Kano State House of Assembly has strongly opposed the tax reform bills currently being debated in the National Assembly.
This rejection came after a heated session during Monday’s plenary, where Speaker Rt. Hon. Ismail Falgore led the discussions.
The Majority Leader of the House, Hon. Lawan Husseini, representing Dala State constituency, presented a motion on “urgent public importance,” urging northern lawmakers and the Conference of Speakers to block the bills.
Hon. Husseini argued that if passed, the bills would harm the people of northern Nigeria, claiming they would only benefit southern states.
“We view it as a calculated plan to sabotage the economy and increase hardship,” Husseini declared during the session.
The motion centers on the controversial proposal for a new allocation of the Value Added Tax (VAT), which the lawmakers argue would unfairly benefit Lagos State, leaving northern states with a minimal share.
“Lagos would receive 80 percent of the VAT collected in Nigeria, while states in the North will barely get anything,” Husseini said.
He warned that such a move would lead to financial instability in the north, making it difficult for several states to pay salaries, further worsening poverty levels in the region.
Support for the motion grew during the plenary. Hon. Salisu Mohammed, representing Doguwa constituency, emphasized that the Senate should shift its focus to more pressing issues, such as insecurity and unemployment, instead of rushing through the tax reforms.
“We should not allow the tax reform bills to be passed without considering their impact on the lives of ordinary Nigerians,” Mohammed said.
Another key speaker, Hon. Murtala Kadage, from Garko constituency, urged unity among northern representatives to ensure the bills do not pass.
“We must stand together for the sake of the people we represent,” Kadage said, adding that the northern states would bear the brunt of these reforms.
The Kano House of Assembly has called on their colleagues in the Senate and House of Representatives, particularly those from the northern region, to prevent the bills from becoming law.
This decision comes as part of ongoing efforts by northern lawmakers to safeguard the region’s financial future. They are concerned that the new tax structure could exacerbate the economic disparity between the North and the South.
The Northern Governors Forum has also expressed similar concerns over the tax reforms, warning that the imbalance in the VAT distribution could lead to economic chaos across northern states.
In a statement, the governors argued that such an unequal distribution would lead to the closure of businesses in the North, which could worsen unemployment and increase the poverty rate.
A member of the House of Representatives from the North, who preferred to remain anonymous, echoed these concerns. “If the tax reforms go ahead, many states in the North will struggle to meet their obligations to workers, and social unrest could rise,” the representative said.
Critics of the tax reforms argue that the proposed changes are yet another blow to the North, which already struggles with issues like poverty, lack of infrastructure, and low economic development.
The controversy surrounding the reform comes at a time when the country is already grappling with several economic challenges, including high inflation and a growing debt burden.
Supporters of the bill, however, argue that the reforms are necessary for boosting national revenue and ensuring a fairer distribution of resources across Nigeria.
Despite the ongoing debate, the National Assembly continues to push forward with the bills.
However, with strong opposition from the northern lawmakers, it remains unclear whether the reforms will pass in their current form.
The Kano Assembly’s stance represents a significant moment in the ongoing debate about tax reforms in Nigeria. If the bills are passed, they could change the way Nigeria collects and allocates its tax revenue, a decision that could reshape the country’s economic landscape for years to come.
