Kehinde Fajobi
Former Senate Leader, Senator Mohammed Ali Ndume, has once again called for the suspension of the Tax Reform Bills currently before the Senate.
He highlighted the need for broader consultations to address concerns from various stakeholders.
Speaking in Abuja on Sunday, Ndume dismissed claims that northern Nigeria is parasitic, stressing the need for all regions to work together for the country’s collective progress.
“I maintain that the Tax Reform Bills should be withdrawn to allow for more consultation and involvement of key stakeholders, including state and local governments, as well as the private sector,” Ndume stated.
He refuted the idea that the bills were specifically aimed at northern interests, pointing out that, in their current form, the reforms would negatively impact low- and middle-income Nigerians across the country.
Ndume also expressed concern about the timing of the proposed reforms, particularly given the current economic challenges.
He warned that pushing through the reforms without addressing underlying issues would only worsen the hardships faced by Nigerians.
“The belief that the current tax reforms are solely targeting northern interests is wrong. The truth is that these reforms, as they stand, will harm low- and middle-income citizens across the country,” Ndume explained.
The senator called for improved fiscal management, urging the Federal Inland Revenue Service (FIRS) to expand the tax base and enhance transparency in revenue collection.
“The FIRS should focus on broadening the tax base and improving efficiency in tax collection. There must also be greater transparency and accountability,” Ndume added.
He further suggested that the Central Bank of Nigeria (CBN) should closely monitor commercial banks to ensure they meet their tax obligations, especially given their high-profit margins.
The Tax Reform Bills, part of President Bola Tinubu’s larger tax reform agenda, propose the creation of the Joint Revenue Board, the Tax Appeal Tribunal, and the Tax Ombudsman’s office.
However, Ndume raised concerns over issues such as the timing, the allocation of VAT, and the lack of consensus.
“Reforms are necessary, but they must be carefully timed, prioritised, and implemented with the support of the Nigerian people. This is a democracy, and the people must be involved,” Ndume asserted.
Ndume also stressed that reforms should not be limited to tax issues. He pointed out that personnel and overhead costs make up a significant portion of the annual budget, leaving insufficient funds for infrastructure projects.
“Personnel and overhead costs for 2024 represent around 50 to 60 percent of the budget. Meanwhile, capital projects are poorly funded, and recurrent spending is fully utilised,” he noted.
The senator argued that reform efforts should be comprehensive, involving both the Executive and Legislative branches of government.
Rejecting the idea of the North being a burden, Ndume stated: “The North has never been and will never be a parasite or dependent on any region or the country. We are valuable assets to Nigeria.”
He concluded by calling for accountable governance and collaborative efforts to implement reforms that benefit all Nigerians.