‘Tax bills can increase poverty’ — northern group asks FG to be pro-people with economic reforms

The Coalition of Northern Groups (CNG), civil society organisations (CSOs) and other stakeholders have called on the federal government to adopt a more inclusive and people-centred approach to economic reforms.

In a communique issued at the end of their town hall meeting held in Kaduna on Thursday, the group also called on lawmakers from the north to turn down the tax reform bills.

On October 13, President Bola Tinubu asked the national assembly to consider and pass four tax reform bills.

The proposed legislations comprise the Nigeria tax bill, Nigeria tax administration bill, Nigeria revenue service establishment bill, and the joint revenue board establishment bill.

Some northern governors and groups have urged the national assembly to reject any legislation that may harm the region’s interests.

In the communique signed by Muhammed Sanusi Ali on behalf of the group, the coalition said the tax reforms could increase poverty, unemployment, weaken educational institutions and worsen the present economic hardship.

The groups argued that some sections of the bill will lead to the defunding of pivotal national 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).

“At the townhall meeting, the following key deliberations and observations were made regarding the proposed tax reform bills,” the group said.

“The participants observed that the proposed tax reform bills, far from being catalysts for economic growth, would increase the existing economic challenges facing the north and Nigeria as a whole.

“The reforms are likely to deepen poverty, increase unemployment, and stifle local businesses already grappling with economic hardship.

“The town hall meeting noted with great concern the provisions in the bills that propose the defunding of pivotal national 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).

“These institutions are critical to education, innovation, and technological advancement, particularly in northern Nigeria, and their defunding would undermine regional and national development.

“It was observed that the reforms appear to disproportionately target northern Nigeria, raising suspicions about their intent.

“The region, already lagging in economic development, would bear a significant share of the economic burden, further marginalising its population”.

The groups said the federal government did not consult with critical stakeholders during the formulation of the bills.

“This exclusion has resulted in policies that fail to reflect the realities and needs of the majority of Nigerians,” the group added.

“The overwhelming majority of participants unequivocally rejected the tax reform bills, viewing them as a direct assault on the economic and social well-being of Nigerians, particularly in northern Nigeria.”