The Northern Elders’ Forum (NEF) has voiced strong opposition to President Bola Ahmed Tinubu’s proposed tax reforms, accusing the administration of disregarding critical voices and rushing policies that could harm the economy.
In a statement issued by the forum’s chairman, A.M. Al-Amin Daggash, the elders urged the federal government to halt the Tax Reform Bills currently before the National Assembly. They expressed concerns over the potential economic impact of the reforms, particularly on ordinary Nigerians.
The NEF called for a more inclusive and consultative approach, warning that the proposed changes could fuel inflation, reduce purchasing power, and increase interest rates if implemented hastily.
“Unnecessary Rush to Implement Tax Reforms”
Daggash criticized the government’s urgency in pushing the reforms, describing the move as “unnecessary” and “premature”.
“The rush to implement these tax reforms is unnecessary. Dialogue, quality contributions, and critical inputs from Nigerians should be prioritized before any decisions are made,” he stated.
He emphasized that broad consultations with stakeholders are essential to ensure that the tax policies are fair and sustainable. The NEF warned that failing to engage Nigerians could worsen economic hardship, particularly for those already struggling with high living costs.
Opposition to VAT Increase
One of the primary concerns raised by the NEF is the proposed increase in Value Added Tax (VAT). The forum argued that raising VAT at this time would hurt consumers, erode purchasing power, and fuel inflation, further weakening the economy.
“The government must demonstrate tangible economic recovery before considering any tax increases,” Daggash said.
He also criticized the VAT revenue-sharing formula, describing it as unjust to states that generate the majority of VAT revenue. According to Daggash, the current formula disadvantages contributing states and fails to reward them fairly. He proposed that VAT revenue should be distributed based on consumption, ensuring that states benefit proportionately from what they generate.
Concerns Over Government’s Handling of Dissent
The NEF accused the Tinubu administration of suppressing dissenting voices and using coercive tactics to push its policies.
“The government has displayed a troubling disregard for patriotic voices and an inclination to suppress opposition,” Daggash said.
The forum argued that rather than silencing critics, the government should welcome diverse perspectives to craft more effective and inclusive policies.
Call for Transparency and Inclusivity
While the NEF acknowledged the need for reforms that align with global best practices, they criticized the Tax Reform Bills for lacking transparency and failing to engage stakeholders.
“Policy-making must reflect the interests and contributions of all Nigerians, not just a select few,” the statement read.
The NEF urged the federal government to revisit the tax reform agenda and ensure that any proposed changes are transparent, inclusive, and fair to all regions and citizens.
Implications for Tinubu’s Administration
The criticism from the Northern Elders is a significant political challenge for the Tinubu administration, as the forum represents influential voices from Nigeria’s northern region. Their concerns could fuel public resistance to the tax reforms and increase pressure on the government to adopt a more consultative approach.
The NEF’s statement is expected to spark further debate on the fairness and timing of the proposed tax reforms, particularly as Nigeria grapples with economic challenges such as rising inflation, currency depreciation, and high unemployment rates.
As the Tax Reform Bills await consideration in the National Assembly, it remains to be seen whether the Tinubu government will heed the call for dialogue or proceed with its current plans.
