Tax Reforms: It Is Like The President Wants To Suffocate Us, We Won’t Accept – Governor Bala Mohammed

The Bauchi State Governor, Bala Mohammed, has voiced serious concerns regarding President Bola Ahmed Tinubu’s proposed tax reform bills, urging a thorough review to foster national unity rather than deepen divisions.

In a heartfelt appeal, Governor Mohammed called on President Tinubu to pause the progress of the contentious bills and initiate broad consultations to ensure equitable and balanced legislation before moving forward.

The reforms in question, particularly the shift towards a derivative-based model for distributing value-added tax (VAT), have triggered strong objections from northern governors and traditional leaders.

These stakeholders argue that such a model would disproportionately impact less industrialized regions, particularly in the northern part of the country, where economic structures are less diversified.

He emphasized that policies with far-reaching implications should be crafted with fairness, considering the socioeconomic realities of all regions.

Despite mounting pressure and objections from various quarters, President Tinubu has insisted on furthering the bills. The administration’s stance has sparked debates on fiscal policies and regional equity, with critics warning of potential socio-economic repercussions.

Governor Bala Mohammed stated during an interview with BBC Hausa Service, “Any reform to the tax bill, as it stands, is a recipe for further impoverishment of the north. What we need is a debate on a tax system that will not harm any region.”

He explained that the proposed tax model would further strain northern states, many of which already face significant financial challenges. For instance, he pointed out that Bauchi State struggles to meet its salary obligations due to insufficient funds.

“We receive about N2 billion in monthly federal allocation, but our salary bill stands at N4 billion, with local government salaries alone amounting to N3 billion. We also do not receive any derivatives from oil sales due to the current revenue-sharing formula,” he added.

He explained that while northern states are major consumers of goods and services- especially in industries like telecommunications-the tax revenue generated by these sectors often benefits southern states, where the companies’ headquarters are located.

According to Governor Bala, this uneven distribution exacerbated northern states’ financial difficulties, urging the president to address this disparity and ensure that all regions are fairly represented in the revenue-sharing process.

“We are operating a federal system, and we are one country. No state or region should be disadvantaged in the distribution of revenue,” He said.

He also expressed frustration at what he perceived as the president’s lack of willingness to address the concerns raised by northern leaders.

“If the federal government persists with this reform, we will be forced to mobilise our federal lawmakers, who are numerous, to block the bill,” he warned.

“It is as though the President wants to suffocate us, and we are not going to fold our arms or accept this,” he added.

The Bauchi governor also urged President Tinubu to reconsider his stance, reminding him that Nigeria operates under a democratic system where the voices of the people, through their representatives, should be respected.

He pointed out that even the president’s deputy, Kashim Shettima, and other representatives had already objected to the bill and called for its amendment.

Governor Mohammed called for a national dialogue on tax reform that aims to unite the country rather than divide it, ensuring that all regions are included in the pursuit of economic fairness and growth.