According to former Senate Leader Ali Ndume, who represents the Borno South Senatorial District, the northern part of Nigeria is not reliant on other parts of the country. He underlined that for survival, every area of the nation depends on every other area. Ndume urged for improved governance, resource management, and transparency in response to accusations that recent Tax reforms are biased against the North, claiming that they apply to all Nigerians equally. He attacked the timing of the planned tax reforms.
He claimed that if they were put into effect without first consulting important parties like the corporate sector and state and municipal governments, they may make economic difficulties worse. In order to guarantee equitable tax payments, he recommended that the Federal Inland Revenue Service (FIRS) expand the tax base, increase the effectiveness of collection, and closely examine commercial banks, that make large profits. President Bola Tinubu’s tax reform proposals, which include creating a Joint Revenue Board, Tax Ombudsman, and Tax Appeal Tribunal, drew criticism from Ndume. He maintained that in order to solve the nation’s financial problems, more extensive governance reforms must come before any fiscal adjustments.
Northern Nigeria has made substantial contributions to the national economy.
Also, he outlined Nigeria’s financial difficulties, pointing out that staff, debt repayment, and ongoing expenses take up the majority of the budget and leave little space for new projects. Ndume argued that in order to bring about significant change, all branches of government need to implement comprehensive changes. Northern Nigeria has made substantial contributions to the national economy, and Senator Mohammed Ali Ndume has argued that the region is economically sustainable and not parasitic. He emphasises that regardless of personal riches, all Nigerian states and regions are dependent on one another for survival.
Political leaders and analysts have been debating the proposed tax reforms extensively. In agreement with Northern leaders, Senator Ndume is against the reforms, arguing that they could unfairly affect low and middle-income Nigerians in all territories. To enable more extensive engagements with important stakeholders, such as state and local governments and the commercial sector, he supports the Tax Reform Bills’ withdrawal. In addition, the Nigeria Labour Congress (NLC) has voiced its disapproval of organised labor’s exclusion from the Tax Bill’s deliberations.
Suggested tax reforms could have a variety of effects.
To ensure equity and inclusivity in taxation, the NLC calls for a quick stop to the bill’s advancement and calls for more extensive consultations that involve Nigerian workers. The suggested tax reforms could have a variety of effects. The changes supporters contend that by streamlining tax administration, getting rid of inefficiencies, and improving compliance, they may raise government income. This might therefore make it possible to invest more in Infrastructure and public services, which could spur economic growth.
Critics warn that the higher tax burden may worsen economic inequality, especially in states with higher rates of poverty. For example, more populous Northern states may be disadvantaged by the proposed reallocation of Value Added Tax (VAT) money to regions that earn more VAT, which could exacerbate regional inequality. The goal of Senator Ndume’s recommendations for more inclusive tax reform and wider discussions is to guarantee that any modifications to the tax code are fair and take into account the various economic environments found throughout Nigeria.
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The government’s and other stakeholders’ readiness to have a thorough discussion and take into account the distinct needs and contributions of every region will determine whether or not his recommendations can be implemented. The suggested tax reforms could improve Nigeria’s economic structure, but in order to minimise any negative effects on the country’s economy, people, and government, it is imperative that they be carried out in a way that encourages equity and inclusivity and takes into consideration the concerns expressed by different stakeholders.