Thursday, 13th March 2025
To guardian.ng
Search
Breaking News:
News  

Tax reform bills: Lamido, Galadima reopen anti-North rhetoric with inheritance tax

By John Akubo, Abuja
31 January 2025   |   5:47 am
Former Jigawa State governor and ex-Foreign Affairs Minister, Sule Lamido, yesterday threw up a new subject of controversy in what has been termed the ‘anti-North bill’ when he strongly opposed the proposed taxation on inheritance contained in President Bola Tinubu..
Former Governor of Jigawa State, Sule Lamido.

• Tax on inheritance is un-Islamic, says Lamido
• Galadima warns of political consequences if bill is passed
• Passage of tax bill will guarantee more revenue — Ekiti govt
 

Former Jigawa State governor and ex-Foreign Affairs Minister, Sule Lamido, yesterday threw up a new subject of controversy in what has been termed the ‘anti-North bill’ when he strongly opposed the proposed taxation on inheritance contained in President Bola Tinubu’s tax reform agenda, calling it a violation of Islamic principles.  
  
This is coming two weeks after proponents of the controversial tax reform bill secured consensus with the backing of the Nigerian Governors’ Forum (NGF) and as chairman of the Presidential Committee on Tax Policy and Fiscal Reforms, Taiwo Oyedele, looks set for the passage of the bill in March and full implementation by July this year.
   
Speaking in an interview with The Guardian, Lamido urged the President to adopt a more inclusive approach in implementing economic policies, warning that high-handedness in policy reforms could undermine national trust.
   
Lamido emphasised that Tinubu, as a Muslim, should be aware that Islamic law explicitly prohibits taxation on inheritance, as the Quran dictates clear guidelines for the distribution of a deceased person’s wealth. “There is no way you can tax money that is meant for inheritance. It is illegal, against God, and the Quran,” he stated.

   
He explained that in Islam, inheritance funds are primarily meant to settle debts and be distributed among rightful heirs according to divine instructions. Therefore, any attempt by the government to impose taxation on such wealth, he argued, would be a direct interference with religious doctrine and an unjust burden on bereaved families.
   
This is despite Oyedele’s recent clarification that the proposed tax reform bills do not include any provision for an inheritance tax.   According to Oyedele, the inheritance tax was abolished in Nigeria in 1996 following the abrogation of the Capital Transfer Tax Decree.
   
Dispelling speculations about such a tax in Nigeria’s fiscal policy, he explained that inheritance represents a one-time transfer of wealth, either as a gift during the giver’s lifetime or upon their death and differs fundamentally from recurring income subject to taxation under the proposed tax reforms.
 
“Inheritance tax is a one-time wealth transfer. Unlike inheritance tax, family income covered under the tax bills is expected to recur from time to time,” Oyedele stated.
   
He further highlighted the provisions of Section 4 of the Nigeria Tax Bill, which defines taxable income. Section 4(3), in particular, addresses taxable income earned by families, stressing that inheritance itself is not taxable under the bill. This approach aligns with existing tax laws, including Section 2(5) of the Personal Income Tax Act (LFN 2004 as amended).
   
Beyond the inheritance tax, Lamido also criticised Tinubu’s broader economic policies, particularly the abrupt removal of fuel subsidies on May 29, 2023, which he described as an “arrogantly executed” decision that worsened economic hardship for Nigerians. He urged the President to learn from past backlash and adopt a more consultative and transparent leadership style.
   
“Leadership requires engaging with the people, explaining decisions, and carrying citizens along. When policies are imposed without proper explanation, it breeds resentment and mistrust,” he warned.
   
Lamido also dismissed suggestions that opposition to the tax reforms should be met with threats, advocating instead for dialogue and understanding. He urged the President to foster unity by ensuring that policy decisions align with both economic realities and cultural values.
   
Speaking in the same vein, veteran Arewa politician, Buba Galadima, has warned of dire consequences if President Tinubu proceeds with the tax reform bills. Despite the backing of the 36 governors after some amendments to the proposed bills, he cautioned that there could be significant political and social consequences should they become law.  
 
 
Speaking on the matter, Galadima emphasised that every political decision carries ramifications that cannot be ignored, particularly when it concerns the welfare of the people and as the nation gears towards the next general elections in 2027.
   
“Peradventure Tinubu goes ahead with the tax bills and they are signed into law, what will happen? I’m not God, so I can’t say for certain, but everyone knows that political issues have political consequences,” Galadima stated.
   
He questioned the necessity of imposing additional hardships on Nigerians already grappling with economic strain. “The truth is who is the tax bill meant for? It’s for the people. If the people say, ‘It may be good for tomorrow, but now it is not good for us,’ a wise leader should pack it aside for now,” he advised.
   
He also criticised the government’s approach to decision-making, arguing that the current system often prioritises those who “shout the loudest” rather than addressing the needs of the most affected. “Is this how we are going to build a nation? No, not at all,” he stated.  
   
On the bargaining power of the North, Galadima pointed out the role the region played in delivering victory for Tinubu in the 2023 general election with over six million votes out of the total 8,794,726 votes that made him secure 36.61 per cent.
   
“This is a subtle reminder that the North holds the ace as far as the 2027 election will be concerned. According to the Independent National Electoral Commission’s (INEC) declaration, Atiku Abubakar of the Peoples Democratic Party (PDP) scored total votes of 6,984,520 (29.07 per cent) to come second, Peter Obi of the Labour Party scored total votes of 6,101,533 (25.40 per cent) and Rabiu Musa Kwankwaso of the New Nigeria Peoples Party (NNPP) scored total votes of 1,496,687 (6.23 per cent) to take the fourth position.

“So, the president can go ahead with his threats to pass the bills, but he should not forget that there are political consequences. However, I don’t want to divide this debate into ‘South’ versus ‘North’; we should all approach these matters in clear, unified terms. If anyone from this region of the country criticises the policies of the government, it is because they have a stake in it—they contributed to its establishment.”
 

 
However, the Ekiti State Government has revealed that the state would receive more revenue if the proposed tax reform bills by the Federal Government are passed by the National Assembly. The Commissioner for Budget and Economic Planning, Femi Ajayi, stated this while presenting the breakdown and highlights of the 2025 budget in Ado-Ekiti, the state capital. He said that the bills, especially those related to the Value Added Tax (VAT), would be beneficial to the state, providing more revenue for developmental projects.
   
Ajayi disclosed that the N375.7 billion budget for the state in 2025 aligns with the shared prosperity agenda of Governor Biodun Oyebanji to improve the lives and livelihoods of people in the state.
   
He said the 2024 budget witnessed 88 per cent performance, which has been acknowledged by local and international financial institutions and transparency organisations.
   
According to him, the document tagged ‘Budget of Sustainable Impact,’ which was signed into law by the governor on December 30, 2024, would see the completion of ongoing projects, and boost agriculture for food security, among others.
 
 

0 Comments