Proposed Tax Reforms: Northern Group Applauds Governors’ Forum

A prominent Northern group commends the Nigerian Governors’ Forum for supporting proposed tax reforms, highlighting their potential to drive economic growth and equitable development.

The Coalition of Northern Groups (CNG) has praised the Nigerian Governors’ Forum (NGF) for advocating a fairer distribution formula for Value Added Tax (VAT).

Jamilu Charanchi, the National Coordinator of the Coalition of Northern Groups (CNG), revealed this during a press conference held in Bauchi on Friday.

Charanchi stated that the updated formula, which allocates 50% based on equality, 30% on derivation, and 20% on population, is a positive change from the previous unbalanced proposal of allocating 60% based on derivation with only 20% each for both equality and population.

Regarding the ongoing discussions on Nigeria’s tax reforms and the newly proposed VAT sharing formula, he mentioned that the CNG has been traveling across Northern Nigeria to interact with citizens, civil society organizations, and other stakeholders. They have been conducting town hall meetings to discuss these controversial bills.

He added that the governors have collectively succeeded in changing the imposed formula to a more favorable win-win VAT structure for all three tiers of government.

This change will promote unity and fairness, ensuring that no region is overlooked in Nigeria’s development path.

He stated that the bills contained other controversial issues which needed to be addressed with utmost seriousness, as they could have significant consequences for everyday Nigerians.

“The CNG resolutely pledges to persist in its efforts against the defunding of TETFUND, NASENI, and NITDA, as these essential institutions are crucial for promoting education, innovation, and technological progress in Nigeria,” he stated.

He stated that the CNG firmly opposes any taxes on family wealth or inheritance, arguing that such measures unjustly burden families, undermine religious traditions, and contradict cultural values.

The group also dismissed the plan to increase VAT and instead suggested reducing it from 7.5% to 3%.

“The coalition emphatically cautions against any attempt to raise VAT, considering the current harsh economic conditions that make life difficult for Nigerians,” he stated.

This is a time when the federal government should focus on encouraging and supporting Small and Medium Enterprises (SMEs) instead of burdening them with unnecessary taxes and exploitation.

The Coalition also opposed the suggested centralization of tax collection, which would prevent the Nigeria Customs Service from collecting excise duties and import VAT. Additionally, it would designate the new Nigeria Revenue Service (NRS) as the exclusive collector of royalties from the upstream oil sector.

The alleged 13% of taxes reportedly allocated for consultancy services under the guise of reform is unacceptable. It seems to favor personal gains for a select few benefiting from our commonwealth over the collective welfare of the people.

The group urged the National Assembly to remain steadfast in safeguarding the interests of the marginalized.

“We firmly state to all senators and members of the House of Representatives, especially those from the North who support these bills without addressing their known loopholes and issues or remain indifferent, that they are committing a grave disservice against the people. We will not hesitate to organize public opposition at an appropriate time,” he declared.

As it closely monitors the situation, CNG reiterates its dedication to opposing any policies that cause economic hardships for Nigerians.

The coalition is unwavering in its support for policies that prioritize transparency, fairness, and the well-being of citizens.

The CNG will keep engaging with stakeholders, initiating awareness programs, and mobilizing Nigerians to remove any contentious aspects in the proposed reforms that adversely affect everyday people.