The Presidency on Monday demanded that the Bauchi State Governor, Bala Mohammed, retract what it called his “inflammatory” statement on the Tax Reform Bill.
It said Mohammed’s statement, “We’ll show Tinubu our true colour,” neither reflects the stance of the North nor the constructive dialogue needed between states and the Federal Government.
Tinubu’s Special Adviser on Media and Public Communication, Sunday Dare, stated this in a post he shared on his X handle Monday morning.
Dare was responding to Mohammed’s statement on Wednesday, December 25, 2024, during a Christmas homage by the Christian community at the Government House in Bauchi.
The governor opposed Tinubu’s tax reform policies, describing them as “anti-northern” and favouring only a section of the country.
He warned that if these policies continued, the northern region would “show its true colours” in response.
Mohammed also emphasised that such reforms could lead to economic setbacks and threaten national unity, urging the Federal Governmentnt to reconsider and adopt more inclusive policies.
However, the Presidency said, “I urge him to retract these confrontational remarks and redirect his focus toward productive dialogue with the FG regarding any concerns about the Tax Reform Act.”
“This unfortunate statement does not represent the collective voice of Northern Nigeria. The North, like other regions, seeks collaborative governance and constructive engagement with the Federal Government to address our nation’s challenges.
“Rather than issuing threats, his energy might be better directed toward implementing effective poverty alleviation programmes and ensuring transparent utilisation of these federal resources [N144bn received from FG]. The Tax Reform Act and increased federal allocations significantly benefit the states.”
It said the recent inflammatory rhetoric of Mohammed regarding the Tax Reform Act and direct threats toward the Federal Government is unbecoming of his office as a state governor.
“His statement ‘We will show President Tinubu our true colour’ is particularly concerning and does not reflect the constructive dialogue needed between the state and FG.
“It bears noting that Bauchi State has received N144bn (State and LGA) in federal allocations under the current administration – a significant increase from previous disbursements.
“Yet his state continues to grapple with serious developmental challenges and high poverty rates. As a state governor, he is called to exemplify statesmanship and work toward national cohesion,” Dare opined.
The Presidency highlighted that the N144bn federal allocation to Bauchi State marks one of the most significant increases in federal disbursements, providing the state with substantial fiscal resources.
This includes a recent N2bn special intervention fund allocated to each state to enhance food security.
Additionally, removing fuel subsidy compensation payments has significantly boosted state revenues, along with special considerations for derivation funds aimed at protecting the interests of northern states, it argued.
Regarding tax reforms, Dare emphasised that streamlining multiple taxation systems will alleviate the burden on small businesses in Bauchi.
He added that improvements in revenue collection efficiency through digitalisation, protection for informal sector workers—who form the backbone of the state’s economy—and targeted provisions for agricultural businesses highlight the reforms’ focus on supporting Bauchi’s farming communities.
The Presidency further pointed out that these reforms open doors for development by creating frameworks to attract investments through tax incentives and building capacity within state revenue services.
These initiatives, it argued, reflect the FG’s dedication to supporting state-level development.
It said that instead of opposing these efforts, Governor Mohammed could maximise the benefits by implementing transparent fiscal management systems, developing state-specific tax incentives to attract investors, and investing in agricultural value chains.
Dare stressed that Nigeria’s path to prosperity requires unity of purpose rather than divisive rhetoric.
He urged public officials to rise above regional sentiments and political grandstanding to embrace the collective vision of a stronger, more prosperous nation.
“The challenges we face—poverty to security, economic growth to social development—transcend state boundaries and political affiliations. Indeed, all political leaders must remember that their primary obligation is to improve the lives of their citizens, which is best achieved through constructive dialogue, efficient resource management, and unwavering commitment to national unity.
“The path forward lies not in confrontation but in collaboration, not in threats but in thoughtful engagement, and certainly not in divisive statements but in unified action toward our shared goals of development and progress.
“This is the true leadership Nigeria needs – one that builds bridges, not barriers, and prioritises the collective good over individual or regional interests. Finally, this Hausa might soothe the political nerves of the Governor—“Gyara kayanka baya zama sauke mu raba”.
In October 2024, President Tinubu introduced a series of tax reform bills to the National Assembly to overhaul Nigeria’s tax system.
The four bills—the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill—seek to consolidate existing tax laws, streamline tax administration, and enhance revenue generation.
Key provisions include increasing the Value Added Tax rate from 7.5 per cent to 10 per cent by 2025, with further increments planned, and imposing a 5 per cent excise duty on telecommunications services.
The primary objectives of these reforms are to simplify the tax system, improve compliance, and boost government revenue to fund critical infrastructure and social services.
By consolidating various tax laws into a unified framework, the government aims to reduce complexity for taxpayers and create a more business-friendly environment.
Additionally, the reforms propose tax exemptions for small businesses with annual earnings below ₦50m and a gradual reduction in corporate income tax rates for larger companies, intending to stimulate economic growth and investment.
However, the proposed reforms have sparked significant controversy, particularly among northern political leaders and lawmakers.
Critics argue that changes to the VAT distribution formula, which would allocate a larger revenue share to states generating more VAT, could disadvantage less economically developed northern states, exacerbating regional inequalities.
Concerns have also been raised about the potential increase in the tax burden on consumers and businesses, especially with the planned VAT hike and new excise duties.
Consequently, some northern governors and traditional rulers have called for the withdrawal or reconsideration of the bills, urging further consultations to ensure the reforms are equitable and considerate of all regions’ interests.
However, the Presidency says consultations will continue even as the bill remains in the National Assembly.
