By Bilyamin Abdulmumin, PhD
Passing bills in Nigeria (and apparently everywhere else) has a tradition of generating controversies. For instance, the Petroleum Industry Act (PIA) endured decades of rejection before finally passing into law. When the Electoral Act 2022 was signed into law, the opposition went agog, crying to high heaven. Similarly, when the Social Media Bill was passed, it was seen as proof of a government obsession with suppressing dissent.
The reform that is now raising the dust is the Tax Reform Bills. Days after sending the bills to the national assembly, the nineteen governors of the northern states convened in Kaduna to oppose them, describing them as anti-North. The Federal Executive Council (FAC) also backed the northern governors. However, like the vigour with which subsidy removal was pursued, the president insisted on proceeding with the reform.
Northern governors fear amending VAT to a derivation-based model will diminish their states’ revenue contributions. Governor Yahya, the NGF chairperson, notes that companies remit VAT based on their headquarters, not where goods and services are consumed. Consequently, while MTN services consumed in Kano generate VAT for Lagos, Kano’s allocation decreases despite the consumption.
This reform is a dream come true for the state where the plants and industries are sited; unfortunately, for the state’s bottom rock in terms of industries, it is a crying face to them.
While seeking redress to the proposed bill, it is also better to take charge; no more time is needed for the North to dust off all the moribund infrastructure, pass and implement industrial policies, continue with the uncompleted, and maintain the few industries in the region than now.
There are plenty of them in Kano; notwithstanding Karota revenue, Abba Kabir Yusuf needs to rise to industrious revenues. Dangote’s Tomato processing industry is said not to be meeting expectations and optimism.
In Zamfara, a once peaceful and serene area, Dauda Lawal needs to recall all the companies aground and those existing only in paper, e.g., fertiliser plants by his predecessor Mutawalle. Apart from raising revenue, industrialisation benefits in Zamfara are numerous, combating even the insecurities that bedevil the state (through job opportunities in the long run).
In Kaduna, Uba Sani needs to continue with the Malam El-rufai’s exploit, maintaining and upgrading Olam Nigeria and a host of economic initiatives.
In Kebbi state, the comrade Dr. Nasir Idris Kauran Gwandu needs to extend his widely recommended administration to continue the ongoing legacies of Senator Abubakar Atiku Bagudu, like the bioethanol mega plant, maintaining and promoting already established ones ( e.g., GB Food tomato processing plant and WACOT).
Ironically, the southern states (especially the west), where the proposed bill is set to favour, are upping the ante. Lagos, for instance, is making unprecedented investments in energy generation.
The interest in remodelling the proposed Tax Reform Bills is not enough; it is a wake-up call for the North to raise the bar regarding regional industrialisation.
Bilyamin Abdulmumin, PhD, wrote via bilal4riid13@gmail.com.