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The Coalition of Northern Groups (CNG) in Taraba State has strongly criticized the proposed Tax Reform Bill under President Bola Ahmed Tinubu’s administration, alleging that it is strategically designed to benefit the South at the expense of the North.

In a statement released during a press conference in Jalingo, Taraba State’s capital, the group voiced concerns over the economic hardships faced by Northern Nigerians, attributing them to recent federal policies, including the tax reforms, land-border closures, and the removal of petroleum subsidies.

The group’s coordinator, Comrade Idris Ayuba, expressed that the impacts of these policies are disproportionately felt in the North.

He argued that the new Tax Reform Bill would worsen regional inequalities, particularly by reducing the North’s share of revenue, which would further hinder its development and worsen poverty.

“We believe the Tax Reform Bill, along with other policies like the land-border closure, unfairly favors the South while exacerbating the challenges faced by the North,” Ayuba remarked.

“The subsidy removal, for example, has only led to a decline in economic activities, with fewer people affording petroleum products.”

The group also took issue with the federal government’s land-border closure, which they claim has had a more negative economic impact on the North, which traditionally relies on cross-border trade.

Ayuba argued that the policy disproportionately boosts the Southern economy by increasing the demand for locally produced goods and customs revenues, while also skewing economic opportunities toward Southern Nigeria.

“By closing the land borders, the South has gained significantly, while the North, which is more dependent on cross-border trade, has faced huge losses,” he said.

“The closure has led to increased customs duties and taxes in the South, further consolidating their economic advantage.”

The CNG warned that the proposed tax reforms, including changes to the revenue-sharing formula, would reduce Northern Nigeria’s revenue allocation.

This, the group believes, would exacerbate the region’s developmental challenges, including poverty, inadequate infrastructure, and limited access to quality education and healthcare.

“The North already faces significant challenges, and these reforms would only increase the gap between the North and South,” Ayuba added.

“A more favorable revenue-sharing formula for the South would lead to more investments and opportunities in the South, while the North risks further economic decline.”

The group also highlighted the North’s contributions to Nigeria’s economy, especially through agriculture, which they feel has been overlooked in the proposed reforms.

They called for a fairer allocation that takes into account the North’s unique economic and developmental challenges.

“Instead of addressing the long-standing disparities between the North and South, the Tax Reform Bill seems to deepen them,” said the group’s statement.

“We call on policymakers to take into account the North’s significant role in national food production and agriculture, which has often been neglected.”

The group also criticized the federal government for failing to complete critical infrastructure projects in the North, citing delays of over 40 years in the Mambilla Hydroelectric Project, which could generate 3,050 megawatts of electricity, and the Jalingo-Numan Road project, which has been stalled for more than 15 years.

“These uncompleted projects only deepen the development gap between the North and South. Without the completion of these vital projects, the North will continue to lag behind in terms of business opportunities, job creation, and overall economic growth,” Ayuba concluded.

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