Former Senate Leader, Senator Mohammed Ali Ndume, has voiced strong opposition to the Tax Reform Bills currently before the Senate, insisting that they should be withdrawn for broader consultations.
Speaking in Abuja on Sunday, Ndume defended the north, stating that the region has always been, and will continue to be, a crucial asset to Nigeria, rejecting any claims that it is a liability.
Ndume emphasized that the northern region is not parasitic, as some narratives suggest, but rather a vital contributor to the country’s development. He firmly stated that the North is an asset to Nigeria and should not be viewed negatively.
The Senator expressed his concerns about the Tax Reform Bills, which include proposals for the creation of a Joint Revenue Board, a Tax Appeal Tribunal, and a Tax Ombudsman as part of President Bola Tinubu’s tax reform agenda. Ndume argued that these reforms lack widespread consensus and could disproportionately affect low- and middle-income Nigerians across the country.
He called for the withdrawal of the bills to allow for more consultations with critical stakeholders, including state and local governments, as well as the private sector. Ndume stressed that the negative impact of the reforms would not be limited to the north but would be felt by Nigerians nationwide.
Ndume also argued that governance reforms, particularly in addressing the high cost of governance, should take priority over the proposed tax changes. He pointed out that a significant portion of the national budget, around 50 to 60 percent, is consumed by personnel and overhead costs, leaving little room for capital projects.
He further urged the Federal Inland Revenue Service to focus on expanding the tax base and improving revenue collection efficiency, rather than imposing additional burdens on citizens. He also called for greater transparency and accountability in the tax collection process.
Additionally, Ndume urged the Central Bank of Nigeria to ensure that commercial banks contribute their fair share of taxes, given their high profits. He called for strict monitoring of these banks to ensure they fulfill their tax obligations.
While acknowledging the need for reforms, Ndume stressed that they must be carefully timed and inclusive, with the involvement of all Nigerians. He concluded by reaffirming that the North’s contributions to Nigeria’s agricultural and economic output are invaluable, and that collaborative, inclusive efforts are essential for reforms that benefit all citizens.
“The North was, is, and will never be a parasite or dependent on any region or even the country. We are assets, not liabilities, to Nigeria,” Ndume declared, countering narratives that suggest otherwise.
” I’m still insisting that the Tax Reform Bills be withdrawn for more consultations and buy-in from critical stakeholders, including state and local governments, as well as the private sector,” he said.
He continued, ” Those who think the current tax reforms are only against northern interests are mistaken. The reality is that the reforms, as they stand, will negatively impact low- and middle-income Nigerians nationwide.
” Our personnel and overhead expenditure for 2024 account for about 50 to 60 percent of the budget. Meanwhile, capital projects suffer from under-implementation, while recurrent expenditure is fully exhausted.
” The FIRS should concentrate on expanding the tax net and collecting more revenue efficiently. Transparency and accountability must also be increased,” Ndume stated.
” Commercial banks must be closely monitored to ensure they are paying the taxes they owe. They consistently declare high profits and must be held accountable.
” Yes, reforms are necessary, but they must be well-timed, prioritized, and carried out with the buy-in of Nigerians. This is a democracy—a government of the people, for the people, and by the people.
” Our region contributes immensely to the country’s agricultural and economic output. We are an integral part of Nigeria’s progress and prosperity. Collaborative and inclusive efforts are key to achieving meaningful reforms that serve all Nigerians,” Ndume added.
