Governor Sule Defends Northern Stance On Tax Reform Bill, Calls For Fair VAT Distribution.
Nasarawa State Governor Abdullahi Sule has affirmed that Northern governors are not opposed to President Bola Tinubu, despite recent objections to a tax reform bill put forward by his administration. Sule stressed that Northern leaders were instrumental in bringing Tinubu to office and are instead focused on ensuring fair economic policies.
The tax reform bill, submitted by President Tinubu to the National Assembly on 3 October 2024, proposes significant changes, including renaming the Federal Inland Revenue Service (FIRS) to the Nigeria Revenue Service (NRS) and introducing VAT exemptions for oil and gas exports, crude petroleum oil, feed gas, and goods used in donor-funded humanitarian projects.
Northern governors, however, have raised concerns, particularly over the VAT distribution mechanism in the proposed legislation. In a communiqué released on Monday, the Northern Governors’ Forum, led by Gombe State Governor Muhammadu Inuwa, urged the National Assembly to oppose provisions that could “jeopardise the well-being” of Northern states. The statement reflects fears that the new bill could result in an uneven distribution of resources, potentially disadvantaging Northern regions.
Governor Sule, addressing the issue on Channels Television, clarified that Northern leaders are not against the President but are advocating for equitable VAT distribution. “We cannot bring President Tinubu into office and then turn around to oppose him,” Sule stated, underscoring that the Northern governors’ main concern is with the bill’s VAT allocation formula. “We have a right to agree or disagree with aspects of the bill. What we are calling for is fairness in the distribution of VAT revenues,” he explained.
The call for fair distribution of VAT reflects longstanding regional concerns about resource allocation across Nigeria’s states. As the National Assembly considers the bill, both Northern governors and traditional rulers have expressed their hope for amendments that will support balanced economic growth and resource equity throughout the country.
