Presidency: Tax Reform Bills Won’t Impoverish the North

The Presidency has rejected claims that the proposed tax reform bills would impoverish northern Nigeria and primarily benefit Lagos and Rivers states.

In a statement issued on Monday, December 2, presidential spokesperson Bayo Onanuga explained that the reforms are designed to enhance the quality of life for all Nigerians, with a particular focus on helping disadvantaged regions.

Onanuga emphasized that the reforms aim to streamline tax administration and create a more favorable business environment, benefiting the entire nation.

This response came after Borno State Governor, Babagana Zulum, raised concerns over the proposed Value Added Tax (VAT) sharing model, which he believes would disproportionately benefit states like Lagos and Rivers.

Governor Zulum made these remarks during an interview on Channels TV.

Reacting to his position, Onanuga described such reactions as unfounded and based on misinformation.

“The tax reform bills will not make Lagos or Rivers states more affluent than others, nor will they impoverish any region,” Onanuga stated, urging Nigerians to reject attempts to polarise the nation over the bills.

The presidential spokesperson further clarified that the proposed tax reform bills do not include plans to abolish key 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, according to the statement, will continue to operate and receive funding through regular budgetary allocations.

The spokesperson reiterated that President Bola Tinubu’s tax and fiscal policy reforms are designed to simplify the tax collection process, ease the financial burden on businesses, and foster national development.

Yakubu Dogara, the former Speaker of the House of Representatives, has urged Northern leaders to approach the ongoing tax reform bills before the National Assembly with a practical mindset, rather than letting sentiments guide their decisions.

During a Channels Television town hall held in Abuja on Monday, Dogara emphasized that the region’s future development should be the priority.

He called for leadership that is focused on long-term progress and growth, urging Northern leaders to set aside ethnic or religious biases in favor of policies that will benefit the entire country, including the Northern region.

“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.

Yakubu Dogara criticized senators who argued that there had been insufficient consultation on the proposed tax reform bills, questioning their own approach to lawmaking.

“How many people do they consult when making laws? Some state laws are written in the living rooms of governors,” he said, dismissing arguments that the bills’ popularity is more important than its impact.