Northern Governors stand firm against Tinubu’s tax reform bill
The Northern Governors Forum has firmly opposed the federal government’s proposed Tax Reform Bills, warning that they could have severe negative consequences for the northern region.
In a communiqué issued on October 28, the governors criticized the proposed derivation-based Value Added Tax (VAT) distribution model, describing it as “detrimental to the interests of the North and other sub-nations.”
They argued that the amendments, which allocate VAT based on a company’s headquarters, tax office, and where goods and services are consumed, would unfairly disadvantage northern states.
The forum highlighted that northern states, which host fewer corporate headquarters and tax offices than other regions, would be disproportionately affected, leading to economic setbacks for the region.
Consequently, the governors unanimously rejected the proposed amendments and called on northern lawmakers in the National Assembly to resist any legislation that could harm the region.
Bauchi State Governor Bala Mohammed labeled the bills as “anti-northern” during an interview, accusing the federal government of favoring select regions.
Despite these criticisms, President Bola Tinubu has stood by the reforms, dismissing calls for their withdrawal. In a December media chat, Tinubu underscored the importance of the reforms for Nigeria’s economic restructuring.
Northern Governors Forum Chairman, Governor Muhammad Yahaya of Gombe State, reaffirmed the forum’s opposition when speaking with Punch, stating that their position remained unchanged.
His spokesperson, Ismaila Misilli, emphasized that the governors had raised concerns about the bills from the outset. “The governor will not be confrontational, but his stance is firm,” Misilli said.
Similarly, Governor Babagana Zulum of Borno State has maintained his opposition. Abdulrahman Bundi, Zulum’s Senior Special Assistant on New Media, stated that the governor had evaluated the bills’ pros and cons and decided to stand against them. “There is no plan to back down or change his position,” Bundi affirmed.
Nasarawa State Governor Abdullahi Sule’s Senior Special Assistant on Public Affairs, Peter Ahemba, echoed this sentiment, asserting that northern governors were united in rejecting the bills.
Ahemba noted that the opposition extended beyond individual governors to northern lawmakers, who viewed the reforms as favoring southern states at the expense of the North.
Kano State Governor Abba Yusuf also criticized the bills as harmful to Nigerians, particularly those in the northern region. Speaking through his deputy, Aminu Abdulsalam, during a New Year celebration in Kano, Yusuf described the proposed reforms as “ill-timed, lopsided, and harmful to national unity.”
He urged the presidency to focus on addressing hyperinflation, insecurity, and poverty, especially in northern Nigeria, rather than introducing policies that could worsen the people’s plight.
The governors collectively called on President Tinubu to withdraw the Tax Reform Bills and conduct broader consultations to ensure the reforms are fair and inclusive. For now, the northern region remains steadfast in its opposition to the proposed legislation.
