Northern Governors Stand Against New Tax Amendment Bill

The Northern States Governors Forum (NSGF), representing Nigeria’s 19 northern states, has officially opposed the proposed tax amendment bill currently before the National Assembly.

This decision was announced on Monday following a joint meeting with the Northern Traditional Rulers Council at the Government House in Kaduna.

Muhammadu Inuwa Yahaya, the NSGF Chairman and Governor of Gombe State, read the communiqué, which expressed concerns about President Bola Tinubu’s proposed tax reform bills.

These bills include the Nigeria Tax Bill, Tax Administration Bill, Joint Revenue Board Establishment Bill, and a proposal to replace the Federal Inland Revenue Service with a new Nigeria Revenue Service.

The governors raised strong objections, particularly regarding the proposed shift of Value Added Tax (VAT) distribution to a derivation-based model, arguing that it could disadvantage the northern states.

“Forum notes with dismay the content of the recent tax reform bill that was forwarded to the national assembly,” the communiqué stated.

“The contents are against the interests of the north and other sub-nationals, especially the proposed amendment to the distribution of Value Added Tax (VAT) to a Derivation-based Model. This is because companies remit VAT using the location of their headquarters and tax office, not where the services and goods are consumed.”

The NSGF urged the National Assembly to reject any legislation that could harm the region’s interests, emphasizing the importance of fair and equitable implementation of national policies.

“For the avoidance of doubt, the Northern Governors’ Forum is not averse to any policies or programs that will ensure the growth and development of the country. However, the forum calls for equity and fairness in the implementation of all national policies and programs so as to ensure that no geopolitical zone is short-changed or marginalized.”

The forum also discussed the ongoing economic hardships facing the nation, assuring citizens that both state and federal governments are working to mitigate the impact. They encouraged citizens to remain calm, noting that efforts are underway to provide relief.

In their communiqué, the governors emphasized the crucial role of traditional institutions in maintaining peace and security, calling for continued cooperation with security agencies to tackle issues such as banditry, cattle rustling, communal clashes, and farmer-herder conflicts.

The meeting was attended by governors from Zamfara, Borno, Bauchi, Adamawa, Kogi, Yobe, Gombe, Kaduna, Nasarawa, and Kwara, while Kebbi, Taraba, and Niger were represented by their deputies and secretaries to their state governments.