Borno Governor Babagana Zulum warns that the proposed tax reform bill could harm the North’s economy, urging President Tinubu to reconsider the legislation.
Borno State Governor, Babagana Zulum, has expressed deep concerns over the rapid progression of the proposed tax reform bill, warning that it could have severe consequences for Northern Nigeria and other regions of the country.
Speaking in an interview with BBC Hausa on Friday, Governor Zulum criticised the speed with which the bill is advancing through the legislative process, noting the stark contrast to the Petroleum Industry Bill, which took nearly two decades to pass.
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Governor Zulum questioned the urgency surrounding the tax reform bill, saying, “Why the rush? The Petroleum Industry Bill took almost 20 years before it was finally passed.
But this tax reform bill is being transmitted and receiving legislative attention within a week. It should be treated carefully and with caution so that even after our exit, our children will reap its benefits.”
He further alleged that the bill was structured in a way that would disadvantage certain regions of the country, particularly the North, and could have adverse effects on other regions such as the South East, South West, and certain South-Western states like Oyo, Osun, Ekiti, and Ondo.
Zulum warned that if the tax reform bill is passed, Northern states would face serious challenges in implementing developmental projects, with some even struggling to meet their payroll obligations.
“If these bills pass, we won’t even be able to pay salaries. And if we do, it won’t be sustainable the following year,” he lamented.
The governor added that both Northern and Southern lawmakers, including those from Lagos State, have expressed opposition to the bill, emphasising that it would hinder regional development.
“We are against it, and even Lagos State is against it. If this bill is dragging regions backward, why won’t they rescind it?” he questioned.
Zulum also appealed directly to President Bola Tinubu, urging him to review the tax bills and reconsider their impact on the North, a region that overwhelmingly supported his election.
“He secured 60% of his votes from the North. He should not listen to those telling him the North is not supporting him. What we need is the withdrawal of these tax bills,” Zulum said.
While stressing that the opposition to the bill was not an attack on the administration, the governor clarified that the North’s stance was purely based on the adverse implications the bill would have on the region’s development.
“This is our position, and it doesn’t mean we are against the government. We supported and voted for President Tinubu. But these bills will not be beneficial to us,” Zulum explained.
Meanwhile, the Nigerian Senate on Thursday passed the tax reform bills for a second reading following a heated debate.
The bills, which include the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill, aim to overhaul the country’s tax framework and improve tax administration.
The bills have now been referred to the Senate Committee on Finance, which has been given six weeks to review and report back.
Among other provisions, the bills propose the establishment of the Nigeria Revenue Service and a tax tribunal, along with measures to streamline tax collection and resolve disputes.
