North, South Clash As Tinubu’s Controversial Tax Bills Polarise Nigeria

Amidst the serious controversies stoke by the the Tax Reform Bills sent by President Bola Ahmed Tinubu to the National assembly recently prominent groups in the southern part of the country has queued behind the president.

The southern groups supporting President include Igbo social cultural orgainsation, Ohanaeze Ndigbo, Afenifere, the Yoruba Youth Socio-Cultural Association, YYSA, amongst others which said on Sunday that the country has a lot to benefit from the bill.

Their positions negate those of their northern counterpart which have kicked against the proposed law because they believe the region will be shortchanged in the new arrangement, saying it’s skewed in favour of a particular section of the country.

For distance, the Northern Governors’ Forum, Arewa Consultative Forum, ACF, including prominent religious bodies and  individuals, have kicked against the bill.

While speaking on the bill on Sunday on Channels Television, Governor Babagana Zulum of Borno state called on President Tinubu to withdraw the bill to allow for wider consultations.

A prominent northern senator Ali Ndume, representing Borno South in the Senate had last week, during plenary urged his colleagues to throw out the bill citing the controversies that have trailed it.

Also, the 2023 Peoples Democratic Party, PDP, presidential candidate Atiku Abubakar said yesterday that it will be better to address the suspicions that have been raised by some Nigerians over the bill.

However, Ohanaeze while supporting President Tinubu on the bill said the south east stands to gain more from the new tax regime if eventually passed by the NASS, saying it will promote entrepreneurship.

According to  a statement issued yesterday by its Secretary-General, Okechukwu Isiguzoro, the Igbo group called on the lawmakers from the region to vote in support of the bill in the NASS, saying it will benefit “the industrious Igbos who plays a pivotal role in driving the Nigerian economy,” adding that it arrived at this conclusion after consulting widely on the issue.

The statement read in part, “In an emphatic affirmation of progress and economic empowerment, Ohanaeze Ndigbo hereby announces its steadfast endorsement of President Tinubu’s proposed Tax Reforms Bills. The Igbo people, renowned for our entrepreneurial spirit and unwavering commitment to economic self-determination, stand to gain immensely from these reforms.

“The proposed measures are expected to safeguard the private sector, particularly benefiting the industrious Igbos who plays a pivotal role in driving the Nigerian economy through vibrant SME activities.

“In light of these compelling advantages, Ohanaeze Ndigbo ardently calls upon all Southern Federal lawmakers—both in the Senate and the House of Representatives—to unify their efforts in support of President Tinubu’s transformative restructuring program within Nigeria’s economic and fiscal sectors.”

On his part, Afenifere’s National Publicity Secretary, Jare Ajayi said the organization is upbeat that all the states in the country will derive huge benefits if the tax bills become law, stressing that the controversies that have trailed the bills is needles, adding that the bill is part of the restructuring that the most Nigerians have been craving for.

Reacting to the concerns raised over the derivation method, Ajayi said “since people consume items and patronize services in every state, there is no reason any state will not benefit from the proceeds of VAT collected in their domains”.

Adding “From experience, where the derivation formula has been applied such as the Niger Delta etc., benefiting states have been the gainers for it.

“Since every state has a population that can engage in activities capable of enhancing VAT, it means that every state has the opportunity of deriving maximum benefits from the new arrangement being propose.”

Expressing its support for the bill YYSA President Olalekan Hammed, urged those against the bill to see the positives rather than the negative, noting that the country will benefit tremendously from it, adding that more resources will be realised as revenue if the new regime is allowed to prevail.

He said the country cannot afford to remain in the same trajectory for years urging the north to prepare for the imminent change because “We cannot continue doing things the same way and expect development.”

He explained that the bills will simplify the tax landscape, reduce the burden on small businesses, and streamline tax collection.

“Moreover, the aspect of the bills that seem unfriendly to Northern people is the proposed shift in VAT revenue distribution, allocating revenues based on states where goods and services are consumed rather than pooling them centrally for redistribution. However, there is nothing panicky about this because only change is constant. We cannot continue doing things the same way and expect development,” he said.

The tax bills described by analysts as very controversial passed the first and second readings in the Senate last week, with strong indications that the House of Representatives will follow suit with the Upper Chamber.

Meanwhile, analysts also insist that fireworks are  expected at the NASS this week as the north moves to block it from passage through their lawmakers. To underscore this position, the Kano state caucus in the NASS yesterday directed it members in NASS to reject the bills when they come up for debate.