Northern govs, monarchs reject Tax Reforms Bill

Governors of the 19 northern states met in Kaduna yesterday, alongside top traditional rulers from the region, where they discussed various issues and challenges affecting the region, and resolved, among others, to reject the Nigeria Tax Reform Bill sent to the National Assembly recently by President Bola Ahmed Tinubu. Monday’s meeting was part of the […]

Governors of the 19 northern states met in Kaduna yesterday, alongside top traditional rulers from the region, where they discussed various issues and challenges affecting the region, and resolved, among others, to reject the Nigeria Tax Reform Bill sent to the National Assembly recently by President Bola Ahmed Tinubu.

Monday’s meeting was part of the Northern States Governors’ Forum’s initiative to engage key stakeholders over pressing matters, including insecurity, poverty, the education crisis and other socio-economic challenges affecting the region.

Governors in attendance included: Uba Sani of Kaduna State, Inuwa Yahaya (Gombe), Dauda Lawal Dare (Zamfara), Abdullahi A. Sule (Nasarawa), Babagana Zulum (Borno), Bala Mohammed (Bauchi), AbdulRahman AbdulRazaq (Kwara), and Ahmadu Umaru Fintiri (Adamawa). Deputy governors from other Northern states were also in attendance.

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The meeting, which held at the Sir Kashim Ibrahim House, also had in attendance notable traditional rulers, including the Sultan of Sokoto, Alhaji Muhammad Sa’ad Abubakar III; Shehu of Borno, Alhaji Abubakar Ibn Umar Garba Al- Amin El-Kanemi; Emir of Zazzau, Ambassador Ahmad Nuhu Bamalli; Ohinoyi of Ebira land, Alhaji Ahmed Tijani Anaje; Etsu Nupe, Alhaji Yahaya Abubakar; Emir of Kazaure, Alhaji Najib Hussaini Adamu; Emir of Bauchi, Alhaji Rilwanu Sulaiman Adamu, among others.

The Chief of Defence Staff, General Christopher Musa, was also present at the event.

‘Tax reform not favourable to North’

In a communiqué issued at the end of the meeting, the group decried the contents of the recent Tax Reform Bill that was forwarded to the National Assembly, saying they were against the interests of the North and other sub-nationals, especially the proposed amendment to the distribution of Value Added Tax (VAT) to Derivation-based Model.

President Bola Tinubu had on the 3rd of this month transmitted four tax reform bills to the National Assembly for consideration.

Tinubu, who was on vacation in London by then, sent the bills via a letter addressed to the Speaker of the House, Abbas Tajudeen. The letter was read on the floor of the House during plenary that day.

The bills are the Nigeria Tax Bill 2024, which is expected to provide the fiscal framework for taxation in the country, and the Tax Administration Bill, which will provide a clear and concise legal framework for all taxes in the country and reduce disputes.

The others are the Nigeria Revenue Service Establishment Bill, which will repeal the Federal Inland Revenue Service Act and establish the Nigeria Revenue Service, and the Joint Revenue Board Establishment Bill, which will create a tax tribunal and a tax ombudsman.

Tinubu said the bills were designed to support his administration’s objectives and strengthen fiscal institutions in the country.

“The proposed tax bills present substantial benefits that align with my government’s objectives and fiscal reform on the economic growth by enhancing taxpayer compliance, strengthening our fiscal institutions and fostering a more effective and transparent fiscal regime,” he said.

The president further stated that he was confident that if the bills were passed, they would encourage and stimulate the economy.

Explaining their decision to reject the Tax Reforms Bill yesterday, however, the Chairman of the Northern Governors’ Forum, Governor Inuwa Yahaya, while reading the communique of the forum’s meeting said: “This is because companies remit VAT using location of their headquarters and tax office and not where the services and goods are consumed. In view of the foregoing, the forum unanimously rejects the proposed Tax Amendments and calls on members of National Assembly to oppose any bill that can jeopardise the well-being of our people.

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

‘We’re worried’

The forum’s chairman, while reading the communique, also said that the economic hardship currently faced by Nigerians is more pronounced in the Northern region than the Southern region due to what he called “disparities in economic inequality.”

Speaking further, he said: “On the present economic hardship affecting the country, the forum is appealing to all citizens to remain calm, as the states and federal government are working hard to implement measures that will cushion effects of the hardship”.

The governor noted that the #EndBadGovernance protests which took place in August, served as a wake-up call for all northern leaders.

According to him, youth restiveness is a growing concern, driven by illiteracy, poverty, and a lack of economic opportunities.

He said it was essential for leaders to adopt measures to alleviate the suffering being experienced through targeted social welfare programmes, support for small and medium enterprises, and policies that would attract investments to their states.

“Our young people are calling out for change, and it is our responsibility to listen and act. We must scale up efforts to tackle the root causes of youth restiveness by investing in education, skills development, and job creation. Let us focus on creating pathways for the youth to channel their energy into productive ventures, thereby reducing their vulnerability to crime and social vices.

