Borno State Governor, Babagana Zulum, has expressed grave concerns over the proposed tax reform bills currently before the National Assembly, cautioning that their passage could severely harm the Northern economy and other parts of Nigeria.
In an interview with BBC Hausa, Zulum questioned the rapid pace at which the bills are being processed compared to the Petroleum Industry Bill, which took nearly two decades to finalize. “Why the rush? The Petroleum Industry Bill took almost 20 years before it was finally passed. But this tax reform bill is being transmitted and receiving legislative attention within a week. It should be treated carefully and with caution so that even after our exit, our children will reap its benefits,” he stated.
The governor criticized the structure of the bills, arguing that they disproportionately disadvantage certain regions, including the North, South East, and some South West states like Oyo, Osun, Ekiti, and Ondo.
Zulum also hinted at potential political undercurrents influencing the legislation, stating, “Some individuals might be misleading President Tinubu into thinking that the North does not support his administration. This is not opposition; this bill will destroy the North entirely.” He called on President Bola Ahmed Tinubu to withdraw the bills, emphasizing the critical support the North provided during his election.
The governor warned of dire financial consequences for Northern states should the bills pass, including an inability to fund developmental projects and sustain salary payments. “If these bills pass, we won’t even be able to pay salaries. And if we do, it won’t be sustainable the following year,” he said.
Zulum clarified that the opposition to the bills is not a critique of the administration, stating, “We supported and voted for President Tinubu. But these bills will not be beneficial to us.”
The Senate recently passed the tax reform bills for a second reading and referred them to the Committee on Finance for further review, with a report expected in six weeks.
The four bills under consideration include:
1. Nigeria Tax Bill 2024 – Aims to provide a fiscal framework for taxation in Nigeria.
2. Tax Administration Bill – Proposes a legal framework to streamline tax processes and reduce disputes.
3. Nigeria Revenue Service Establishment Bill – Seeks to replace the Federal Inland Revenue Service Act and establish the Nigeria Revenue Service.
4. Joint Revenue Board Establishment Bill – Intends to create a tax tribunal and tax ombudsman.
Governor Zulum’s stance highlights growing regional tensions surrounding the proposed reforms, with calls for greater scrutiny and inclusivity in decision-making processes.
