Former Senate Leader, Senator Mohammed Ali Ndume, has reiterated his call for the withdrawal of the Tax Reform Bills currently before the Senate, stressing the need for broader consultations and critical adjustments to address stakeholders’ concerns.
Speaking in Abuja on Sunday, Ndume dismissed claims suggesting that northern Nigeria is parasitic, emphasizing that all regions of the country are interdependent for collective survival and growth.
“I’m still insisting that the Tax Reform Bills be withdrawn for more consultations and buy-in from critical stakeholders, including state and local governments, as well as the private sector,” Ndume said.
He described as naïve the notion that the proposed reforms are targeted at northern interests, arguing instead that the bills, in their current form, would disproportionately affect low- and middle-income Nigerians across the country.
Ndume criticized the timing of the bills, highlighting the prevailing economic hardship in the country. He warned that implementing the reforms without addressing fundamental issues would further burden already struggling Nigerians.
“Those who think the current tax reforms are only against northern interests are mistaken. The reality is that the reforms, as they stand, will negatively impact low- and middle-income Nigerians nationwide,” he said.
The senator called for improved fiscal responsibility, urging the Federal Inland Revenue Service (FIRS) to focus on expanding the tax net and improving transparency in revenue collection.
“The FIRS should concentrate on expanding the tax net and collecting more revenue efficiently. Transparency and accountability must also be increased,” Ndume stated.
He also urged the Central Bank of Nigeria (CBN) to closely monitor commercial banks, ensuring they contribute their fair share of taxes, especially given their consistently high profit declarations.
The Tax Reform Bills propose the establishment of the Joint Revenue Board, the Tax Appeal Tribunal, and the Office of the Tax Ombudsman as part of President Bola Tinubu’s comprehensive tax reform strategy.
However, Ndume expressed reservations about the bills, pointing out concerns related to timing, derivation principles, Value Added Tax (VAT) distribution, and the lack of widespread consensus.
“Yes, reforms are necessary, but they must be well-timed, prioritized, and carried out with the buy-in of Nigerians. This is a democracy—a government of the people, for the people, and by the people,” he added.
Ndume argued that governance reforms, rather than just tax reforms, should take priority. He criticized the high cost of governance, noting that a significant portion of Nigeria’s annual budget is consumed by personnel and overhead costs.
“Our personnel and overhead expenditure for 2024 account for about 50 to 60 percent of the budget. Meanwhile, capital projects suffer from under-implementation, while recurrent expenditure is fully exhausted,” he said.
He stressed that reform efforts should be holistic, involving both the Executive and Legislative arms of government.
Addressing claims of the North being parasitic, Ndume firmly rejected the notion, stating:
“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.”
The senator concluded by emphasizing the need for responsible governance and collaborative efforts to achieve meaningful reforms that serve all Nigerians. (Vanguard)
• Senator Mohammed Ali Ndume
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