Amid growing opposition to the proposed Tax Reform Bills in the National Assembly, leading northern groups have outlined key conditions for withdrawing their resistance, citing concerns over the economic impact on the North.
Prominent organizations, including the Northern Elders Forum (NEF), Arewa Youth Consultative Forum (AYCF), and Arewa Consultative Forum (ACF), have called for greater accountability, transparency, expanded consultations, and a commitment to addressing regional inequalities as conditions for their support.
The proposed bills, including the Nigeria Tax Bill 2024, Nigeria Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and Joint Revenue Board Establishment Bill, aim to overhaul Nigeria’s tax system. While the bills have passed the Second Reading in the Senate, they have encountered significant resistance, particularly from the North, due to fears that the reforms may exacerbate existing socio-economic challenges in the region.
Addressing Historical Inequalities
Abdul-Azeez Suleiman, spokesman for the Northern Elders Forum (NEF), emphasized the need for inclusive negotiations to resolve the controversy surrounding the tax reform bills. He argued that sustainable peace could only be achieved through genuine dialogue that addresses the historical inequalities in the region. Suleiman pointed out that Northern Nigeria has long struggled with poverty, unemployment, limited access to healthcare, and poor infrastructure, and that the proposed reforms could disproportionately burden the region’s already strained economic conditions. He stressed that any reform should come with concrete measures to address these existing challenges, as opposed to exacerbating them.
Suleiman’s call for a “ceasefire” in the opposition to the reforms underscored the complexity of the issue. He noted that achieving peace required not only a suspension of hostilities but also a deep commitment to resolving the underlying grievances of the North. He called for inclusivity, transparency, and accountability in the tax reform process, urging that the revenue generated from the reforms be used to improve services like healthcare, education, and infrastructure in the North. Suleiman also proposed the establishment of independent monitoring bodies to ensure the responsible use of funds.
Concerns Over Inequitable Resource Distribution
Yerima Shettima, President of the AYCF, lamented the lack of consultation with the North during the formulation of the tax bills. He called for a more participatory approach that would involve all segments of Northern society, including farmers, traders, and professionals, in the dialogue process. Shettima expressed concern about the inequitable distribution of resources and infrastructure, arguing that the North, despite its significant contributions to the national economy, receives fewer benefits in terms of public services and developmental projects. He warned that introducing new taxes without addressing this imbalance could further burden the population, which already faces significant poverty and limited access to essential services.
One of the key concerns of Shettima and other northern groups is the potential impact of the tax reforms on the informal sector, which plays a dominant role in the northern economy. Many in the North are employed in agriculture, small-scale businesses, and artisanal trades, which often operate outside the formal tax system. Shettima argued that increasing tax burdens on the informal sector could cripple small businesses, lead to job losses, and further deepen economic hardship. He also highlighted the lack of awareness and resources among youth in the informal sector to comply with new tax regulations, which could lead to fines and penalties, exacerbating their financial struggles.
Mistrust and Corruption Concerns
Mistrust of government institutions, particularly concerns about corruption and the mismanagement of funds, also played a significant role in the opposition to the tax reforms. Shettima and other leaders in the North expressed skepticism about whether the revenue generated from the reforms would be effectively used for the benefit of all Nigerians or whether it would disproportionately benefit other regions. The historical lack of visible development projects and infrastructure in the North, despite the region’s tax contributions, has fueled this skepticism. Shettima argued that the North’s opposition to the reforms stems from a belief that the increased taxation will not translate into tangible improvements for the region.
The lack of adequate engagement and consultation with northern stakeholders, particularly youth and civil society organizations, during the formulation of the tax reform bills was another point of frustration. Shettima stressed the need for a more inclusive dialogue that takes into account the specific socio-economic concerns of the North before moving forward with the implementation of the reforms.
Call for Dialogue and Negotiation
The National Publicity Secretary of the ACF, Prof. Tukur Muhammad Baba, also weighed in on the issue, noting that the ACF had not yet taken a public position on the tax reform bills. However, he acknowledged that the federal government had indicated a willingness to engage in dialogue on contentious aspects of the proposed laws. Baba urged all parties involved to negotiate in good faith, with honesty and sincerity, for the good of the nation. He pointed to the upcoming appearance of the Attorney-General of the Federation before the Senate as a potential opportunity for dialogue.
Conclusion
The opposition from Northern groups highlights the deep-seated concerns over the potential economic and social impacts of the proposed tax reforms. For these groups to withdraw their resistance, they are calling for a comprehensive, transparent, and inclusive process that addresses the historical inequalities in the North, ensures accountability, and provides concrete plans for improving public services and infrastructure in the region. While the government has signaled its willingness to engage in dialogue, the outcome of these discussions will likely determine the future of the tax reforms and their acceptance across Nigeria.
