A proposed tax reform bill by President Bola Tinubu has been halted amid fierce opposition from northern political leaders.
The House of Representatives has indefinitely suspended debate on the bill, yielding to pressure from 19 northern state governors and 73 northern lawmakers who argue the proposed reforms would disproportionately harm the region’s already fragile economy.
Former Vice President Atiku Abubakar emerged as a vocal critic, calling for a fiscal system that ensures “justice, fairness, and equity.”
“I have followed the intense public discourse on the Tax Reform Bills with keen interest. Nigerians are united in their call for a fiscal system that promotes justice, fairness, and equity. They have made it clear that the fiscal system we seek must not exacerbate the uneven development of the federating units by favouring a few states while unfairly penalising others.
“As a concerned stakeholder, I firmly believe that transparency and objectivity are essential for promoting accountability, good governance, and public trust in policy-making. The public hearing process must facilitate open and inclusive participation by all stakeholders,” Atitku Abubakar said in a statement released on Sunday.
He further warned against a policy that could exacerbate uneven development across Nigeria’s federating units.
Borno State Governor Babagana Zulum was particularly scathing, criticising the bill’s rapid legislative process. “Why the rush?” Zulum questioned in a BBC Hausa interview, drawing parallels to the Petroleum Industry Bill, which took nearly two decades to pass.
“The Petroleum Industry Bill took almost 20 years before it was finally passed. But this tax reform bill is being transmitted and receiving legislative attention within a week. It should be treated carefully and with caution so that even after our exit, our children will reap its benefits,” he stated.
The proposed reforms sparked a broader debate about regional economic disparities. Zulum claimed that if passed, only Lagos State would substantially benefit from the four tax bills under review.
The planned debate on the Tax Reform Bills, earlier fixed for Tuesday, was officially called off through a memo signed by the Clerk of the House of Representatives, Dr. Yahaya Danzaria.
The opposition is notably robust, including 48 Representatives from the Northeast, 24 federal lawmakers from Kano, and former Sokoto State Governor Senator Aminu Tambuwal, who represents Sokoto South Senatorial District.
At the heart of the opposition is a concern about regional economic disparities. The northern leaders argue that the proposed tax reforms would disproportionately burden their already economically challenged region, potentially widening the economic divide between Nigeria’s wealthier southern states and the more fragile northern states.
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