Northern Governor’s Forum

Tax reform bill: What the North needs to do

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.

Northern Govs Forum, monarchs meet in Kaduna over security challenges

By Anwar Usman

A meeting between the Northern Governors Forum and Northern Traditional Rulers Council is currently ongoing in Kaduna hoping to tackle the region’s pressing security and developmental challenges.

In attendance at the meeting which took place at the state government House, were Nigeria’s Chief of Defence Staff, General Christopher Musa.

While welcoming his colleagues, the Chairman of the Northern States Governors’ Forum, Muhammadu Yahaya, called for collective action to tackle challenges bedevilling the region.

The region is currently battling with insecurity, economic hardship, environmental degradation, and youth restiveness.

Yahaya emphasized the need for collective action, stating, “Our collective resolve is being tested by the ongoing challenges that we face. However, our unity and commitment to the prosperity of the people remain our greatest source of strength that will enable us to overcome those challenges.”

The governor also acknowledged these challenges, saying, “Terrorism, banditry, kidnap-for-ransom, farmer-herder clashes, drug abuse, the menace of Almajiri and out-of-school children, poverty, and unemployment. We must continue to work with the Federal Government and relevant agencies to provide the necessary support and relief to those affected.”

To tackle these challenges, the governors proposed various ways including “sustaining gains against criminals, studying and implementing the Coalition of Northern Group’s Security Committee report, and engaging with security agencies and civil society groups.

“Investing in education, skills development, and job creation; supporting small and medium enterprises; and attracting investment to northern states; as well providing support to farmers, ensuring rural security, and promoting agro-allied industries.

“Partnering with the Federal Government and stakeholders to build irrigation infrastructure and promote sustainable practices.”

In his remarks earlier, Kaduna Governor and chief host, Senator Uba Sani, while welcoming his colleagues and traditional rulers in the region as well as the Chief of Defence, General Christopher Musa, emphasised unity and collective action against regional challenges.

Sani, also acknowledged the northern Governors’ commitment to peaceful coexistence and shared prosperity, urging that “We must work together to realize our vision of a secure, peaceful, and prosperous North.”

The Governor commended President Bola Tinubu’s efforts to combat insecurity, citing the establishment of a Joint Military Command and Operation Fansan Yamma as clear demonstrations of the Federal Government’s commitment.