Former Senate Leader, Mohammed Ali Ndume, has reiterated his call for the withdrawal of the Tax Reform Bills currently before the Senate, stressing the need for wider consultations and necessary adjustments.
Ndume, speaking in Abuja, explained that his insistence on the withdrawal was to ensure that critical stakeholders, including state and local governments, as well as the private sector, are properly consulted before any further steps are taken.
He said: “I’m still insisting that the Tax Reforms Bills be withdrawn for more consultations and buy-in from critical stakeholders like state, local government, and private sectors.”
The senator dismissed claims that the reforms were primarily targeted at northern Nigeria, calling such views naive.
He added: “Those who think that the current tax reforms are only against Northern interests are naive. The law is against all low and middle-income Nigerians.”
Ndume also pointed out the ill-timing of the bill, suggesting that passing it in its current form would exacerbate the already dire economic conditions faced by Nigerians.
He emphasized that the economic hardship many are experiencing would worsen if the reforms were implemented without adequate adjustments.
The senator, who was recently removed as Senate Chief Whip for his outspoken views on national issues, urged greater prudence in managing public resources.
He said: “The FIRS should concentrate on expanding the tax net and collecting more. Also, accountability and transparency should be increased.”
Ndume further called on the Central Bank of Nigeria (CBN) to focus its attention on commercial banks, urging that banks declaring substantial profits should contribute more to the tax system.
The Tax Reform Bills, part of President Bola Tinubu’s broader tax overhaul plan, include proposals to establish the Joint Revenue Board, the Tax Appeal Tribunal, and the Office of the Tax Ombudsman.
However, Ndume expressed concerns about the bill’s timing, the issue of tax derivation, Value Added Tax, and the lack of consensus among Nigerians regarding the reforms.
Ndume stressed that the perception that northern Nigeria was opposed to the reforms was a misunderstanding, stating: “Yes, reform. But even with reforms, you have to prioritize, time it correctly, and ensure the buy-in of Nigerians because this is a democracy. It is the government of the people, for the people, and by the people.”
He further highlighted the need for comprehensive governance reforms, particularly in light of the nation’s personnel and overhead costs, which he said account for a significant portion of the budget.
“Our personnel and overhead expenditure for 2024 is about 50 to 60 percent of the budget itself,” Ndume noted. He emphasized that the focus should be on reforming the government holistically, not just the executive.
In conclusion, Ndume rejected the notion that the North was a financial burden on the country, saying: “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.”
