The Coalition of Northern Groups, Taraba State chapter, has alleged that the proposed Tax Reform Bill by President Bola Ahmed Tinubu’s administration is cleverly designed with premeditated intent to further develop the South at the expense of the North.

The northern youths, lamenting the economic hardship in the country, concluded that the effects of these policies are more severely felt in their region.

Aside from the new Tax Reform Bill, the group also condemned the federal government’s land-border closure, alleging that the policy favours the South more than the North.

Speaking on Saturday during a press conference in Jalingo, the Taraba State capital, the group issued a statement signed by its coordinator, Comrade Idris Ayuba.

The statement alleged that most challenges faced by the North are repercussions of government decisions, citing the removal of petroleum subsidies, land-border closures, and the new tax regime as examples.

“Reduction in the consumption of a capital commodity like petroleum, occasioned by the subsidy removal, is not a manifestation of positive policy impact; it rather indicates reduced economic activities that force people out of energy consumption,” Idris said.

On the land-border closure, he remarked, “One of the primary concerns is the impact of this policy on the regional economy, which has been heavily reliant on cross-border trade with neighbouring countries. The closure has resulted in significant losses for traders and business owners in the region, exacerbating poverty and unemployment.”

He added, “The policy has given undue advantage to Southern Nigeria. For instance, the closure has led to an increase in demand for locally produced goods in Southern Nigeria, boosting the southern regional economy. Additionally, the Southern region has benefited from the increased revenue generated from customs duties and taxes on imported goods.”

The coordinator further claimed that the closure created an imbalance in the distribution of economic opportunities, with Southern Nigeria having greater access to ports and international trade routes.

“This has resulted in a concentration of economic activity in the Southern region, further marginalizing Northern Nigeria,” he explained.

The group also criticised the new tax reforms, particularly the revenue-sharing formula, saying it would disproportionately affect Northern Nigeria.

“One potential impact is a reduction in the region’s revenue allocation, which could hinder its ability to fund development projects and provide essential services to its population,” the statement read.

According to the group, Northern Nigeria already faces significant developmental challenges, including poverty, infrastructure deficits, and limited access to education and healthcare. A decrease in revenue allocation could exacerbate these issues.

The group warned that the proposed reforms would widen the economic gap between Northern and Southern Nigeria.

“Since the Southern region is already home to many of Nigeria’s major industries and economic hubs, a more favourable revenue-sharing formula could further consolidate its economic advantage. This could lead to a brain drain and talent flight from Northern Nigeria, as individuals seek better economic opportunities in other parts of the country,” they said.

The group urged policymakers to consider the potential impacts of these reforms and ensure they do not worsen existing economic inequalities.

They noted that the North’s contributions to the nation’s coffers should not be solely measured by economic output, emphasizing the importance of recognizing the agricultural sector’s role in national food production.

“It’s essential to acknowledge the historical and structural inequalities that have hindered the North’s economic development. The proposed tax reform bill should aim to address these disparities rather than perpetuate them. A more equitable revenue-sharing formula would recognise the North’s unique challenges and contributions, ensuring the region receives a fair share of national revenue,” they stated.

The group also lamented the many abandoned federal government projects in the North, including the Mambilla Hydroelectric Project, which has faced over 40 years of delays despite its potential to generate 3,050 megawatts of electricity.

Similarly, they cited the Jalingo-Numan Road project, which has lingered for over 15 years without tangible commitment to its commencement.

“The failure to complete these projects perpetuates the existing disparities between the North and the South. The lack of investment in critical infrastructure hinders the region’s ability to attract businesses, create jobs, and stimulate economic growth,” they added.