Tax reform bills won’t impoverish North – Presidency

The Presidency has dismissed claims that the proposed tax reform bills before the National Assembly would impoverish northern Nigeria and would only benefit Lagos and Rivers states.

In a statement released on Monday, December 2, presidential spokesperson, Bayo Onanuga, said the reforms aim to improve the quality of life for all Nigerians, particularly the disadvantaged, and streamline tax administration to foster a better business environment. 

The statement followed concerns raised by Borno State governor, Babagana Zulum, who claimed that the proposed Value Added Tax (VAT) sharing model will only favour states like Lagos and Rivers states. Zulum expressed this while speaking on Channels TV over the weekend.

Reacting to his position, Onanuga described such reactions as unfounded and based on misinformation.

“The tax reform bills will not make Lagos or Rivers states more affluent than others, nor will they impoverish any region,” Onanuga stated, urging Nigerians to reject attempts to polarise the nation over the bills.

He clarified that the bills do not propose scrapping agencies like the Tertiary Education Trust Fund (TETFUND), the National Agency for Science and Engineering Infrastructure (NASENI), or the National Information Technology Development Agency (NITDA).

He said these agencies will continue to operate and receive funding through budgetary allocations.

The spokesperson added that President Bola Tinubu’s tax and fiscal policy reforms are intended to simplify tax collection, alleviate the burden on businesses, and support national development.

Meanwhile, former Speaker of the House of Representatives, Yakubu Dogara, has called on Northern leaders to approach the ongoing tax reform bills before the National Assembly with pragmatism rather than sentiments.

Speaking during a Channels Television town hall on the reforms in Abuja on Monday, Dogara emphasised the need for leadership that prioritises the region’s future development over ethnic or religious biases.

“We Northern leaders should remove the cap of ethnicity and religious sentiments and put on the cap of leadership to face the reality, which the bills will bring,” Dogara stated.

He criticised senators who claimed insufficient consultation on the bills, questioning their own practices in lawmaking.

“How many people do they consult when making laws? Some state laws are written in the living rooms of governors,” he said, dismissing arguments that the bills’ popularity is more important than its impact.