As Nigeria’s National Assembly prepares to debate significant tax reform bills, prominent Northern leaders, including former Vice President Atiku Abubakar and Borno State Governor Babagana Zulum, have voiced strong opposition to the proposed legislation. Their concerns centre around the potential negative impact these reforms could have on the Northern economy, with calls for a more cautious and inclusive approach to the legislative process.
Concerns Over Economic Impact
Governor Zulum has been particularly vocal about the implications of the tax bills, warning that they could cripple the economy of Northern Nigeria. In an interview with BBC Hausa, he expressed alarm at the speed with which the bills are being pushed through the legislative process. He drew parallels to the lengthy deliberation surrounding the Petroleum Industry Bill, which took nearly two decades to pass. Zulum questioned the urgency behind the current tax reforms, stating, “Why the rush? This bill should be treated carefully and with caution.”
Zulum emphasised that the proposed tax structure appears to disadvantage certain regions, particularly Northern states. He argued that if passed, these reforms would hinder developmental projects and make it difficult for states to pay salaries sustainably. “If these bills pass, we won’t even be able to pay salaries,” he warned.
Call for Transparency and Consultation
Atiku Abubakar echoed Zulum’s sentiments, urging for transparency and fairness in the National Assembly’s review of the tax reform bills. He highlighted the need for a fiscal system that promotes justice and equity across Nigeria’s diverse regions. “Nigerians are united in their call for a fiscal system that promotes justice, fairness, and equity,” Atiku stated. He called upon lawmakers to ensure that public hearings on the bills are conducted objectively and inclusively, involving various stakeholders in the discussion.
Both leaders have made it clear that their opposition does not equate to a rejection of President Bola Ahmed Tinubu’s administration but rather a plea for reconsideration of policies that may disproportionately affect Northern Nigeria.
Legislative Progress
The tax reform bills include several key pieces of legislation aimed at overhauling Nigeria’s taxation framework. These include:
- Nigeria Tax Bill 2024: Establishes a comprehensive fiscal framework for taxation.
- Tax Administration Bill: Provides a legal framework for all taxes and aims to reduce disputes.
- Nigeria Revenue Service Establishment Bill: Repeals the Federal Inland Revenue Service Act and establishes a new revenue service.
- Joint Revenue Board Establishment Bill: Creates a tax tribunal and an ombudsman for tax-related grievances.
The Senate has already passed these bills for a second reading and referred them to the Committee on Finance for further consideration.
Broader Implications
The debate surrounding these tax reforms is not just limited to economic considerations; it also reflects deeper regional tensions within Nigeria. The Northern opposition is supported by various groups concerned about equitable development across all states. Meanwhile, other regions, such as parts of the South-East and South-West, have shown varying degrees of support for the reforms.
As discussions continue in the National Assembly, it remains crucial for lawmakers to address these concerns transparently while balancing regional interests against national economic goals. The outcome of this legislative process will have significant implications for Nigeria’s fiscal landscape and its socio-economic dynamics moving forward.
By Joseph Johnston,
Youth Editor,
Egogonews Hub
