Zulum Warns: Proposed Tax Reform Bills Threaten Northern Economy

Borno State Governor, Babagana Zulum, has raised significant concerns about the recently proposed tax reform bills, cautioning that their implementation could severely damage the Northern economy and impact other regions across Nigeria.

Concerns Over the Rush to Pass the Bill

In an interview with BBC Hausa on Friday, Zulum criticized the rapid progression of the tax reform bills through the legislative process. Comparing it to the Petroleum Industry Bill (PIB), which took nearly two decades to finalize, he questioned the urgency behind the current legislation.

“Why the rush? The Petroleum Industry Bill took almost 20 years to pass. This tax reform bill is moving through the National Assembly in just a week. It should be approached with caution to ensure long-term benefits for future generations,” Zulum stated.

Regional Disparities and Potential Setbacks

Zulum expressed fears that the bills are structured in ways that disproportionately disadvantage certain regions, particularly the North.

“We condemn these bills sent to the National Assembly. They will pull the North backward and negatively affect regions like the South-East, South-West, and even some South-Western states such as Oyo, Osun, Ekiti, and Ondo,” he said.

The governor further alleged that some individuals might be influencing President Bola Ahmed Tinubu into believing the North is unsupportive of his administration, despite the region’s substantial contribution to his electoral victory.

“The North gave President Tinubu 60% of his votes. This bill will destroy the North entirely. We urge the President to reconsider and withdraw these tax bills,” Zulum added.

Impact on Development and Sustainability

Zulum warned that passing the bills could cripple developmental projects and make it challenging for states to pay salaries sustainably.

“If these bills pass, Northern states won’t be able to implement developmental projects or pay salaries consistently. Even Lagos State opposes this bill. If it’s dragging regions backward, why proceed with it?” he lamented.

Clarifying the North’s Position

While voicing his opposition, Zulum emphasized that the stance of Northern governors and lawmakers against the bills does not equate to opposition to the Tinubu administration.

“This isn’t about opposing the government. We supported and voted for President Tinubu, but these bills won’t benefit us,” he explained.

Senate Progress and Key Bills in Focus

The Senate recently passed the tax reform bills for a second reading and referred them to the Committee on Finance for further review within six weeks.

The proposed bills include:

1. Nigeria Tax Bill 2024 – Establishing the fiscal framework for taxation.
2. Tax Administration Bill – Providing a legal structure for tax management and dispute resolution.
3. Nigeria Revenue Service Establishment Bill – Replacing the Federal Inland Revenue Service Act with the Nigeria Revenue Service.
4. Joint Revenue Board Establishment Bill – Establishing a tax tribunal and ombudsman.

Call for Collaboration and Review

Zulum urged all stakeholders, including National Assembly members and the Presidency, to consider the broader implications of these bills and prioritize equity and sustainability.

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