• No provisions will impoverish the North or scrap TETFUND, NASENI, NITDA , Presidency assures
• Atiku, Northern lawmakers, Governors reject tax reforms
'Seun Ibukun-Oni, Abuja
Tayo Busayo, Abuja
DAILY COURIER - The Federal Government's proposed tax reform bills, spearheaded by President Bola Ahmed Tinubu, have sparked a nationwide debate, drawing both staunch criticism and emphatic defense. While northern political heavyweights warn of dire socioeconomic implications for their region, the presidency has reassured Nigerians that the bills are aimed at modernizing and streamlining the nation's tax system without impoverishing any region.
Presidency defends reforms amid allegations
In a statement by Bayo Onanuga, Special Adviser to the President on Information and Strategy, the presidency dismissed claims that the reforms would favor wealthier states like Lagos and Rivers to the detriment of other regions, particularly the North. It also refuted rumors that the reforms propose scrapping key agencies such as NASENI, TETFUND, and NITDA.
“The bills seek to consolidate taxes into a single framework to ease the burden on businesses, improve efficiency, and encourage investments. Claims that they would destroy regional economies or scrap vital institutions are baseless and misleading,” Onanuga stated.
The presidency emphasized that earmarked taxes funding NASENI, TETFUND, and NITDA would be replaced with consolidated taxes, ensuring continued support for these agencies while reducing the strain on businesses.
Northern leaders voice concerns
Key northern figures, including former Vice President Atiku Abubakar and Borno State Governor Babagana Zulum, have expressed strong reservations. Atiku called for transparency in the legislative review process, stressing the need for fairness and equity to address regional disparities.
“I firmly believe the fiscal system we seek must not exacerbate uneven development. Transparency and objectivity are essential for public trust and accountability,” Atiku said in a statement.
Zulum criticized the speed of the legislative process, arguing that reforms of such magnitude deserve thorough deliberation. “The Petroleum Industry Bill took nearly two decades to pass. Why the rush with these reforms? If not handled carefully, the North could suffer disproportionately,” he told BBC Hausa.
House of Reps halts debate amid pressure
The House of Representatives has indefinitely suspended debates on the bills following mounting pressure from northern governors and 73 northern lawmakers. A memo from the Clerk of the House, Dr. Yahaya Danzaria, confirmed the suspension, citing the overwhelming concerns raised by stakeholders.
Kano State lawmakers, in a meeting chaired by Deputy Governor Aminu Gwarzo, also rejected the reforms, with Representative Idris Dankawu declaring, “We will work collectively to ensure this bill is withdrawn in the interest of Kano State and the North.”
Understanding the tax reform bills
The proposed legislation includes four bills: Nigeria Tax Bill; Nigeria Tax Administration Bill; Nigeria Revenue Service Establishment Bill; and Joint Revenue Board Establishment Bill.
These bills aim to simplify tax administration, reduce corporate tax rates, exempt small businesses earning below N50 million from tax, and modernize tax collection using technology. Additionally, low-income earners earning N800,000 or less annually would be exempt from income tax.
Broader implications and next steps
While critics argue the reforms could widen regional economic gaps, the presidency maintains that the changes will foster fairness, streamline tax administration, and create a conducive environment for businesses. President Tinubu has called on stakeholders, including governors, traditional rulers, and civil society, to participate in public hearings to shape the reforms.
As debates continue, analysts note the challenge of balancing fiscal modernization with equitable development, highlighting the need for consensus to avoid deepening regional tensions in an already polarized nation.
