Borno State Governor, Prof. Babagana Zulum has cautioned that, although President Bola Tinubu has the executive power to push through the tax reform bills, doing so could have significant consequences for millions of Nigerians.
The bill, which passed its second reading in the Senate, is facing strong resistance, particularly from Northern elites. Groups like the Northern Governors Forum, Northern Elders Forum, the National Economic Council (NEC), and Senator Mohammed Ali Ndume have urged its withdrawal, arguing it neglects regional interests.
Appearing on Channels Television’s Politics Today on Sunday, Zulum said: “We know the power of the president. I’m a system man; I respect him.
“If the President wants to use his power to pass the tax bill, he may have his way, but it has its consequences on the people”.
The governor also stated that only Lagos and Rivers States would benefit from the new tax scheme, adding that the North is merely asking for more time to consult and fully understand the bills.
He said: “On this tax issue, there are a lot of misconceptions. At NEC, we advised the federal government to pause for a moment in order to have deeper consultations with stakeholders.
“We felt that the VAT (Value Added Tax) provision in the tax law, which clearly stated that VAT allocation should be based on derivation… the proposed bill further stated that 60 percent of the VAT tax will be shared based on derivation.
“I’m not an economist but based on the calculations that we did, only Lagos and Rivers States will benefit from this scheme. We did our own research and concluded that we would lose.
“The matter is that why are we in a rush? We advise the federal government to take a pause and remove some of the clauses in the tax bill that are inimical to the growth and development of not only northern Nigeria… south-east and south-south will be severely affected.
“We are in a democracy. We should understand the nitty-gritty of this tax regime. This is our bone of contention”.
