“Dead on Arrival”: Sen. Ndume Rallies Opposition Against Tinubu’s Tax Reform Bills

President Bola Tinubu’s proposed tax reform bills have continued to meet with stiff resistance from Northern leaders, who argue the policies could severely impact their region’s revenue streams.

Leading the charge is Ali Ndume, a federal lawmaker representing Borno South Senatorial District in the National Assembly. Ndume has denounced the bills as “dead on arrival,” acknowledging concerns that the legislation would deepen the financial challenges in Nigeria’s northern regions.

Opposition to the bills has been backed by Northern political figures, traditional rulers, and even the Northern Governors’ Forum, who view the proposed tax policies as a direct threat to their regional economic stability. According to Ndume, the widespread sentiment in the North is against the VAT restructuring component, which would change how VAT is distributed between the federal government and the states.

Northern leaders argue that, given their region’s relatively limited industrial and economic activity compared to the South, any decrease in federal revenue allocations could leave them vulnerable.

“Our people are saying they don’t want the VAT bill; they don’t even want to hear about it,” Ndume declared on Channels Television’s Politics Today program.

He urged President Tinubu to heed the advice of the Northern Governors’ Forum and the National Economic Council (NEC) to withdraw the bill immediately.

“It will be fair to shut the bill down; it is the fairest thing to do,” Ndume added, noting that he has already started rallying his colleagues to reject the bills outright.

Background on the Tax Reform Bills

The tax reform bills, first introduced as part of President Tinubu’s broader fiscal strategy, seek to diversify Nigeria’s revenue sources beyond oil and boost tax collection across all sectors. At the heart of the proposed changes are measures that would restructure Value Added Tax (VAT) allocations, aiming to improve equity in revenue distribution and streamline tax collection nationwide.

Many have argued that these reforms will reduce Nigeria’s heavy dependence on crude oil revenue, create a more balanced economy, and ultimately fund national development initiatives. However, the proposed shift has sparked fierce resistance from northern leaders, who worry that it could lead to a revenue shortfall for their region, which is heavily dependent on funds generated from the oil-rich South.

The economic disparities between Nigeria’s northern and southern regions have long fueled tension in revenue-sharing discussions. The North, which holds significant political influence, is often criticized as economically dependent on the oil and tax revenue generated primarily in the South. Critics frequently characterize the North as a “parasite” in the nation’s fiscal structure, benefiting disproportionately from federal allocations sourced from southern wealth.

Against this backdrop, the new tax reforms are seen as a threat to this status quo. The VAT restructuring, for instance, would reduce the federal government’s VAT pool, which currently benefits states with lower economic activity. Under the new system, VAT revenue may increasingly flow back to the areas where it is generated, predominantly in the South, thereby challenging the North’s dependence on federal allocations for its budgetary needs.

However, in addition to revenue sharing concern, Ali Ndume’s argument reflects a larger sentiment among many that current economic conditions—marked by high inflation, currency devaluation, and diminished purchasing power—are not conducive to implementing new taxes.

“Nigerians are willing to pay taxes but only when they can afford it,” he remarked. “Right now, people are struggling to survive. Let people live first before you start asking them for taxes.”

Ndume, who belongs to President Tinubu’s All Progressives Congress (APC), argued that the current economic climate demands tax relief, not additional burdens. According to him, the tax reform bills will only exacerbate economic hardship for everyday Nigerians. He noted that before imposing additional taxes, the government should focus on internal reforms to reduce wasteful spending and create a more transparent governance structure.

“What he [Tinubu] needs to do is to withdraw the bill, educate Nigerians, and make us understand it,” Ndume stated. “We are representing the people, and they have already made their stance clear.”

This opposition has drawn considerable attention from Nigeria’s 36 state governors, many of whom have joined calls for Tinubu to reconsider the bills.

Tinubu Stands His Ground But There’s Possibility Amendments

Despite the mounting criticism, President Tinubu has shown no intention of retracting the bills. However, he has expressed a willingness to consider “inputs and necessary changes” from lawmakers. The President’s openness to amendments suggests that there may be room for compromise, though he remains adamant about moving forward with the reforms as part of his broader economic restructuring agenda.

Tinubu’s administration is keen on its belief that the tax reforms are essential for addressing Nigeria’s fiscal deficit and funding national development. The bills also align with the recommendations of the National Economic Council (NEC), which emphasizes the need to broaden the tax base to reduce dependency on oil revenues and ensure more equitable development. However, without Northern support, pushing the reforms through the National Assembly will likely be challenging.