Why Tinubu’s tax reform bills will destroy the north — Gov Zulum

Governor Babagana Umara Zulum of Borno State has expressed strong opposition to the tax reform bills sponsored by President Bola Tinubu’s administration, warning that their implementation would be detrimental to the northern region and other parts of the country.

The proposed legislation, which seeks to prioritise the location of consumption as the basis for sharing Value Added Tax (VAT), has faced widespread resistance, particularly from northern stakeholders, including governors, traditional rulers, and the Northern Elders Forum.

Despite this opposition, Tribune Online reports that the Senate passed the bills for second reading on Thursday amid a rowdy plenary session.

Speaking in an interview with BBC Hausa service, Governor Zulum criticised the speed with which the bills have progressed, contrasting it with the years-long deliberation that similar legislation, such as the Petroleum Industry Bill, endured before passage.

He described the bills as a potential disaster for the north and other regions, including parts of the South West.

He said, “We condemn these bills transmitted to the National Assembly. They will drag the north backward, and not only the north, South East, South West, and some states in the South West such as Oyo, Osun, Ekiti, Ondo, will have problem with these bills.

He added, “It is not opposition. This, based on our understanding, is something that will destroy the north in its entirety. Therefore, we call on President Bola Ahmed Tinubu and others to review this decision. He secured 60% of his votes in the north. He should not listen to those telling him that northerners are not supporting him.”

The governor emphasised the potential consequences of the bills, warning that states in the north might be unable to pay workers’ salaries if the reforms are implemented.

“How we see it is, if these bills scale through, we will not be able to even pay salaries. And if we paid, it won’t be sustainable the following year,” he noted.

When asked whether the reforms could worsen hunger, poverty, and insecurity in the region, Zulum affirmed, saying “Including security. But they’re saying otherwise. We are against it, Lagos is against it; that it will drag it backwards. If this is the situation, then why won’t they rescind it? Our National Assembly members and even some from the Southern region are not in support of these bills.”

Governor Zulum clarified that his opposition to the bills should not be misconstrued as an attack on President Tinubu’s government.

He stated, “This is our stand and doesn’t mean that we are against the government. We supported and voted for him (President Tinubu). But these bills will not mean good for us.”