The Northern Governors Forum has strongly opposed the proposed Tax Reform Billsintroduced by the federal government, citing concerns over their potential negative impact on the northern region.
In a communiqué released on October 28, the forum described the reforms, particularly the proposed derivation-based Value Added Tax (VAT) distribution model, as “detrimental to the interests of the north and other sub-nations.”
The governors expressed dismay over the proposed VAT amendments, arguing that they would unfairly disadvantage the region.
The proposed system would allocate VAT based on the location of a company’s headquarters, its tax office, and where goods and services are consumed.
The governors argued this approach would significantly undermine the economic well-being of the northern states, which have fewer corporate headquarters and tax offices compared to other regions.
As a result, the forum unanimously rejected the amendments and urged northern lawmakers in the National Assembly to resist any legislation that could harm the region.
The Bauchi State Governor, Bala Mohammed, described the bills as “anti-northern” in an interview, accusing the federal government of favoring only a section of the country
Despite the backlash, President Bola Tinubu has remained resolute in his support for the bills.
During a media chat in December, Tinubu dismissed calls for their withdrawal, emphasizing the importance of the reforms for Nigeria’s broader economic restructuring.
Speaking to Punch, the Chairman of the Northern Governors Forum, Governor Muhammad Yahaya, reaffirmed the governors’ opposition to the reforms.
A spokesperson for the governor, Ismaila Misilli, said, “The governors of the northern region have already spoken about their position, and they remain adamant.”
He emphasised that even before people became familiar with the contents of the bills, Yahaya had raised concerns, expressing his perspectives on the matter.
Misilli added, “That position has not changed.
