Economy

Northern govs fault proposed tax reform bill, urge NASS to block amendments unfavourable to sub-national interests

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    The Northern States Governors Forum has expressed strong disapproval of the recent Tax Reform Bill submitted to the National Assembly, describing it as detrimental to the interests of the northern states and other sub-national regions.

    In a joint statement released after a meeting held with the Northern Traditional Rulers Council—including Emirs and Chiefs—on Monday, October 28, in Kaduna, the governors voiced concerns over the potential impacts of the proposed reforms on regional economies and revenue allocation.

    A key point of contention for the Northern Governors is the amendment that seeks to alter the distribution model of Value Added Tax, VAT, revenue to one based on derivation, whereby funds would be allocated based on the location of service provision and goods sales rather than where company headquarters and tax offices are situated.

    The governors argued that such a shift would unfairly benefit states with corporate offices and disadvantage states where goods and services are consumed, impacting critical revenue streams for northern states and other regions without major corporate hubs.

    The Forum’s communique stated that the governors stand united in rejecting the proposed tax changes, viewing them as potentially harmful to the economic stability of northern states.

    They called on federal legislators to protect the welfare of all Nigerians by voting against any bill that would disadvantage sub-national entities and undermine equitable revenue sharing.

    “The Northern Governors’ Forum is not averse to any policies or programmes that will ensure the growth and development of the Country.

    “However, the Forum calls for equity and fairness in the implementation of all national policies and programmes so as to ensure that no geopolitical zone is short-changed or marginalized,’’ the communique stated.

    The Forum also called on the Federal Government and relevant Agencies to urgently address the current electricity power blackout affecting most Northern States due to the vandalization of electricity transmission infrastructure.

    “This matter not only underscores the vulnerability of critical infrastructure, but also the need to build additional transmission lines and diversify our energy supply so as to better connect our region and improve our energy resilience,’’ the Governors argued.

    The Northern Governors Forum issued a communique following their recent meeting, addressing the impact of the August ‘End Bad Governance’ protests.

    The protests, they noted, underscored the need for proactive measures to address youth restiveness. In response, the governors have pledged to enhance investments in education, skills training, job creation, and other opportunities that enable youth to engage in productive pursuits, reducing their susceptibility to crime and social issues.

    The governors underscored the essential role of Traditional Institutions in achieving sustainable peace and security, emphasizing their value in connecting the government with local communities.

    The Forum called for expanded responsibilities for these institutions, advocating for their involvement alongside security agencies to combat crimes such as kidnapping for ransom, banditry, cattle rustling, communal violence, and farmer-herder conflicts.

    In their statement, the governors also acknowledged recent successes in the fight against criminal groups, including the neutralization of high-profile bandits and terror leaders, and resolved to maintain these gains to ensure continued peace and stability in the region.

    The Forum extended its appreciation to the Federal Government and security forces for their ongoing efforts to safeguard communities, emphasizing their shared commitment to a safe and secure future for all residents in Northern Nigeria.

    “Particularly, we commend the untiring commitment of the Chief of Defence Staff General C. J Musa whose professionalism and innovative approach has made difference in security architecture of the Country at large. Nevertheless, more needs to be done to address pockets of challenges that abound in the Northern Region,’’ they said.

    The communique highlighted that Northern Nigeria possesses vast agricultural potential, which, if effectively utilized, could play a major role in reducing hunger and driving economic development.

    “To achieve this, we resolved to provide adequate support to our farmers, including access to financing, modern farming techniques and infrastructure such as roads and irrigation systems.

    “Agriculture should not only be seen as a means to feed our people but also as a catalyst for industrialization and job creation across the region. That can be achieved through re-industrialisation of the North especially by reviving the textile value chain and development of other agro-allied industries.

    “Forum commends His Excellency, the President and Commander-In-Chief of the Armed Forces of the Federal Republic of Nigeria for the reform initiative in the livestock sub-sector and agreed to provide the necessary political will and commitment to ensure the success of the Federal Government livestock development initiatives.

    “Forum extended its deepest sympathies to the victims of the recent flood disasters in Maiduguri and other parts of the North, as well as to the families affected by the tragic tanker explosion in Jigawa State.

    “The Forum equally commiserates with other victims of terrorism, banditry and similar criminal activities in the North and Nigeria at large and stand in solidarity with them during these difficult times.

    “We agreed to continue to work with the Federal Government and relevant agencies to provide the necessary support and relief to those affected.

     

     

    “On the present economic hardship affecting the Country, the Forum is appealing to all citizens to remain calm, as the states and Federal Government are working hard to implement measures that will cushion effects of the hardship.’’

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