Tax reform: Tinubu should unite, not divide Nigeria – Bala Mohammed

Governor Bala Mohammed of Bauchi State has called on President Bola Ahmed Tinubu to reconsider the recently proposed tax reform bills, urging that they be reviewed with a focus on unity rather than division. He appealed to the president to halt the bills’ progress and conduct wide consultations to ensure they were fair and balanced […]

Governor Bala Mohammed of Bauchi State has called on President Bola Ahmed Tinubu to reconsider the recently proposed tax reform bills, urging that they be reviewed with a focus on unity rather than division.

He appealed to the president to halt the bills’ progress and conduct wide consultations to ensure they were fair and balanced before being passed into law.

The proposals, particularly the shift to a derivative-based model for distributing value-added tax (VAT), sparked strong objections from northern governors and traditional leaders. 

They argue that the model would disproportionately disadvantage less industrialised regions, especially the northern states. 

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Despite these concerns, the president has rejected calls to withdraw the bills.

Speaking on BBC Hausa Service, Governor Bala warned that the proposed tax reforms would worsen the economic hardship already faced by many northern states.

“Any reform to the tax bill, as it stands, is a recipe for further impoverishment of the north. What we need is a debate on a tax system that will not harm any region,” Governor Mohammed said.

He explained that northern states, many of which already face significant financial challenges, would be further strained by the proposed tax model. For instance, he pointed out that Bauchi State struggles to meet its salary obligations due to insufficient funds.

“We receive about N2 billion in monthly federal allocation, but our salary bill stands at N4 billion, with local government salaries alone amounting to N3 billion. We also do not receive any derivatives from oil sales due to the current revenue-sharing formula,” he added.

He explained that while northern states are major consumers of goods and services-especially in industries like telecommunications-the tax revenue generated by these sectors often benefits southern states, where the companies’ headquarters are located.

This uneven distribution, according to Governor Bala, exacerbated the financial difficulties of northern states, urging the president to address this disparity and ensure that all regions are fairly represented in the revenue-sharing process.

“We are operating a federal system, and we are one country. No state or region should be disadvantaged in the distribution of revenue,” Governor Bala said.

He also expressed frustration at what he perceived as the president’s lack of willingness to address the concerns raised by northern leaders.

“If the federal government persists with this reform, we will be forced to mobilise our federal lawmakers, who are numerous, to block the bill,” he warned.

“It is as though the President wants to suffocate us, and we are not going to fold our arms or accept this,” he added.

The Bauchi governor also urged President Tinubu to reconsider his stance, reminding him that Nigeria operates under a democratic system where the voices of the people, through their representatives, should be respected.

He pointed out that even the president’s deputy, Kashim Shettima, and other representatives had already objected to the bill and called for its amendment.

Governor Mohammed called for a national dialogue on tax reform, one that aims to unite the country rather than divide it, ensuring that all regions are included in the pursuit of economic fairness and growth.