Borno State Governor, Professor Babagana Zulum, has provided insight into why the Northern Governors Forum advised President Bola Tinubu to reconsider the controversial tax reform bills currently under discussion.
Speaking as a guest on Sunday Politics, a Channels Television programme, Zulum stated that the governors are advocating for more consultation and a deeper understanding of the proposed tax measures.
“On this tax issue, there are a lot of misconceptions. We felt that the VAT provision in the tax law. Based on the calculations that we did, only Lagos and Rivers States will benefit from this scheme. We did our own research and conclude that we would lose,” Zulum said.
The governor explained that the forum is not outrightly opposing the bills but is requesting a pause to allow for broader consultations. “Why are we in a rush? We advised the Federal Government to take a pause, and expunge some of the clauses that are inimical to not only Northern Nigeria.
“What we are saying is that give more time, let us do a deeper consultation to understand the nitty-gritty of this tax regime before passing it into law.”
Zulum further warned that if the bill is passed in its current form, it could disproportionately benefit Lagos State while leaving other states, especially those in the north, at a disadvantage.
Addressing Misconceptions
The governor dismissed claims that the northern governors’ stance signifies opposition to President Tinubu’s administration. He pointed out his own history of supporting the president, particularly during the lead-up to the 2023 general election.
“I am a strong member of APC. If you can count two governors before 2019 and 2023 that were in support of Tinubu, you can mention Governor Zulum. I was the first governor to come out publicly and say that power must go to the South,” he said.
Zulum emphasized that the north played a pivotal role in Tinubu’s electoral victory, stating, “60.2 per cent of his votes came from the north.”
The governor expressed disappointment over attempts to misrepresent the northern governors’ position as antagonistic toward Tinubu, adding that their recommendations were motivated by fairness and the desire for equitable policies.
Context of the Tax Reform
The tax reform bills have sparked significant debate, with key components, including the Value Added Tax provisions, drawing criticism from various quarters. Northern governors argue that the reforms, as proposed, would favour wealthier states such as Lagos and Rivers, further marginalizing less economically buoyant regions.
Zulum’s comments highlight the governors’ concerns about the potential economic disparities that could arise if the reforms are implemented without amendments.
The Northern Governors Forum’s call for more time and consultation underscores the need for a balanced approach to policy-making, particularly when addressing tax systems that impact revenue distribution across Nigeria’s diverse regions.
