19 Northern state governors have expressed their strong opposition to the Federal Government’s recent Tax Reform Bill. The proposed bill shifts to a derivation-based model for value added tax (VAT) distribution has raised concerns among the governors, who argue it would be disadvantageous to the northern states and other less industrialised regions. The governors convened under the Northern States Governors’ Forum (NSGF) and issued a communique following a strategic meeting in Kaduna, chaired by Governor Muhammad Yahaya of Gombe State. The meeting, attended by northern traditional rulers and military officials, underscored the governors’ united stance against the proposed changes.
A joint meeting of the Northern States Governors’ Forum and Northern Traditional Ruler’ Council (Emirs and Chiefs) was held today, Monday 28 October, 2024. The meeting was also briefed on the security challenges in the north by the Chief of Defence Staff, General Christopher Musa. The meeting deliberated extensively on matters of common interest and resolved to issue the following communique: “forum extends its deepest sympathies to the victims of the recent flood disasters in Maiduguri and other parts of the North, as well as to the families affected by the tragic tanker explosion in Jigawa State. The Forum equally commiserates with other victims of terrorism, banditry and similar criminal activities in the North and Nigeria at large and stand in solidarity with them during these difficult times. We agreed to continue to work with the Federal Government and relevant agencies to provide the necessary support and relief to those affected.
“Forum emphasises that Traditional Institutions are critical in the quest for lasting peace and security in the region. Forum also acknowledged their commitment in bridging the gap between the Government and the people. Forum advocates for increased roles for the Traditional Institutions to maximise cooperation with security agencies in the fight against kidnap for ransom, banditry, cattle rustling, communal clashes, farmers/herder clashes and other forms of criminality. Forum acknowledges the recent gains made against criminals, especially the elimination of bandits and terror leaders. However, we resolved to sustain these gains in order to ensure lasting peace and stability in the sub-region. Forum commend the Federal Government and security agencies for their commitment in ensuring that our communities are safe and secure. Particularly we commend the untiring commitment of the Chief of Defence Staff General C. J Musa whose professionalism and innovative approach has made difference in security architecture of the Country at large. Nevertheless more need to be done to address pockets of challenges that abound in the Northern Region.
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.
“Forum resolves to call on the Federal Government and relevant Agencies to urgently address the current electricity power blackout affecting most of the Northern States due to vandalisation of electricity transmission infrastructure. This matter not only underscores the vulnerability of critical infrastructure, but also the need to build a alitional transmission lines and diversify our energy supply so as to better connect our region and improve our energy resilience. Forum agrees that Northern Nigeria holds immense agricultural potentials, which, if fully harnessed, can significantly alleviate hunger and boost economic growth. To achieve this, we resolved to provide adequate support to our farmers, including access to financing, modern farming techniques and infrastructure such as roads and irrigation systems. Agriculture should not only be seen as a means to feed our people but also as a catalyst for industrialisation and job creation across the region. That can be achieved through re-industrialisation of the North especially by reviving the textile value chain and development of other agro-allied industries.
“Forum commends His Excellency, the President and Commander-In-Chief of the Armed Forces of the Federal Republic of Nigeria for the reform initiative in the livestock sub-sector and agreed to provide the necessary political will and commitment to ensure the success of the Federal Government livestock development initiatives. The Forum also agreed to sustain engagement and cross-fertilisation of ideas with the Presidential Livestock Reforms Implementation Committee to achieve greater results. Forum acknowledges the fact that climate change has greatly affected our environment resulting in the recent flood incidents in many parts of the North and therefore resolved to partner with the Federal Government and other stakeholders to build irrigation infrastructure like canals and waterways to divert excess water and channel them towards irrigation activities, thus enhancing rural livelihoods and safeguarding food security. Forum agrees to support and key-in to any initiative aimed at addressing the challenges of out-of-school-children and improving educational outcomes in the sub-region.
“Forum notes with dismay the content of the recent Tax Reform Bill that was forwarded to the National Assembly. The contents of the Blare against the interests of the north and other sub-nationals especially the proposed amendment to the distribution of Value Added Tax (VAT) to Derivation-based Model. This is because companies remit VAT using 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 National Assembly to oppose any bill that can jeopardise the well-being of our people. For the avoidance of doubt, the Northern Governor’ Forum is not averse to any policies or programmes that will ensure the growth and development of the Country. However, the Forum calls for equity and fairness in the implementation of all national policies and programmes so as to ensure that no geopolitical zone is short-changed or marginalised.
“On the present economic hardship affecting the Country, the Forum is appealing to all citizens to remain calm, as the states and Federal Government are working hard to implement measures that will cushion effects of the hardship. The contents of the reforms are against the interest of the North and other sub-nationals, especially the proposed amendment to the distribution of Value Added Tax to a Derivation-based Model.” Currently, VAT is remitted based on the location of a company’s headquarters rather than where goods and services are consumed. The governors contend that the proposed model would severely impact the revenue distributed by the Federal Accounts Allocation Committee (FAAC), particularly in northern states where Sharia law limits the sale of alcoholic beverages. In their communique, the governors unanimously rejected the proposed Tax Amendments and called upon National Assembly members to oppose any bill that threatens their constituents’ welfare.
“We demand equity and fairness in national policy implementation,” they emphasised. “No geopolitical zone should be shortchanged or marginalised.” Despite their opposition, the governors clarified their support for policies that promote the nation’s growth. “The Northern Governors’ Forum is not averse to any policies or programmes that will ensure the growth and development of the Country,” they added. As Nigeria grapples with economic challenges, the NSGF appealed for calm among citizens, assuring them that both state and federal governments are striving to alleviate the hardships faced by the populace.
