The Northern Elders Forum (NEF) has once again raised the alarm over President Bola Tinubu’s proposed Tax Reform Bills, calling for their immediate suspension. The forum, which has been a vocal critic of the government’s policies, expressed deep concerns that the reforms could exacerbate existing socio-economic problems, particularly in Northern Nigeria.
In a statement released on Saturday, signed by the Chairman of the NEF Board, A.M. Al-Amin Daggash, the group condemned what it described as “draconian” tax measures that they claim will disproportionately affect the Northern region. With Northern Nigeria already grappling with insecurity, widespread poverty, and high unemployment rates, the NEF argues that the tax reforms could worsen these challenges.
“It is terribly shocking,” the statement reads, “that in this day and age, with nearly three decades of democratic governance, Nigeria would be saddled with a government that is systematically denying its citizens the ability to freely express their opinions and engage in democratic dialogue.”
The Proposed Reforms and Their Implications
The reforms, which include four major bills—the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill—are designed to streamline tax collection and increase government revenue. The bills aim to modernize Nigeria’s tax system and ensure greater accountability.
However, the NEF is not convinced that these reforms are in the best interest of the country, particularly the North. The group has criticized the government’s approach, which it claims failed to engage crucial stakeholders in meaningful discussions. This lack of consultation, the NEF says, is a significant oversight in a nation where democratic processes are meant to guide policy-making.
“The sudden introduction of these reforms will only add to the suffering of the poor and vulnerable in Northern Nigeria,” Daggash said, noting the region’s fragile economy and its dependence on agriculture, which could be severely affected by the tax changes.
Calls for Suspension and Stakeholder Engagement
One of the NEF’s primary demands is for the government to immediately suspend the reforms and reconsider their implementation. The group emphasized the importance of holding consultations with all relevant stakeholders, particularly those from the Northern region, to ensure that the tax policies are equitable and do not undermine regional economic stability.
In the statement, the NEF also raised concerns about the potential rise in the Value Added Tax (VAT), especially on agricultural goods and livestock. The region, heavily reliant on agriculture, could face adverse consequences if such goods are subjected to increased taxes.
“VAT should not be imposed on agricultural products and livestock,” the forum argues, “as this would severely harm the livelihoods of millions in the North, where farming is a key economic activity.”
Additionally, the NEF called for the protection of vital national institutions such as TETFund, NITDA, and NASENI, warning that any move to undermine their status could have long-term negative effects on Nigeria’s development.
“We strongly recommend that the government maintain the status quo to strengthen and protect these institutions,” the statement reads. “Their role in national development cannot be overstated.”
Critique of Government’s Approach
The NEF’s critique extends beyond the specifics of VAT and agricultural taxation to broader concerns about the government’s handling of policy-making. According to the forum, the lack of transparency in how these reforms have been introduced is a major flaw. The forum believes that the government should have prioritized an inclusive dialogue to ensure that the tax reform process is as transparent as possible.
“There are glaring failures in the government’s approach to these reforms,” said Daggash. “By rushing these bills through without adequate consultation and a transparent implementation plan, the government risks deepening divisions and alienating key stakeholders.”
The NEF also suggested that the government reconsider controversial provisions in the proposed reforms, such as the ambiguous use of terms like “ecclesiastical” in the taxation framework. The forum proposes that these terms be replaced with more inclusive language, such as “religious,” to avoid potential conflicts and discrimination.
A Call for National Dialogue
The NEF has long advocated for a more inclusive approach to governance, one that takes into account the diverse socio-economic realities across Nigeria’s regions. The forum believes that the only way to achieve effective tax reform is through comprehensive dialogue with stakeholders from all sectors of society.
“The government’s interests will best be served by actively engaging in comprehensive dialogue with all stakeholders,” the statement concludes. “This will help ensure that the tax reform is fair and equitable, benefiting all Nigerians rather than just a select few.”
This latest opposition to the government’s tax reform proposals adds to a growing body of criticism from various groups, particularly those in the Northern part of the country. The NEF’s call for immediate suspension of the bills has intensified debates around the future of Nigeria’s tax system and the government’s approach to economic reforms.
What’s Next?
As the government faces mounting pressure to address these concerns, it remains to be seen whether President Tinubu will heed the NEF’s call for suspension or push ahead with the reforms. The growing discontent among Northern leaders could have significant political implications, especially with elections and key policy decisions on the horizon.
For now, the NEF continues to advocate for a more inclusive and transparent process that puts the interests of all Nigerians at the forefront. Only time will tell if the government will revise its approach or continue to press forward with its ambitious tax reform agenda.
