At the heart of Nigeria’s political scene, a heated debate appears to be raging between members of the Northern Governors Forum and the Arewa Civil Rights Movement (ACRM). Tensions have flared following the Northern Governors Forum’s instruction to the region’s legislators to reject four tax reform bills tabled by President Bola Tinubu, including the Nigeria Tax Bill 2024 and the Tax Administration Bill. At the heart of these differences is deep concern over the impact of the new Value Added Tax (VAT) sharing structures on the North.
On the one hand, northern governors fear that the tax reforms will disadvantage their region. On the other, ACRM Chairman Dr Agabi Emmanuel has described the directive as “ill-conceived” and degrading to the image of the North, going so far as to call it begging. In an impassioned speech in Abuja, he highlighted the potentially dire consequences of such a rejection of the bills.
According to Dr Emmanuel, governors are overstepping their authority by seeking to impose their will on federal legislators, who are mandated to represent their constituents and not the interests of state governors. The proposed VAT reform is of particular interest because it would reduce the federal government’s share from 15% to 10%, allocating a portion to states to encourage local investment.
In an appeal to northern states, Dr Emmanuel urged them to seize the opportunity to foster economic growth and not reject the bills in the name of alleged regional disadvantage. “Rejecting these bills would be a sign of the inability of legislators to serve their constituents,” he warned, hinting at possible recalls if representatives yield to the governors’ directive.
At the heart of this complex debate are political, economic and social issues that are crucial to Nigeria’s future. The final decision on the fate of these bills is sure to shape the country’s fiscal and political landscape, while revealing the dynamics of power and influence at work within Nigerian society.