In a recent statement, Governor Abdullahi Sule of Nasarawa State articulated the concerns of northern governors regarding President Bola Tinubu's proposed tax reform bills. This comes in the wake of widespread opposition from northern leaders who fear that the reforms will disproportionately disadvantage their states.
Governor Sule emphasized that the northern governors are not against reform itself but are advocating for a delay in the implementation of these bills to allow for further consultation and adjustments. He highlighted that the proposed changes, particularly concerning the allocation of Value Added Tax (VAT), could exacerbate existing economic challenges in the region.
"We cannot support a tax reform that places undue burden on our states. The current proposals do not adequately consider the unique economic circumstances of northern Nigeria," Sule stated during an interview. He underscored that the northern states have historically supported Tinubu's presidency and are committed to ensuring his success, but they also demand equitable treatment in fiscal policies.
The primary concern among northern governors revolves around the proposed VAT sharing formula, which they believe could lead to significant revenue losses for their states. Governor Babagana Zulum of Borno State has echoed these sentiments, warning that if implemented, these reforms could hinder states' abilities to meet basic obligations, including paying salaries to public workers. Zulum remarked, “If these bills scale through, we will not be able to even pay salaries. This is not just a concern for us; it affects all regions.”
The Northern Governors' Forum convened recently to discuss their collective stance on the tax reform bills. They issued a communiqué urging members of the National Assembly to reject any legislation that jeopardizes the well-being of their constituents. The forum's chairperson, Gombe State Governor Inuwa Yahaya, reiterated that while reforms are necessary, they must be pursued with fairness and consideration for all regions.