Battle Over Tax Reform: Northern Governors Refuse To Back Down, Oppose Key Proposals!

The Northern Governors Forum has firmly opposed the federal government’s proposed Tax Reform Bills, citing concerns about their potentially harmful effects on the northern region.....KINDLY READ THE FULL STORY HERE▶

In a communiqué released on October 28, the governors described the reforms—particularly the derivation-based Value Added Tax (VAT) distribution model—as “detrimental to the interests of the north and other sub-national entities.”

The forum expressed strong disapproval of the proposed VAT amendments, which would allocate revenue based on the location of a company’s headquarters, tax office, and the point of goods and services consumption. They argued that this model would disproportionately disadvantage northern states, which have fewer corporate headquarters and tax offices compared to other regions.

As a result, the governors unanimously rejected the amendments and called on northern lawmakers in the National Assembly to oppose any legislation that could harm the region.

Bauchi State Governor Bala Mohammed described the bills as “anti-northern” in an interview, accusing the federal government of favoring only certain parts of the country.

Despite the widespread backlash, President Bola Tinubu remains steadfast in his support for the bills. During a media interaction in December, Tinubu dismissed calls for their withdrawal, highlighting their necessity for Nigeria’s economic restructuring.

Governor Muhammad Yahaya, Chairman of the Northern Governors Forum, reaffirmed the forum’s opposition. His spokesperson, Ismaila Misilli, stated, “The governors of the northern region have maintained their stance and remain resolute.” Misilli added that Governor Yahaya had raised concerns about the bills even before their full contents became widely known.