Ndume: North Is Not a Parasite, Tax Reform Bills Require Broader Consultation

DDM News

Former Senate Leader, Ali Ndume, has dismissed claims that the Northern region of Nigeria is a parasite or dependent on other parts of the country following the tax reform bill.

He emphasized that all states and regions in Nigeria are interdependent, relying on one another for survival, regardless of their individual resources.

This was gathered by Diaspora digital media (DDM) from a press statement issued by Ndume on Sunday, where he reiterated his concerns over the proposed tax reform bills, which he believes require further consultation to ensure fairness and equity.

Ndume categorically refuted the notion that the tax reform bills are designed to target Northern interests, describing such views as naive.

According to him, the reforms are national in scope and would impact all low- and middle-income Nigerians equally.

“The North was, is, and will never be a parasite or dependent on any region or even the country.

“We are assets, not liabilities, to Nigeria,” he declared.

While the senator acknowledged the necessity of reforms in Nigeria’s tax system, he criticized the timing and structure of the proposed changes, warning of their potential negative impacts.

He noted that the economic challenges faced by Nigerians could be exacerbated if the reforms are implemented without adequate stakeholder engagement.

He called for the withdrawal of the Tax Reform Bills to allow for broader consultations with critical stakeholders, including state and local governments and the private sector.

Ndume expressed concerns that the proposed reforms, which include the establishment of a Joint Revenue Board, a Tax Appeal Tribunal, and the Office of the Tax Ombudsman, could place an undue burden on Nigerians already grappling with economic hardships.

He argued that these changes, while ambitious, fail to address the root causes of Nigeria’s fiscal challenges.

The senator highlighted several potential negative effects of the proposed tax reforms.

He pointed out that increasing the tax burden on low- and middle-income earners would worsen poverty levels and widen the inequality gap in the country.

He argued that these groups are already disproportionately affected by inflation, high living costs, and stagnant wages.

Ndume also criticized the current inefficiencies in Nigeria’s tax collection system, which he believes must be addressed before any reforms are introduced.

He urged the Federal Inland Revenue Service (FIRS) to focus on broadening the tax base and improving collection efficiency.

According to him, expanding the tax net would ensure a more equitable system and reduce the overreliance on the same set of taxpayers.

Another area of concern raised by Ndume was the perceived lack of accountability and transparency in tax administration.

He emphasized that any tax reform must prioritize improving governance and ensuring that taxpayers’ money is effectively utilized for the benefit of all citizens.

He called for the government to address issues of wasteful spending and corruption, which continue to undermine Nigeria’s economic stability.

Ndume proposed several recommendations to mitigate the potential negative impacts of the tax reforms.

He called on the FIRS to target commercial banks, which he noted declare significant profits annually, for greater contributions to the tax pool.

He also urged the Central Bank of Nigeria (CBN) to scrutinize these institutions to ensure equity in their tax contributions.

Furthermore, he advocated for holistic governance reforms to address Nigeria’s fiscal challenges.

He noted that personnel and overhead expenditures for 2024 account for 50 to 60 percent of the national budget, yet by November, only 20 percent of the budget had been implemented.

This inefficiency, he argued, highlights the urgent need for broader reforms beyond just the tax system.

“Our personnel and overhead expenditures for 2024 account for 50 to 60 percent of the budget.

“Yet, here we are in November, and only 20 percent of the budget has been implemented.

“Meanwhile, recurrent expenditure has already been exhausted,” he stated.

He added that a significant portion of the budget, ranging from N15tn to N20tn, is being consumed by personnel costs, debt servicing, and recurrent expenditures.

Ndume concluded by urging the government to exercise prudence and transparency in managing Nigeria’s resources.

He emphasized the importance of consulting widely with stakeholders to develop a more equitable tax system that addresses the needs of all Nigerians.

According to him, reforms should not only focus on increasing revenue but also on ensuring that the government operates more efficiently and transparently.

The press statement reflects Ndume’s firm stance on rejecting any narrative that paints the North as a burden to the nation while advocating for reforms that align with Nigeria’s economic realities.

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