implementation of national policies.

“For the avoidance of doubt, the Northern Governors’ Forum is not averse to any policies or programs that will ensure the growth and development of the country. However, the forum calls for equity and fairness in the implementation of all national policies and programs so as to ensure that no geopolitical zone is short-changed or marginalized.”

Meanwhile, the forum also addressed the current economic hardship facing the nation and assured citizens that both state and federal governments are working to alleviate the impact. They urged citizens to remain calm, noting that efforts are underway to provide relief.

In their communiqué, the governors underscored the importance of traditional institutions in maintaining peace and security, calling for continued cooperation with security agencies to address issues such as banditry, cattle rustling, communal clashes, and farmer-herder conflicts.

Power and Agricultural Development Initiatives Highlighting the persistent power shortages in northern states, the governors called for urgent federal action to tackle the frequent vandalism of electricity infrastructure.

“This matter not only underscores the vulnerability of critical infrastructure but also the need to build additional transmission lines and diversify our energy supply to better connect our region and improve our energy resilience,” they stated.

The NSGF further emphasized the agricultural potential of the north, which they believe could significantly contribute to food security and economic growth if properly developed.

“To achieve this, we resolved to provide adequate support to our farmers, including access to financing, modern farming techniques, and infrastructure such as roads and irrigation systems,” the communiqué added.

“Agriculture should not only be seen as a means to feed our people but also as a catalyst for industrialization and job creation across the region,” the forum stated, advocating for the re-industrialization of the North, particularly through revitalizing the textile industry and other agro-allied sectors.

Livestock and Climate Resilience Initiatives The NSGF also praised President Tinubu’s livestock reform initiatives, committing to support these measures to ensure their success.

The forum acknowledged the impact of climate change on the region and pledged to work with the federal government to build essential irrigation infrastructure to prevent flooding and support agricultural activities.

The meeting was attended by governors from Zamfara, Borno, Bauchi, Adamawa, Kogi, Yobe, Gombe, Kaduna, Nasarawa, and Kwara, with Kebbi, Taraba, and Niger represented by their deputies and secretaries to their state governments.