Tax Reform Bills: Abbas, Barau must safeguard northern interests

The ongoing discussions surrounding Nigeria’s tax reform bills have generated significant interest across the country. As the federal government seeks to increase revenue and streamline tax administration, it is imperative to examine the regional implications of these reforms. For Northern Nigeria, a region with unique economic characteristics and persistent developmental challenges, these changes could have […]

The ongoing discussions surrounding Nigeria’s tax reform bills have generated significant interest across the country. As the federal government seeks to increase revenue and streamline tax administration, it is imperative to examine the regional implications of these reforms. For Northern Nigeria, a region with unique economic characteristics and persistent developmental challenges, these changes could have far-reaching consequences.

In this context, Speaker of the House of Representatives, Abbas Tajudeen and Deputy President of Senate, Senator Jibrin Barau have a critical responsibility to ensure that the North’s interests are not sidelined. Their leadership positions provide them with the influence needed to shape policies that balance national revenue objectives with regional equity.

The proposed tax reform bills are part of the federal government’s broader strategy to diversify revenue sources, reduce dependence on oil, and close fiscal gaps. Among the reforms are measures to increase tax rates on certain goods and services, improve tax compliance, and expand the tax base to include previously untaxed sectors.

While these objectives align with global best practices in tax policy, the Nigerian context—characterised by stark regional economic disparities—necessitates careful consideration. The North, for instance, lags behind other regions in terms of industrialisation and per capita income, with a predominantly agrarian economy. Any tax policy that fails to account for these realities risks exacerbating inequality.

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Taxation is not a one-size-fits-all policy tool. Its impact varies across regions based on economic activities, income levels, and administrative capacity. For Northern Nigeria, which faces lower levels of formal economic activity, higher poverty rates, and limited infrastructural development, an increase in tax burdens could stifle growth and deepen existing challenges.

For example, raising Value Added Tax (VAT) or imposing higher excise duties on essential goods could disproportionately affect Northern households, where disposable incomes are already stretched thin. Similarly, efforts to broaden the tax net without adequate support for informal sector operators—many of whom are based in the North—could disrupt livelihoods without significantly increasing revenue.

As Northern representatives in key legislative roles, Speaker Abbas and Senator Barau are uniquely positioned to advocate for policies that safeguard the region’s interests. Their influence in the National Assembly offers an opportunity to ensure that the tax reform bills are designed with inclusivity and fairness at their core.

Speaker Abbas, leading the House of Representatives, must rally lawmakers to scrutinise the proposed reforms, particularly their potential impact on economically vulnerable regions. He should champion amendments that prioritise equity, such as tiered tax rates based on regional economic capacities or exemptions for essential goods commonly consumed in the North.

Similarly, Senator Barau, as Deputy President of the Senate, has a pivotal role in guiding discussions within the upper chamber. His legislative expertise and network within the Senate provide him with the tools to push for nuanced policies that do not mortgage the North’s economic future for short-term revenue gains.

The tax reform bills represent an opportunity to reshape Nigeria’s fiscal policy for the better. However, the pursuit of increased revenue must not come at the expense of regional equity and social justice. Speaker Abbas and Senator Barau must leverage their positions to champion policies that reflect the realities of the North’s economy and its people.

Civil society organisations, traditional institutions, and other stakeholders in the North must also remain vigilant, engaging actively with lawmakers to ensure their voices are heard. Tax reform should be a tool for national development, not a vehicle for perpetuating inequality.

Ultimately, the success of these reforms will be measured not just by the revenue they generate but by their ability to foster a more inclusive and equitable Nigeria. In this critical moment, Speaker Abbas and Senator Barau have a duty to ensure that the North is not left behind. Their leadership can make the difference between reforms that uplift the entire nation and those that deepen its divisions.

By advocating for fairness, equity, and development-focused policies, they can help lay the foundation for a prosperous and united Nigeria.

Abdullahi Abubakar, a public affairs commentator wrote from Abuja