State Governors Want Tinubu to Delay New Tax Reforms Bills — Nasarawa Governor Sule
State governors across Nigeria have urged President Bola Ahmed Tinubu to delay the implementation of new tax reform bills, citing concerns about the potential economic impact and the need for thorough consultation. Nasarawa State Governor, Abdullahi Sule, disclosed this on Monday during a media briefing, emphasizing that the governors are not opposed to reforms but are advocating for a more inclusive approach to ensure sustainability and fairness.
Governor Sule explained that the proposed tax reforms, while aimed at boosting government revenue, could place additional financial burdens on already struggling businesses and individuals. He stressed that the timing of these reforms is critical, as many Nigerians are still grappling with the economic effects of subsidy removal, inflation, and the ongoing recovery from the COVID-19 pandemic.
“Governors across the federation are not saying no to tax reforms,” Governor Sule said. “We are simply urging the federal government to consider the timing and the processes involved. There must be adequate consultation with stakeholders, including the private sector and state governments, to ensure these reforms achieve their intended objectives without causing undue hardship.”
The tax reform bills, currently under consideration by the National Assembly, include measures to expand the tax base, increase tax compliance, and introduce new levies on certain goods and services. While proponents argue that these measures are essential for bridging Nigeria’s revenue gap and funding critical infrastructure, critics warn of potential risks, including stifling economic growth and reducing the purchasing power of citizens.
Governor Sule also highlighted the importance of harmonizing tax policies between federal and state governments to avoid double taxation and inefficiencies. “The states need to be carried along in these discussions. We are partners in governance, and any policy that affects revenue generation must align with the realities on the ground,” he added.
Economic analysts have weighed in on the issue, with many suggesting that a phased implementation of the reforms could strike a balance between revenue generation and economic stability. They argue that robust stakeholder engagement and clear communication of the benefits and objectives of the reforms are crucial to gaining public support.
As the debate continues, it remains to be seen how the federal government will navigate these concerns. President Tinubu’s administration has repeatedly emphasized its commitment to economic reforms, but ensuring inclusivity and minimizing unintended consequences may be key to their success.
