Senator Mohammed Ali Ndume, a former Senate Leader, has reiterated his demand for the immediate withdrawal of the controversial Tax Reform Bills currently before the National Assembly, citing the need for broader consultations to address pressing concerns from critical stakeholders.
In a press briefing held in Abuja on Sunday, Ndume tackled criticisms aimed at northern Nigeria, firmly rejecting the notion that the region is parasitic. Instead, he described the interdependence among Nigeria’s regions as vital for the nation’s collective survival.
“I’m still insisting that the Tax Reform Bills be withdrawn for more consultations and buy-in from critical stakeholders, including state and local governments, as well as the private sector,” he said.
Reforms Will Hurt Struggling Nigerians
Ndume criticised the proposed tax reforms, arguing they are poorly timed and could disproportionately harm low- and middle-income Nigerians. He called out claims suggesting that the reforms are designed to target northern interests as “naïve.”
“Those who think the current tax reforms are only against northern interests are mistaken. The reality is that the reforms, as they stand, will negatively impact low- and middle-income Nigerians nationwide,” Ndume emphasised.
He further noted that with the prevailing economic hardship across the country, implementing these reforms without addressing underlying issues would exacerbate the suffering of many Nigerians.
Accountability and Efficiency Needed in Tax Collection
The senator urged the Federal Inland Revenue Service (FIRS) to expand the tax net and ensure efficient revenue collection while improving transparency and accountability.
“The FIRS should concentrate on expanding the tax net and collecting more revenue efficiently. Transparency and accountability must also be increased,” Ndume said.
Additionally, he called on the Central Bank of Nigeria (CBN) to scrutinise commercial banks, ensuring they contribute their fair share of taxes, especially given their consistent record of high profits.
These reforms are intended to streamline tax administration and boost Nigeria’s revenue base. However, critics like Ndume argue that the timing is flawed and the reforms lack widespread consensus.
“Yes, reforms are necessary, but they must be well-timed, prioritised, and carried out with the buy-in of Nigerians. This is a democracy—a government of the people, for the people, and by the people,” Ndume said.
Ndume also pointed out the high cost of governance as a more pressing issue than taxation. According to him, a significant portion of Nigeria’s annual budget—estimated at 50 to 60 percent—is consumed by personnel and overhead costs, leaving little room for capital projects.
“Our personnel and overhead expenditure for 2024 account for about 50 to 60 percent of the budget. Meanwhile, capital projects suffer from under-implementation, while recurrent expenditure is fully exhausted,” he lamented.
The senator urged both the Executive and Legislative branches to work together for comprehensive reforms that prioritise governance efficiency.
‘The North Is Not Parasitic’
Addressing what he termed as unfounded criticisms of northern Nigeria, Ndume firmly rejected the claim that the region is a liability to the nation.
“The North was, is, and will never be a parasite or dependent on any region or even the country. We are assets, not liabilities, to Nigeria,” Ndume declared.
The senator highlighted the North’s contributions to agriculture, solid minerals, and human resources, stating that the region plays a crucial role in Nigeria’s development.
Concerns Over VAT Distribution and Revenue Allocation
Ndume also raised concerns about derivation principles, Value Added Tax (VAT) distribution, and revenue-sharing formulas. He argued that these issues need to be addressed to ensure equity and fairness across regions.
“Reforms should not just focus on taxation but must consider equity in VAT distribution and derivation principles. This will foster trust and national unity,” he explained.
Senator Ndume concluded his remarks by calling for responsible governance and collaborative efforts to achieve meaningful reforms that benefit all Nigerians, regardless of region or income level.
“This is not about the North, South, East, or West; it’s about Nigeria. We must work together to address the challenges facing our country and ensure a better future for all Nigerians,” he said.
The debate over the Tax Reform Bills is far from over, as stakeholders and legislators continue to clash over the proposed changes. For now, Senator Ndume’s stance adds to the growing list of voices calling for a more inclusive and measured approach to tax reforms.
