Presidency: Tax Reform Bills Will Not Impoverish Northern Nigeria
The Presidency has dismissed claims that the proposed tax reform bills before the National Assembly will impoverish northern Nigeria or unfairly benefit states like Lagos and Rivers. In a statement released on Monday, presidential spokesperson Bayo Onanuga called these concerns unfounded, stressing that the reforms aim to improve the quality of life for all Nigerians and create a more business-friendly environment by streamlining tax administration.
Onanuga emphasized that the reforms would not make Lagos or Rivers wealthier than other states or impoverish any region. He urged Nigerians to reject attempts to politicize or distort the proposals. His statement responded to concerns raised by Borno State Governor Babagana Zulum, who feared that the proposed Value Added Tax (VAT) sharing model could disproportionately favor wealthier southern states.
The spokesperson also clarified that the reforms do not call for the abolition of key agencies like the Tertiary Education Trust Fund (TETFUND), the National Agency for Science and Engineering Infrastructure (NASENI), or the National Information Technology Development Agency (NITDA). These agencies will continue to receive funding through the national budget.
Onanuga reiterated President Bola Tinubu’s commitment to tax and fiscal reforms that would simplify tax collection, reduce burdens on businesses, and support national development.
Former Speaker of the House of Representatives Yakubu Dogara also weighed in, urging northern leaders to approach the reforms pragmatically, focusing on the country’s long-term development rather than ethnic or religious sentiments. Speaking at a Channels Television town hall, Dogara called for a shift in mindset, stating, “We Northern leaders should remove the cap of ethnicity and religious sentiments and put on the cap of leadership to face the reality, which the bills will bring.”
Dogara also questioned senators who claimed insufficient consultation on the reforms, pointing out that some state laws are created with minimal consultation. He emphasized that the impact of the bills should be prioritized over their popularity.
Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal and Tax Reforms, explained that the bills aim to empower subnational governments to improve revenue generation and work towards financial self-sufficiency.
As the debate over the reforms continues, the Presidency and supporters of the bills have emphasized that the ultimate goal is to foster equitable development and establish a sustainable fiscal framework for Nigeria.
