In response to the proposed tax reform bill, the Nigerian presidency has called on Bauchi State Governor, Bala Mohammed, to retract his threat of legal action against President Bola Tinubu’s administration. Governor Mohammed contends that the bill’s provisions, particularly the reallocation of Value Added Tax (VAT) revenues, disproportionately favor economically prosperous southern states, potentially exacerbating regional disparities.
The tax reform bill, part of a series of legislative measures introduced by President Tinubu, aims to overhaul Nigeria’s tax system to enhance government revenue. A key aspect of the bill proposes adjusting the distribution formula of VAT revenues, granting a larger share to states that generate more VAT while reducing allocations based on population. This shift has sparked concerns among northern governors, who argue that it could deepen economic inequalities between Nigeria’s north and south.
Governor Mohammed has been vocal in his opposition, suggesting that the bill could jeopardize the well-being of northern populations. In response, the presidency has urged him to engage in constructive dialogue rather than resorting to threats of litigation. Senate President Godswill Akpabio, an ally of President Tinubu, has indicated that the reforms will proceed, emphasizing the need for understanding and collaboration among all stakeholders.
The debate over the tax reform bill has reignited discussions about Nigeria’s longstanding regional disparities and the complexities of federal revenue allocation. As deliberations continue, the presidency encourages all parties to participate in open discussions to address concerns and work towards equitable solutions that benefit the entire nation.
