Dogara slams northern leaders for mismanagement, says tax reforms will drive change

• NLC demands halt to bills, urges broader consultation with workers
• Aggressive taxation: Northern group warns of risks to small businesses, informal sector

Former Speaker of the defunct 9th House of Representatives, Yakubu Dogara, has attributed the North’s current state of backwardness to its leaders. He also urged Nigerians to support President Bola Tinubu in transforming the nation through the tax reform bills currently awaiting the endorsement of the National Assembly.

Dogara spoke yesterday at a town hall meeting for Christian leaders in northern Nigeria, where he served as a guest speaker. The event, themed “Church and Society: Tax Reforms and Matters Arising”, addressed issues surrounding governance and development.

The former Speaker lamented how Arewa political leaders have mismanaged opportunities to lead Nigeria for over 40 years, leaving the region plagued with poverty and underdevelopment.

According to Dogara, northerners should resist the temptation to blame President Tinubu for the North’s current plight. He emphasised the need to unite in supporting the tax reform bills, which he said were designed to bring transformation to the North and Nigeria as a whole.

“We are all northerners, and it should be made clear that President Tinubu or the South is not our problem. They have not come to cheat the North. That is out of the question. Some are claiming that Yoruba people are getting appointments, but let’s reflect. We ruled this country for over 40 years when northerners were in power. What did we achieve? The North remains the same, impoverished by our own leaders,” Dogara said.

He continued: “There was a time in this country when the President, the Senate President, the Speaker, all the security chiefs, and most senior positions in the NNPCL were occupied by northerners. Out of 22 top positions, 20 were held by northerners. Did the North fare better during this period? The answer is no.”

Dogara further criticised northern leaders, saying, “We are the architects of our own misfortune. We must hold our leaders accountable, not blame Tinubu or the South.”

Speaking on Value Added Tax (VAT) and federal allocations received by states, Dogara asked, “We have had so much, but what did our governors do with the resources? They squandered them instead of investing in meaningful development.”

He also cited the Ajaokuta Steel Industry, initiated by the Shagari administration, which was 98 per cent completed but was later allowed to deteriorate. “The project was almost finished, yet it was left to rot,” he said.

Dogara urged northerners to support President Tinubu’s efforts to transform the country through the tax reform bills currently in the National Assembly. He noted that Nigeria is currently operating under 11 outdated tax laws, adding, “We cannot continue business as usual and expect to attract foreign investors. If foreign investors are to come to Nigeria, the first thing they will consider is our tax laws. These are part of what President Tinubu seeks to reform.”

Meanwhile, the Executive Director of Christian Awareness Initiative of Nigeria (CHAIN), Rev. Joseph John Hayab, stated that the organisation was established in 2007 to provide platforms and opportunities for Christians to explore effective ways of participating in Nigeria’s national life, particularly in areas related to spiritual, social, and economic growth. He explained that this focus informed the theme of the town hall meeting.

Hayab urged Christian leaders to deliberate on the issue of tax reforms currently being considered by Nigeria’s legislative arm. He said, “Scripturally, Jesus taught his disciples to pay their taxes faithfully and regularly to those to whom taxes are due. Therefore, the subject of taxation is not foreign to believers.”

He added, “The pressing questions we must answer are whether these reforms are beneficial to the average Nigerian and why they are being introduced.”

Hayab emphasised the need for Christian leaders to actively engage in matters of national importance, stating, “At CHAIN, we believe Christian leaders should not remain on the sidelines regarding national issues. Their followers trust them and look to them for guidance.”

He continued, “While the discussion on the tax reform bill should ideally have begun much earlier, it is better late than never. We appeal to all Nigerians to refrain from condemning or supporting policies they know little about. Nigeria must move forward, and citizens should avoid engaging in religious or ethnic sentiments or divisive actions that could derail the country’s progress.”

Hayab further highlighted the potential benefits of the tax reform bill, saying, “From expert analyses, there are indications that the bill has significant prospects, even though certain areas require refinement and realignment. Leaders, when properly informed, can make meaningful recommendations and encourage their representatives at the state and national levels to address these issues. The aim should be to ensure the bill is passed in an improved form, rather than calling for its outright rejection.”

He concluded, “Nigeria cannot afford to continue with outdated methods that have hindered our progress. Nations are built through the positive contributions of their citizens. Every citizen has an essential role in nation-building and must be supported and allowed to fulfil that role.”
HOWEVER, the Nigeria Labour Congress (NLC) called for the suspension of the tax bill to allow for broader consultation and meaningful engagement with Nigerian workers.

The congress described the exclusion of organised labour from the formulation of the bill as unacceptable, arguing that it undermines the principles of tax justice.

In a communique issued after its National Executive Council (NEC) meeting in Owerri, Imo State, on Wednesday, NLC President Joe Ajaero and General Secretary Emmanuel Ugboaja stated that the politicisation of the bill and the alienation of key stakeholders could render it ineffective in reviving the economy. They emphasised that only through inclusive dialogue can Nigeria ensure a just and equitable tax system.

The NLC also raised concerns about the socio-economic conditions across the country, blaming government policies for exacerbating hardships. They stressed that discussions on taxation must involve those who bear its burden—workers—arguing that excluding labour from these discussions would undermine the system’s fairness.

The congress also gave the Edo State government and the police a deadline of January 8, 2025, to vacate the state’s NLC secretariat. Failure to comply, they warned, would result in unprecedented measures to defend workers’ and trade union rights. The congress accused authorities of attempting to impose an illegitimate leadership on the workers through unlawful actions.

Relatedly, a group of leaders from the Northern region, under the League of Northern Democrats (LND), called on the Federal Government to address critical issues surrounding the proposed tax reform to prevent adverse economic and political consequences.

Speaking at a public presentation in Abuja yesterday, the group, led by former Kano State governor Ibrahim Shekarau, warned of potential challenges if equity and burden distribution concerns were not resolved.

Shekarau highlighted questions about the fairness of the proposed measures, particularly their impact on small businesses and lower-income groups. He also expressed concerns about the feasibility of implementation, noting the capacity of tax authorities to monitor and enforce the provisions effectively.

“There is a risk of alienating participants in the informal sector through overly aggressive taxation policies,” he said. The group raised issues about revenue allocation, questioning whether the reforms would address existing imbalances between the federal, state, and local governments. They also warned of the dangers of over-taxation, which could stifle economic activities by overburdening businesses and investors.

The LND proposed constitutional compliance in aligning tax administration and bills with Nigeria’s constitutional provisions, particularly on inheritance taxation, to respect religious and cultural practices.

The group further suggested that VAT distribution should be based on the derivation principle to ensure equity and promote regional development. To broaden the tax base and enhance compliance, the LND urged the government to support the informal sector by providing training, access to finance, and proper address systems.