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‘Tax Bills Could Cripple Financially Weak States’ – Tinubu Warned

Published

1 month ago

Dec 11, 2024.

Governor Dauda Lawal of Zamfara State has raised concerns over the proposed tax reform bills currently before the National Assembly, warning that financially weaker states might struggle to survive if the reforms are passed and signed into law by President Bola Tinubu.

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EKO HOT BLOG reports that Speaking during an interview on Channels TV on Tuesday, Lawal expressed the need for caution in implementing the reforms, highlighting potential long-term repercussions.

“Some states may not be able to survive, so it is something that must be carefully studied so that we don’t hurt ourselves in the long run,” Lawal stated. He added, “The tax issue has a lot of components – there is the good aspect and the bad aspect. We are studying the situation to advise our people on the way forward. It’s an ongoing process, and we will continue with the engagement.”

The tax reform bills introduced by the Tinubu administration have sparked widespread controversy, drawing criticisms from various quarters, including the 36 state governors under the National Economic Council (NEC). Northern governors, in particular, have strongly opposed parts of the proposed reforms, citing their potential adverse impact.

Governor Lawal, one of the northern governors, further noted that the reforms could jeopardize the ability of states to pay the recently proposed ₦70,000 minimum wage.

“Reforms in a system are inevitable, and we should always expect them. However, we must be careful not to rush into something that could hurt us later,” he said.

Tax Bills States

Lawal highlighted specific components of the bills, particularly those related to revenue derivation, which could significantly affect inflows to some states. “If we are to go by it, it is going to affect some states in terms of their revenue inflows, and invariably, it may make it difficult for some states to pay their salaries,” he cautioned.

The governor called for a thorough review of the reforms and urged stakeholders to work toward a collective and informed decision that would not destabilize the financial stability of the states.