Presidency Urges Bauchi Governor To Adopt Constructive Engagement

The Presidency has strongly condemned recent comments made by Bauchi State Governor, Bala Mohammed, regarding the Federal Government’s tax reform initiatives. Governor Mohammed, during a Christmas homage on December 25, 2024, referred to the reforms as “anti-northern” and threatened that the North would “show its true colours” if these policies persist. This statement has drawn sharp criticism, with the Presidency describing it as inflammatory and misrepresentative of northern sentiments.

The Presidency’s Response

In a statement shared by Tinubu’s Special Adviser on Media and Public Communication, Mr. Sunday Dare, the Presidency urged Governor Mohammed to retract his remarks and focus on fostering constructive dialogue. It argued that such rhetoric undermines national unity and fails to reflect the collective aspirations of northern Nigeria, which values collaboration with the Federal Government to tackle pressing national challenges.

Dare highlighted that under Tinubu’s administration, Bauchi State has received significant financial support, including ₦144 billion in federal allocations and ₦2 billion in special intervention funds for food security. These resources, coupled with increased revenues from subsidy removal and derivation funds, provide a robust foundation for state-level development. Yet, Bauchi continues to face high poverty rates and developmental challenges.

The Presidency emphasized that Governor Mohammed should channel his efforts toward transparent governance and effective poverty alleviation rather than issuing threats. It also outlined the potential benefits of the tax reforms, particularly in supporting small businesses, digitalizing revenue collection, and promoting agricultural value chains, which are critical for northern states like Bauchi.

The Tax Reform Bill: A Brief Overview

The Tax Reform Bill, introduced by President Tinubu in October 2024, aims to consolidate Nigeria’s tax laws, simplify administration, and enhance revenue generation. Key provisions include:

1.Increasing VAT from 7.5% to 10% by 2025, with further increments planned.

2.Excise duties of 5% on telecommunications services.

3.Tax exemptions for small businesses earning below ₦50 million annually.

4.A phased reduction in corporate income tax rates to spur economic growth and investment.

The reforms seek to address systemic inefficiencies in the tax system while promoting fairness and equity. For northern states, digital tax systems and agricultural incentives are tailored to stimulate growth in rural economies.

Regional Concerns and Controversy

While the Presidency defends the reforms as a pathway to national development, opposition has emerged, particularly from northern leaders. Critics argue that the VAT distribution formula, favoring states that generate more revenue, may exacerbate economic disparities between northern and southern regions. There are also concerns about increased tax burdens on consumers and businesses, potentially deepening poverty.

Some northern governors and traditional rulers have called for further consultations to address regional disparities in the reforms. However, the Presidency maintains that the legislation remains open to dialogue and adjustments to ensure inclusivity.

The Way Forward

The Presidency’s stance underscores the need for unity and constructive engagement among political leaders. Governor Mohammed is urged to pivot from divisive rhetoric and leverage available federal resources to address Bauchi’s developmental challenges. Transparent fiscal management and collaboration with the Federal Government are crucial for achieving sustainable progress.

As Nigeria navigates its tax reform journey, balancing national goals with regional interests will be critical. This requires mutual understanding, compromise, and a shared commitment to national unity and economic growth.