The 19 Northern states’ governors have expressed strong displeasure over President Bola Tinubu’s recent Tax Reform Bill submitted to the National Assembly for approval ¹. Specifically, they rejected the proposed shift to a derivation-based model for Value Added Tax (VAT) distribution, citing it would disadvantage Northern states and other less industrial regions.
Key Concerns:
- VAT Distribution: The governors argue that VAT is currently remitted based on company headquarters’ location, not consumption ¹.
- Economic Hardship: They appeal to citizens to remain calm as states and the Federal Government work to implement measures to alleviate economic hardship.
- Equity and Fairness: The Northern Governors’ Forum demands fairness in national policy implementation, ensuring no geopolitical zone is marginalized [1).
Northern Governors’ Forum Response
The Forum, chaired by Governor Muhammad Yahaya of Gombe State, voiced strong opposition in a communique after a strategic meeting in Kaduna ¹. The meeting included traditional rulers, the Chief of Defence Staff, General Christopher Musa, and other key stakeholders.
Background
President Tinubu has met with state governors on several occasions to address economic challenges, including food security and insecurity ². However, the tax reform bill has sparked controversy, particularly among Northern states.
