Nineteen Northern Nigerian governors have rejected President Bola Ahmed Tinubu’s proposed tax reform bill, citing concerns that it will disadvantage their regions.
The bill, which was sent to the National Assembly, includes reforms such as changing the name of the Federal Inland Revenue Service (FIRS) to the Nigeria Revenue Service (NRS) and shifting to a derivation-based model for Value Added Tax (VAT) distribution.
The Northern Governors’ Forum, led by Chairman Muhammadu Inuwa, Governor of Gombe State, expressed their opposition to the bill in a communiqué.
They argued that the proposed VAT model would harm their regions, as companies currently remit VAT based on their headquarters’ locations, not where goods and services are consumed. This, they believe, would further marginalize less industrialized areas.
The governors stated, “The Forum noted with dismay the content of the recent Tax Reform Bill… The contents go against the interests of the north and other sub-nationals, especially the proposed amendment to the distribution of VAT to a derivation-based model.”
They emphasized that their rejection is not driven by opposition to national growth, but rather a desire for fairness and equity in policy implementation.
The Forum called on the National Assembly to reject the bill, urging members to oppose any policy that could harm northern interests or limit equitable revenue distribution. They also appealed to Nigerians to remain calm amid economic hardship, assuring that state and federal authorities are working to address the challenges.
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