Atiku, Zulum lead Northern opposition against tax bills ahead of NASS debate

As the controversy surrounding the proposed Tax Reform Bills in the National Assembly rages and while lawmakers reassemble this week to determine its fate, former Vice President Atiku Abubakar has called on the National Assembly to exercise caution as they deliberate on the bill submitted by President Bola Tinubu, urging them to revisit and make public the resolutions of the National Economic Council (NEC) on the Tax Reform Bills.

The bills, which though have passed second reading at the Senate, is facing its sternest opposition from the North with all facets of the region – governors, monarchs, youths, think-tanks and voices of reason – all in agreement to opposite the bills.

At the weekend, Borno State Governor, Babagana Zulum, voiced strong concerns over the proposed bill, warning that it could have devastating consequences for the Northern region and cripple its economy.

Speaking yesterday on Channels Television Politics Today, Zulum reiterated his stance that the bill, warning against the potential consequences of passing the tax reform bill without adequate consultation.

Zulum emphasised that if the president uses his power to push the bills through, there will be severe consequences. He dismissed insinuations that he was against President Tinubu’s administration, as he is a strong member of the All Progressives Committee (APC) and was the first governor to advocate for power to shift to the South.

Zulum argued that the bill, as it stands, would only benefit Lagos State, while other regions, including those in the Southeast and South-South, would suffer.

He also expressed concerns about the potential impact on education, citing the proposed scrapping of TETFUND by 2029 in the bill.

As a former head of a polytechnic, Zulum attested to the support TETFUND has provided to education. He stressed that the bill’s provisions, such as the allocation of 60 per cent of the VAT to Lagos, would have detrimental effects on the country.

The governor urged the Federal Government to take a break and reconsider the bill, removing clauses that are detrimental to the people’s growth.

He stressed the need for consultation in a democratic country, stating that the people have the right to be consulted and to have their voices heard.

“There are some rhetoric that the North destroys alcohol, so, they should not benefit from the tax coming from it. My point is let us have a wider consultation on it. Why are we in a rush? It is right that we call on our legislators to kick against any attempt to sub-change us.”

Also weighing in yesterday, Atiku emphasised the need for a tax regime that ensures fairness and equity without deepening the disparities in development among Nigeria’s federating units.

In a post on his X handle, Atiku said that the National Assembly must be guided appropriately to ensure that in the final analysis, the contents of the bills align with the interests of most Nigerians.

“I call on the NASS to revisit and make public the resolutions of the National Economic Council, a key stakeholder and an important organ of the state with the constitutional power to advise the President concerning the economic affairs of the Federation. The NASS must be appropriately guided and ensure that in the final analysis, the contents of the Bills align with the interests of the vast majority of Nigerians,” the post read in part.

The Peoples Democratic Party’s (PDP) presidential candidate in the 2023 election, who said he has followed the intense public discourse on the Tax Reform Bills with keen interest, noted that Nigerians are united in their call for a fiscal system that promotes justice, fairness, and equity.

According to him, Nigerians are “loud and clear that the fiscal system we seek to promote must not exacerbate the uneven development of the federating units by enhancing the status of a few states while unduly penalising others.”

He also called on the House of Representatives to be objective and transparent in the conduct of its public hearing on the Tax Reform Bills.

Also, the Coalition of Northern Groups (CNG) has voiced concerns that the bill may disproportionately benefit economically advanced states, leaving Northern at a disadvantage.

The group’s Gombe State chapter, led by Muhammad Usman Deba, raised concerns over the bill’s potential to widen economic disparities, particularly through its provisions on the Value Added Tax (VAT) reform. The CNG opposes the bill’s proposed VAT sharing formula, which allocates VAT revenues based on the state where the revenue is generated.

According to Deba, the reform could deepen the economic divide between the North and South, leading to social unrest, increased migration, and further marginalization of the northern states. The group also criticized the lack of transparency in the decision-making process, pointing out that there has been no comprehensive data or analysis provided to justify the changes.

Amid the raging debate over the bills, a non-political group known as Southern Borno Concerned Citizens (SBCCs) has urged all its members across nine local government areas and those in the diaspora to embark on a one-day fasting today in solidarity with Zulum and Senator Mohammed Ali Ndume, who have stood firm in opposing the bills.

In a statement by the chairman of the group, Bulama Sawa said: “Following extensive deliberations with scholars and in response to the contentious Tax Reform Bills currently before the National Assembly, the SBCCs is declaring a one-day fasting and prayer session to seek divine guidance and support for our leaders as they strive to protect the welfare of the masses. We stand firmly with Governor Zulum, Senator Ndume, and all other patriotic leaders who prioritise the needs of the people over partisan interests.”

In a glaring show of polarisation along regional lines, the Ohanaeze Ndigbo Worldwide has declared its total support for President Tinubu’s tax reform bills.

The Igbo apex socio-cultural organisation disclosed this in a statement by its Secretary-General, Okechukwu Isiguzoro on Sunday.

According to Isiguzoro, the endorsement came after exhaustive consultations. He then urged all stakeholders, including lawmakers, business actors, and citizens, to unite in support of the bills.

“In an emphatic affirmation of progress and economic empowerment, Ohanaeze Ndigbo hereby announces its steadfast endorsement of President Tinubu’s proposed Tax Reforms Bills. The Igbo people, renowned for our entrepreneurial spirit and unwavering commitment to economic self-determination, stand to gain immensely from these reforms. The proposed measures are expected to safeguard the private sector, particularly benefiting the industrious Igbos who plays a pivotal role in driving the Nigerian economy through vibrant SME activities.

“In light of these compelling advantages, Ohanaeze Ndigbo ardently calls upon all Southern Federal lawmakers—both in the Senate and the House of Representatives—to unify their efforts in support of President Tinubu’s transformative restructuring program within Nigeria’s economic and fiscal sectors.”

In same vein, the Coalition of United Political Parties (CUPP) also threw its support for the tax bills, saying each state deserved its fair share of the VAT generated by it and should not expect to share equally with states that generated lesser or more.

National spokesperson of the coalition, Mark Adedayo, said the contradictions in Northern opposition to the tax reform are glaring. “While the Tinubu government’s so-called economic reforms are not working in favour of regular Nigerians, the North has shot itself on the foot by its discrimination against certain products. For instance, if you have banned alcohol in your domains, you can’t expect to share accruable taxes from alcohol.”

Furthermore, the Yoruba Youth Socio-Cultural Association (YYSA), on Sunday, appealed to citizens of the North to see President Tinubu’s tax reforms as a crucial step to turnaround revenue generation in Nigeria and the economy generally. National President of the group, Olalekan Hammed, made the call in a chat with The Guardian in Ibadan, the Oyo State capital.

Hammed stated that the bill contains creative ideas that should be unanimously supported by all Nigerians.

He said: ‘’According to the Senate Leader, Opeyemi Bamidele, these bills aim to simplify the tax landscape, reduce the burden on small businesses, and streamline tax collection.

“Moreover, the aspect of the bills that seem unfriendly to Northern people is the proposed shift in VAT revenue distribution, allocating revenues based on states where goods and services are consumed rather than pooling them centrally for redistribution. However, there is nothing panicky about this because only change is constant. We cannot continue doing things the same way and expect development.”

He said there should be a paradigm shift and every region should be ready to face challenges, if not, there would be no room for creativity and advanced thinking.