Tax Reform Bills Will Devastate Northern Nigeria, Zulum Warns

Governor Babagana Zulum raises concerns over proposed tax reform bills, warning they could have severe economic consequences for Northern Nigeria.

Borno State Governor, Babagana Zulum, has expressed significant concerns about the proposed tax reform bills, warning that they could have a detrimental impact on the economy of both the Northern region and other areas in Nigeria.

In a Friday interview with BBC Hausa, Zulum expressed concerns about the rapid pace of the legislative process for these bills, in contrast to the Petroleum Industry Bill which took almost twenty years to be enacted.

“What’s the hurry? The Petroleum Industry Bill took nearly two decades to be passed, yet this tax reform bill is being rushed through legislative review within just a week. It deserves careful consideration and deliberation to ensure that it benefits not only us but also future generations,” Zulum remarked.

The governor raised concerns that the proposed reforms are designed in a way that could disproportionately impact specific regions of the country.

“We strongly oppose these bills presented to the National Assembly, as they will hinder progress in the North and have negative impacts on regions such as the South East, South West, including states like Oyo, Osun, Ekiti, and Ondo,” he stated.

Zulum also suggested that certain individuals could be persuading President Bola Tinubu with assertions that the North is not in favor of his administration.

“This isn’t about opposition. From our perspective, this bill will completely devastate the North. We urge President Tinubu to reconsider this choice. With 60% of his votes coming from the North, he should ignore claims that lack Northern support for him exists. It is crucial to retract these tax bills,” Zulum stated.

The governor cautioned that if the bills are enacted, northern states might face challenges in executing developmental projects and could even struggle to pay salaries.

READ ALSO: PHOTOS: Zulum Inspects Borno Flood Damage, Distributes Relief to Victims

“If these bills are approved, we will struggle to pay salaries. Even if we somehow manage it this year, it won’t be sustainable next year. We oppose the bill and so does Lagos State. If it’s hindering regional progress, why not withdraw it? Our National Assembly members, including some representatives from the South, do not support this,” he expressed his concern.

Representing the North East, Zulum stressed that their disagreement with the bills should not be mistaken for opposition to the government.

He clarified, “This is our stance, and it doesn’t imply opposition to the government. We supported and voted for President Tinubu; however, these bills will not benefit us.”

Remember that after a debate among lawmakers, the Senate approved the tax reform bills for a second reading on Thursday.

The bills have been forwarded to the Committee on Finance, which is anticipated to present its findings within six weeks.

The National Assembly received four tax reform bills, including the Nigeria Tax Bill 2024, designed to establish a fiscal framework for taxation. Additionally, the Tax Administration Bill aims to create a unified legal structure for taxes and minimize disputes.

Another piece of proposed legislation is the Nigeria Revenue Service Establishment Bill, aimed at replacing the Federal Inland Revenue Service Act with a new entity called the Nigeria Revenue Service. Additionally, there’s the Joint Revenue Board Establishment Bill, which seeks to establish both a tax tribunal and a tax ombudsman.