The Northern Governors Forum has strongly opposed the proposed Tax Reform Bills introduced by the federal government, citing concerns over their potential negative impact on the northern region.
In a communiqué released on October 28, the forum described the reforms, particularly the proposed derivation-based Value Added Tax (VAT) distribution model, as “detrimental to the interests of the north and other sub-nations.”
The governors expressed dismay over the proposed VAT amendments, arguing that they would unfairly disadvantage the region.
The proposed system would allocate VAT based on the location of a company’s headquarters, its tax office, and where goods and services are consumed.
The governors argued this approach would significantly undermine the economic well-being of the northern states, which have fewer corporate headquarters and tax offices compared to other regions.
As a result, the forum unanimously rejected the amendments and urged northern lawmakers in the National Assembly to resist any legislation that could harm the region.
The Bauchi State Governor, Bala Mohammed, described the bills as “anti-northern” in an interview, accusing the federal government of favoring only a section of the country.
Despite the backlash, President Bola Tinubu has remained resolute in his support for the bills.
During a media chat in December, Tinubu dismissed calls for their withdrawal, emphasizing the importance of the reforms for Nigeria’s broader economic restructuring.
Speaking to Punch, the Chairman of the Northern Governors Forum, Governor Muhammad Yahaya, reaffirmed the governors’ opposition to the reforms.
A spokesperson for the governor, Ismaila Misilli, said, “The governors of the northern region have already spoken about their position, and they remain adamant.”
He emphasised that even before people became familiar with the contents of the bills, Yahaya had raised concerns, expressing his perspectives on the matter.
Misilli added, “That position has not changed.
“The governor will not be confrontational about it, as he serves as chairman to colleagues in both the APC and the PDP.”
Also, Governor Babagana Zulum of Borno State, maintained his opposition to the bills.
Zulum’s Senior Special Assistant on New Media, Abdulrahman Bundi, reiterated on Friday that the governor’s stance remained unchanged.
He said, “The governor has clearly stated his position, and he is not changing his mind. It is not in his character to play double standards.
“We have weighed all the options, considered the pros and cons of the bills, and have arrived at this decision. Therefore, the stance remains. There is no plan for him to back down or alter his position.”
Also, the Senior Special Assistant on Public Affairs to Governor Abdullahi Sule of Nasarawa State, Peter Ahemba, said northern governors were united in their opposition to the bills.
Ahemba, in an interview with Punch, said the North had observed that the tax reform bills would only be favourable to states in the South.
He noted that the plan to stop the bills was not the idea of a single governor or National Assembly member, but “the collective responsibility for all political players from Northern Nigeria.”
He said, “You could see the Senators from the North and House of Representatives members from the North speaking in one voice. It is the North speaking in one voice on the matter.
“Also, the stand of the Northern Governors Forum is very clear on the matter. They are urging the President to step down the tax reform bills and allow for further consultations. They want him to consult widely so that people will actually see reasons with the bills.
“For now, the perception is that the tax reform bills will only favour some states like Lagos and others while the North will be shortchanged, and in that regard, the President needs to convince the North about the bills. The Tax Reform Bills that we are talking about is beyond an individual governor. The entire Northern Governors Forum and members of the National Assembly are speaking on this matter with one voice.”
Also, the Kano State Government described the bills as detrimental to the welfare of Nigerians, particularly the northern region.
The governor’s spokesman, Sanusi Dawakin Tofa, said that the state deputy governor had already made it clear that the state rejected the bills.
Tofa said, “The Deputy Governor, Aminu Abdulsalam, who represented the governor at the occasion, had made the position of the government clear on the tax reform bills.”
Governor Abba Yusuf, who was represented by the Deputy Governor, Abdussalam, declared the government’s position during the 2025 New Year celebration at the Filin Mahaha, Kofar Naisa Open Theatre on Tuesday night.
The governor had said, “This tax reform bill is not the solution to our economic challenges. Kano State stands firmly against any policy that negatively affects the welfare of our people.”
He described the proposed tax hike as “ill-timed, lopsided, and inimical to the unity of the country.
“Nigerians in general and the north, in particular, are groaning under hyperinflation and unprecedented insecurity, therefore the presidency should rather concentrate its time and attention on tackling extreme poverty and hunger, especially in the northern part of the country.”