The Nigerian Presidency has refuted claims that the proposed tax reform bills currently before the National Assembly will impoverish northern Nigeria, suggesting that the reforms will only benefit Lagos and Rivers states.
In a statement issued on Monday, December 2, Bayo Onanuga, the presidential spokesperson, emphasized that the reforms are designed to improve the quality of life for all Nigerians, particularly the disadvantaged, and to streamline tax administration. Onanuga also stressed that the reforms aim to foster a more business-friendly environment across the country.
The statement came in response to concerns raised by Borno State Governor, Babagana Zulum, who, during a weekend interview on Channels TV, warned that the proposed Value Added Tax (VAT) sharing model would disproportionately favor states like Lagos and Rivers. Zulum argued that northern states would suffer under the new VAT system.
Onanuga dismissed these concerns as “unfounded” and based on “misinformation.” He assured Nigerians that the tax reform bills are not designed to benefit only a select few states at the expense of others. “The tax reform bills will not make Lagos or Rivers states more affluent than others, nor will they impoverish any region,” Onanuga stated. He also urged the public to resist efforts to create divisions over the proposed bills.
The spokesperson further clarified that the bills do not propose the abolition of critical national agencies such as 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 operate and receive funding through budgetary allocations,” Onanuga explained.
President Bola Tinubu’s proposed tax and fiscal policy reforms, according to Onanuga, are intended to simplify the tax collection process, reduce the burden on businesses, and support broader national development efforts.
In the meantime, Yakubu Dogara, former Speaker of the House of Representatives, has called on northern leaders to approach the tax reform bills with a pragmatic mindset. Speaking at a Channels Television town hall in Abuja on Monday, Dogara urged regional leaders to prioritize the future development of the north over ethnic and religious considerations.
“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 stated. He added that it was essential for northern leadership to embrace the reforms in a practical and forward-thinking way.
Dogara also criticized some lawmakers who claimed that there was insufficient consultation on the proposed bills. He questioned their sincerity, pointing out that the lawmaking process often involves minimal consultation. “How many people do they consult when making laws? Some state laws are written in the living rooms of governors,” he said. He dismissed arguments that the popularity of the bills among lawmakers should take precedence over their long-term impact on national development.
As the National Assembly continues its deliberation on the tax reforms, it remains to be seen whether the proposals will be amended or passed into law, and how they will affect Nigeria’s regional economic landscape.
