Borno Governor Cautions Against Rush to Implement Tax Reform Bill

Babatunji Wusu –

• Governor Babagana Zulum of Borno State has expressed concern over the potential consequences of the tax reform bill for millions of Nigerians.
• Zulum emphasized that while President Bola Tinubu has the power to pass the bill, its implementation could disproportionately impact Northern and other regions outside Lagos and Rivers.
• The Governor called for deeper consultations and suggested removing certain provisions in the bill, especially those concerning VAT distribution based on derivation.

Borno State Governor, Babagana Zulum, has raised concerns about the potential impacts of the tax reform bill, which recently passed its second reading in the Senate. While acknowledging President Bola Tinubu’s executive power to push the bill through, Zulum warned that it could have significant negative effects on millions of Nigerians, particularly those in the Northern region.

Speaking on Channels Television’s Politics Today, Zulum pointed out that the tax reform, especially its VAT provisions, would primarily benefit only Lagos and Rivers states, with other regions, including the North, potentially losing out. He argued that the Northern Governors Forum, Northern Elders Forum, and other stakeholders had expressed their opposition to the bill, urging further consultations to address regional concerns.

Zulum criticized the haste in implementing the bill, particularly highlighting the proposed 60% VAT distribution based on derivation. He suggested that the federal government should pause and engage in more in-depth discussions with stakeholders to reconsider certain clauses that could hinder the development of Northern Nigeria, as well as other regions like the South-East and South-South.