Tax Reform Bills threat to regional stability – Northern coalition

The Coalition of Northern Groups (CNG), together with 134 civil society organisations (CSOs) and non-governmental organisations (NGOs), has called for the immediate withdrawal of the Federal Government’s proposed Tax Reform Bills.

The groups expressed concerns, warning that the reforms could have severe consequences for the socioeconomic stability of northern Nigeria and the nation as a whole.

In a statement issued after a town hall meeting titled “Tax Reform Bills: A Catalyst for Economic Growth or a Burden on the People?” participants voiced concerns about the reforms’ potential to worsen the region’s already precarious economic situation.

Comrade Muhammed Sanusi Ali, speaking on behalf of the CSOs and NGOs, signed a communique outlining their grievances.

He argued that the proposed changes would deepen poverty, increase financial strain on individuals and businesses, and marginalize northern Nigeria further.

One of the key issues raised was the amendment to the Value Added Tax (VAT) allocation formula, which distributes revenue based on company headquarters instead of consumption points.

Participants criticized this approach as inequitable, claiming it disproportionately advantages certain regions at the expense of the North.

There was also strong opposition to proposals to defund critical agencies like the Tertiary Education Trust Fund (TETFUND), the National Information Technology Development Agency (NITDA), and the National Agency for Science and Engineering Infrastructure (NASENI).

These institutions were described as essential to advancing education, technology, and innovation in the North.

Participants further highlighted ambiguities in the proposed bills, pointing to terms such as “derivation,” “family wealth,” and “ecclesiastic” as problematic.

They argued that such vague language could lead to inconsistent interpretation and hinder policy implementation.

The communique concluded with a call for the immediate withdrawal of the bills and urged the government to engage in broader consultations with stakeholders to develop reforms that reflect the realities and needs of all Nigerians.