At a high-stakes meeting on Monday, northern political leaders and traditional rulers voiced strong opposition to the Value Added Tax (VAT) sharing proposal in President Bola Tinubu’s Tax Reform Bill, now under consideration by the National Assembly.
This proposal, which aims to increase VAT on luxury items from 7.5% to 15% and shift VAT distribution to a derivation-based model, was deemed unfavourable for the North.
The Northern States Governors’ Forum (NSGF), chaired by Gombe State Governor Inuwa Yahaya, alongside traditional rulers led by Sultan of Sokoto Sa’ad Abubakar III, emphasised the proposal’s potential harm to the region.
In a communique read by Yahaya at the meeting, the northern stakeholders argued that VAT is often remitted from company headquarters, not from where goods and services are consumed, putting Northern states at a disadvantage.
The leaders called on legislators to oppose the bill in its current form, demanding that national policies promote equitable distribution to avoid regional marginalisation.
Aside from the VAT issue, the forum also highlighted ongoing issues and strategies to strengthen security, address economic challenges, and improve infrastructure in the North.
These are key resolutions from the meeting below:
Rejection of VAT sharing proposal
The NSGF rejected the Tax Reform Bill’s VAT-sharing model, which they argued would negatively impact the North.
“The contents of the Bill are against the interests of the North and other sub-nationals especially the proposed amendment to the distribution of VAT to a derivation-based model.
“This is because companies remit VAT using the location of their headquarters and tax office and not where the services and goods are consumed.
“In view of the foregoing, the Forum unanimously rejects the proposed Tax Amendments and calls on members of the National Assembly to oppose any bill that can jeopardise the well-being of our people,” the communique reads in part.
Support for livestock reform
The Leaders endorsed the newly created Ministry of Livestock Development and agreed to work with the Presidential Livestock Reforms Committee to ensure successful implementation.
Insecurity and security collaboration
The forum acknowledged recent security gains against bandits and terrorists. It commended General C. G Musa, the chief of defence staff, for his efforts in improving security and called for sustained efforts to eliminate remaining threats in their region.
Read also: Foreigners account for 17.56% as equities deal hits N3.968trn in 9 months
“Particularly, we commend the untiring commitment of the Chief of Defence Staff General C. G Musa whose professionalism and innovative approach have made a difference in the security architecture of the Country at large.
“Nevertheless, more needs to be done to address pockets of challenges that abound in the Northern Region,” the communique reads.
Economic and infrastructure challenges
The stakeholders urged the Federal Government to enhance power transmission lines and diversify energy sources to address recurring blackouts in Northern states.
“This matter not only underscores the vulnerability of critical infrastructure but also the need to build additional transmission lines and diversify our energy supply so as to better connect our region and improve our energy resilience,” they said.
Read also: Power outages ground businesses in Northern Nigeria
They noted the agricultural potential of the North, pushing for investment in infrastructure like roads and irrigation systems to boost productivity and support re-industrialisation through agro-allied industries.
Response to flooding and climate impact
The NSGF pledged support to communities affected by recent floods and committed to partnering with the Federal Government to build canals and waterways for irrigation.
“We agreed to continue to work with the Federal Government and relevant agencies to provide the necessary support and relief to those affected,” the governors said.
Youth engagement and education
Recognising recent ‘End Bad Governance’ protests, the leaders committed to addressing root causes of unrest by investing in education, skills development, and job creation to divert youth from crime.
“With the recent ‘End Bad Governance’ protests that took place in August, the Forum resolved to scale up efforts to tackle the root causes of youth restiveness by investing in education, skills development, job creation and pathways for the youth to channel their energy into productive ventures, thereby reducing their vulnerability to crime and social vices,” the northern leaders said.
Sympathies for victims of disasters and violence
The forum extended condolences to victims of recent natural disasters and violent incidents, including flooding in Maiduguri and a tanker explosion in Jigawa.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