“The economic hardship faced by many Nigerians today is undeniable, and considering the North-South disparity in economic inequality, it is even more pronounced in northern Nigeria. This calls for urgent intervention,” he said.

The chairman further added that they must work with the federal government to ensure that fiscal policies are sensitive to the realities of the day.

“As we speak today, most of our Northern states are in darkness due to the vandalisation of electricity transmission infrastructure. This, not only underscores the vulnerability of critical infrastructure but also the need to build additional transmission lines and diversify our energy supply to better connect our region and improve our energy resilience.

Daily Trust reports that most parts of the northern region have been in darkness for almost 10 days due to a fault on the Shiroro-Kaduna transmission line, a development that has further worsened the hardship being experienced in the region.

“Northern Nigeria holds immense agricultural potentials, which, if fully harnessed, can significantly alleviate hunger and boost economic growth,” he said.

The governor also commiserated with victims of terrorism, banditry, and other criminal activities in the North, including the victims of the Maiduguri flood and the recent tanker explosion in Jigawa State.

He said they would continue to work with the federal government and relevant agencies to provide the necessary support and relief to those affected.

In the communique, the group further said: “Particularly, we commend the untiring commitment of the Chief of Defence Staff, General C. G. Musa, whose professionalism and innovative approach has made difference in security architecture of the country at large”.

The group also resolved to provide adequate support to farmers, including access to financing, modern farming techniques and infrastructure such as roads and irrigation systems.

“Agriculture should not only be seen as a means to feed our people but also as a catalyst for industrialisation and job creation across the region. “That can be achieved through re-industrialisation of the North, especially by reviving the textile value chain and development of other agro-allied industries”, it said.

The group further called for roles for traditional rulers, saying, “Forum advocates for increased roles for the traditional institutions to maximise cooperation with security agencies in the fight against kidnap for ransom, banditry, cattle rustling, communal clashes, farmers/herder clashes and other forms of criminality.

“Forum acknowledges the recent gains made against criminals, especially the elimination of bandits and terror leaders.

“Forum emphasised that traditional institutions are critical in the quest for lasting peace and security in the region”.

The group also commended President Tinubu for the reform initiative in the livestock sub-sector and agreed to provide the necessary political will and commitment to ensure its success.

Our interventions would be felt – Uba Sani

In his remarks, the host for the event and Kaduna State Governor, Sani, said the Northern Governors Forum and the Northern Traditional Rulers Council would make their marks as effective platforms for addressing the security and developmental challenges confronting the North.

He emphasised the need for the leaders to work together to realise their vision of a secure, peaceful and prosperous North.

He further used the opportunity to commend President Bola Ahmed Tinubu, for reinvigorating the war against terrorists, bandits, kidnappers and other criminal elements in the region.

He said the establishment of a joint military command and launch of Operation Fansan Yamma are clear demonstrations of the federal government’s commitment to tackle the multidimensional challenges of insecurity confronting the region.

Almajiri, out-of-school children, major problems– Sultan

Also speaking at the event, the Sultan said the issues of almajirai and out-of-school children remain serious challenges confronting the northern Nigeria.

He urged the governors to include these issues in their discussions, emphasising the need to address them urgently.

The Sultan added that as leaders, they would support the Almajiri and Out-of-School Children Commission.

“The issue of out-of-school children and Almajiri is a core problem for all of us. When you go around the states, towns, cities, and villages, what you see is very unpleasant.

“We have so many children—hundreds, if not thousands, or millions—roaming about. This commission must be supported by all of us so that it succeeds. I am sure if it succeeds, we will all say yes, we are on the way to the world of freedom. Once you educate somebody, you have given him the freedom to be himself, to work for himself, and to work for humanity.

“We are ready to work with you, and you can reach out to us anytime. I have a strong belief that this set of Northern governors will turn the tables and make the North a better and safer place.

“Please, listen to us when we say certain things; we are not criticising you. We are stating things as they are, as we hear from our people. All you need to do is listen patiently because a leader must be patient with the people he is leading.

“You cannot know it all. You don’t know it all and will never know it all. When you bring good people close to you, and they advise you and you act on it, you will take the glory, and people will say this governor is excellent, not knowing there are people working for him 24/7. So, let’s work together because there is a new sense of direction and commitment with the present governors,” he said.

ACF speaks

The Arewa Consultative Forum (ACF), while reacting to the governors’ position, said this is not time for party politics and party loyalty.

Speaking with Daily Trust yesterday, the ACF National Publicity Secretary, Professor Tukur Muhammad-Baba encouraged the governors to get more involved in grassroots affairs, especially things to do with the socio-economic conditions of the people.

While commending the governors for their position, he said it is an indication that some people are aware of what the North is going through.

“The call by the governors and traditional rulers is very much in order because one of the things that have been happening is that most elected public officials have been mute about the suffering of the people in the North.

“The position of the governors is actually commendable. We called for more active involvement of the governors towards addressing problems in the North,” he said.