North Economically Viable – Ndume

Former Senate Leader Mohammed Ali Ndume emphasised on Sunday that the North is not economically parasitic.

Representing Borno South Senatorial District in the National Assembly, Ndume highlighted the interdependence of all states, zones, and regions in Nigeria for mutual survival, regardless of wealth.

“The North has never been, and will never be, a parasite or dependent on any region or nation. We are assets, not liabilities, to Nigeria. Those who believe the current tax reforms solely target Northern interests are mistaken. These laws affect all low and middle-income Nigerians,” he asserted.

Recently removed from his position as Senate Chief Whip due to his outspoken views on issues impacting ordinary Nigerians’ lives, Ndume urged prudent governance to ensure the nation’s resources are effectively utilised for the populace’s benefit.

The seasoned senator criticised the timing of the tax reform bills, warning that Nigerians’ economic difficulties could worsen. “I maintain that the Tax Reform Bills should be withdrawn for further consultations with essential stakeholders, including state and local governments and the private sector,” he stated.

He recommended that the Federal Inland Revenue Service (FIRS) expand its tax base while emphasising the need for increased accountability. “The FIRS should focus on broadening its tax net and enhancing revenue collection. Greater transparency and accountability are crucial,” he noted.

Ndume also called for the Central Bank of Nigeria (CBN) to scrutinise commercial banks, advocating for higher tax contributions from institutions that report significant annual profits.

He criticised the timing of the proposed bills, suggesting that governance reforms should precede tax reforms. The bills include plans to establish the Joint Revenue Board, the Tax Appeal Tribunal, and the Office of the Tax Ombudsman, all part of President Bola Tinubu’s extensive tax reform initiative.

Highlighting his concerns, Ndume pointed to issues such as poor timing, derivation questions, Value Added Tax, and the absence of consensus among the Nigerian populace. “Yes, we need reform. However, any reforms must be prioritised and timed appropriately, ensuring public buy-in, as this is a democracy. It is a government of the people, for the people, and by the people,” he stated.

He further emphasised the need for comprehensive government reform, noting that personnel and overhead costs account for approximately 50 to 60 per cent of the budget 2024.

“As we approach November, 20 per cent of the budget remains unimplemented, while recurrent expenditure has already been fully utilised. This means over 15 to 20 trillion naira is allocated to personnel, debt servicing, and recurring costs. We must reform the government as a whole, not just the Executive,” he concluded.