Concerns Over Speedy Passage
Governor Babagana Zulum of Borno State warned that the proposed tax reform bills could harm the Northern region’s economy. He expressed concerns about the rapid legislative progress of these bills, contrasting it with the Petroleum Industry Bill’s prolonged deliberation. Speaking to BBC Hausa, Zulum emphasised the need for careful scrutiny to prevent long-term economic repercussions. “Why the rush? These bills deserve careful scrutiny to ensure they benefit future generations,” Zulum said.
Allegations of Regional Disadvantage
Governor Zulum alleged that the tax reforms are structured to disadvantage certain regions, including the North and parts of the South. He accused some individuals of misleading President Bola Ahmed Tinubu into believing that the North does not support his administration. “This is not about opposition but about safeguarding the region’s future. He warned that these bills would push the North backward and harm regions like the South East and South West. Zulum emphasised that their implementation would create significant economic setbacks for multiple parts of the country.
Development Projects at Risk
The governor warned that passing the tax reform bills could hinder Northern states from funding critical development projects, including salary payments. “If these bills are passed, we won’t even sustain salary payments beyond a year,” Zulum noted. He urged the President to withdraw the bills, highlighting the North’s significant electoral support for Tinubu.
National Opposition to Reforms
Zulum disclosed that opposition to the bills extends beyond the North, with regions like Lagos State also expressing concerns. “If these reforms are harmful to multiple regions, why not rescind them? National Assembly members, including some from the South, share our reservations,” Zulum said.
Clarifying Stance
The governor emphasised that the North’s criticism of the tax reforms should not be mistaken for opposition to the Tinubu administration. “We supported and voted for President Tinubu. However, these bills do not serve the best interests of our region,” he clarified.
Legislative Developments
The Senate approved the tax reform bills for a second reading and sent them to the Finance Committee for review. Legislators proposed the Nigeria Tax Bill 2024 and the Tax Administration Bill to streamline taxation processes and resolve disputes. They also included establishing the Nigeria Revenue Service and a tax tribunal, instructing the committee to report back in six weeks.
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