Tax Reform Bills, Assault On North – Group

The Coalition of Northern Groups (CNG), under the leadership of its national coordinator, Comrade Jamilu Aliyu Charanchi, has vehemently opposed the Tax Reform Bills proposed by the administration of President Bola Ahmed Tinubu, describing as a direct assault on Nigerians, especially Northerners.

Speaking during a press conference on Tuesday, the group described the reforms as a direct assault on the Nigerian populace, particularly the North, and accused the government of fostering policies that exacerbate poverty and inequality.

CNG asserted that the proposed reforms disproportionately impact vital sectors, including education, technology, and industrialization, by defunding pivotal institutions such as the Tertiary Education Trust Fund (TETFUND), the National Information Technology Development Agency (NITDA), and the National Agency for Science and Engineering Infrastructure (NASENI).

The group expressed alarm over the implications of these measures. It said the reforms will phase out funding for TETFUND by 2030, threatening the stability of public tertiary institutions, adding that funding  NITDA will cease after 2026, undermining digital inclusion and innovation efforts and the removal of financial support beyond 2026 jeopardises Nigeria’s industrialisation aspirations.

Additionally, the CNG criticised the proposed Value Added Tax (VAT) derivation formula, which introduces a 60% allocation for revenue collection to states like Lagos. The group accused the government of lacking transparency and failing to provide data to justify the change.

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It decried the planned VAT rate hikes, set to reach 15% by 2030, as a significant risk to vulnerable households. Despite the government’s claim to exempt essential goods from VAT, the CNG argued that Nigeria’s unregulated market system nullifies these exemptions.

In its recommendations, the CNG called for the immediate suspension of the Tax Bills and proposed transparency in VAT derivation, retention of developmental agencies, stakeholders engagement,  infrastructure development of dry ports and rehabilitation of river ports across the country.

While commending the Northern Governors Forum, the National Economic Council, and some lawmakers for opposing the proposed reforms, CNG also urged other legislators to take a decisive stand against what it termed “ill-fated policies.”

“The government’s pseudo-reforms have only deepened poverty, exacerbated inequality, and eroded public trust,” said Comrade Charanchi. “We demand the suspension of these tax reforms and call for a more equitable and sustainable approach to tax administration in Nigeria.”