Controversy Deepens Over Tax Tax Reform Bills As Ndume Says North Not Parasitic, All Regions Interdependent

The New Diplomat
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  • Urges FIRS To Focus On Broadening Tax Base, Collection Efficiency

By Kolawole Ojebisi

Former Senate Majority Leader, Ali Ndume, has stated that it’s untrue that the Northern region of Nigeria is feeding fat on the revenues being generated from other regions while contributing little or nothing to the development of the country.

The lawmaker stressed that contrary to the opinion in some quarters that the North is a liability, all regions in the country are interdependent with the North contributing its own quotas to the economic growth of the country.

Ndume, who represents the Borno South Senatorial District in the National Assembly, said on Sunday that all states, zones, and regions in Nigeria are interdependent and rely on one another for survival, irrespective of their individual resources.

“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. Those who believe the current tax reforms are targeted against northern interests are naive. The law applies equally to all low- and middle-income Nigerians,” he declared.

On the proposed tax reforms, Ndume criticised their timing and expressed concerns that the economic challenges faced by Nigerians could worsen if the bills were implemented without adequate consultation.

“I insist that the Tax Reforms Bills be withdrawn for broader consultations and engagement with critical stakeholders, including state and local governments and the private sector,” he said.

Ndume also urged the Federal Inland Revenue Service to focus on broadening the tax base and improving collection efficiency.

He called for greater contributions from commercial banks, which he noted declare significant profits annually.

“The FIRS should concentrate on expanding the tax net and improving collections. Additionally, accountability and transparency in tax administration must be enhanced,” he declared.

He further advised the Central Bank of Nigeria(CBN)to scrutinise commercial banks to ensure equity in their tax contributions.

Ndume raised concerns over President Bola Tinubu’s proposed tax reform package, which includes the establishment of a Joint Revenue Board, a Tax Appeal Tribunal, and the Office of the Tax Ombudsman.

He argued that such reforms should be preceded by broader governance reforms to address Nigeria’s fiscal challenges.

“Our personnel and overhead expenditures for 2024 account for 50 to 60 percent of the budget. Yet, here we are in November, and only 20 percent of the budget has been implemented. Meanwhile, recurrent expenditure has already been exhausted.

“This means over N15tn to N20tn is going into personnel, debt servicing, and recurrent expenditure. We should reform the government, not only the executive – we need to reform the government holistically,” Ndume said.

He stressed the importance of holistic reforms across all arms of government, proper timing, and securing public support for successful implementation.

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