IMG 20241215 WA0057

Tax Reform Bill: Northern Elites Urged to Focus on Value Addition

As debates over the contentious Tax Reform Bill rage on, the Independent Media and Policy Initiative (IMPI) has voiced grave concerns, urging the North to set aside sentimental opposition to the proposed legislation.

Currently under review by the National Assembly, the Tax Reform Bill has ignited a spectrum of reactions across the country.

However, resistance from northern elites remains the loudest, fueling controversies and slowing down discourse on the billโ€™s economic potential especially in revenue generation, enterprise growth, and improving citizensโ€™ purchasing power.

At a press briefing in Abuja over the weekend, Ahmad Sajoh, former Commissioner for Information and Strategy in Adamawa State, criticized the North for what he described as baseless fears.

He argued that northern leaders have failed to capitalize on the regionโ€™s abundant resources, particularly in value addition, which could transform their economic landscape.

Sajoh pointed to the waste of resources like cow blood a prized ingredient for fish feed production globally as an example of unrealized potential in the region.

He lamented that, much like initial resistance to the state police concept, opposition to the Tax Reform Bill stems from misinformation and fearmongering.

Speaking candidly, Sajoh remarked, โ€œAs a northerner and someone with experience in the northern state executive, I can say categorically that the fears of the northern governments are unfounded. It is rooted in the misconception that the North is reluctant to support productive activities. Value addition is the key.โ€

He illustrated his point using the example of cattle: โ€œA single abattoir processing a thousand cows daily could harness every by-productโ€”blood, bones, horns, hooves, and skin for profit. We once had factories in Maiduguri and Kano producing shoes, belts, and bags from processed skins. If northern governments focused on adding value to what we already produce, taxes would no longer be a concern. The North is immensely rich.โ€

Sajoh commended states like Nasarawa and Kaduna for taking steps toward processing valuable resources such as lithium, urging others to follow suit. He dismissed fears about tax centralization, noting that advancements in ICT have made tracking tax contributions by location seamless.

He further argued, โ€œThe hysteria that โ€˜the North will be cheatedโ€™ lacks empirical backing. Ask them to explain how, and they will falter. Itโ€™s the same misplaced anxiety we saw with state policing.โ€

Sajoh emphasized that initiatives like Amotekun and JTF demonstrate the practical value of localized security models, underscoring the importance of clarity and innovation in addressing national challenges.

Echoing Sajohโ€™s sentiments, IMPI Chairman Omoniyi Akinsiju criticized the uproar over the VAT sharing formula proposed in the bill.

He described it as a relic of the era when squabbles over revenue distribution overshadowed more meaningful conversations about economic innovation.

According to IMPI, Nigeriaโ€™s focus should shift to fostering a mutually beneficial fiscal relationship between the government and its citizens, paving the way for inclusive and sustainable development.