Ndume Warns Economic Hardship May Worsen if Tax Reform Bill Passes

Senator Ali Ndume cautions that the proposed tax reform bill could exacerbate Nigeria’s economic hardship, urging careful consideration of its potential impact on citizens and businesses.

Senator Mohammed Ali Ndume, the representative of Borno South, has once again voiced his opposition to the proposed tax reform bills put forward by President Bola Ahmed Tinubu’s administration.

In a statement released on Sunday, Ndume cautioned that carrying out these reforms might worsen the already significant economic difficulties confronting Nigerians.

The senior member of the All Progressives Congress (APC) criticized the timing of the reforms, indicating that they might impose further financial strain on citizens and businesses.

He encouraged the government to reevaluate its strategy, stressing that the present economic conditions might not support such substantial fiscal adjustments.

Ndume stated, “These reforms could potentially exacerbate the present economic challenges. I strongly urge that the tax reform bills be retracted to allow for more extensive consultations with key stakeholders, such as state and local governments and the private sector.”

The lawmaker contended that the Federal Inland Revenue Service (FIRS) ought to concentrate on broadening the tax base and enhancing collection efficiency instead of implementing new taxes.

“The FIRS should focus on broadening the tax base and increasing revenue collection. Furthermore, there needs to be enhanced accountability and transparency in public fund management,” he expressed.

He also advocated for greater scrutiny of commercial banks, stressing that their substantial annual profits should lead to increased tax contributions.

Ndume emphasized the importance of implementing structural reforms in the government, pointing out the disparities in Nigeria’s budget allocation.

Ndume disclosed that the personnel and overhead costs for 2024 make up between 50 to 60 percent of the total budget. However, as we near year’s end, only 20 percent of the capital budget has been utilized, although recurrent expenses have been completely spent.

He contended that improving inefficiencies in government operations would lead to better results for the nation’s economy than imposing additional taxes.

Ndume dismissed regional stereotypes and emphasized the North’s contribution to national development, challenging assertions of dependency.

“The North should be seen as an asset rather than a liability. It’s essential for all states and regions to rely on each other for socio-economic survival and growth,” he emphasized.

Ndume stressed the need to prioritize and time reforms appropriately in order to secure public support and ensure they are effective.

He concluded by emphasizing that even with reforms, it is crucial to prioritize appropriately, time them correctly, and secure the support of Nigerians because this is a democracy—a government of the people, for the people, and by the people.