Why “The North Is Not a Parasite” — Ndume Insists on Tax Reform Bill Withdrawal

Former Senate Leader Mohammed Ali Ndume has reiterated his call for the withdrawal of the Tax Reform Bills submitted to the Senate, emphasizing the need for broader consultation and key adjustments. Speaking in Abuja, Ndume dismissed claims that northern Nigeria is parasitic, insisting that all regions in the country are interdependent for survival and growth.

“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 said.

Ndume explained that his insistence on withdrawing the bills is to allow for input from critical stakeholders, including state and local governments, as well as the private sector. He argued that the proposed reforms, if implemented in their current form, would worsen the economic hardship faced by low- and middle-income Nigerians.

“Those who think that the current tax reforms are only against Northern interests are naïve. The law affects all low- and middle-income Nigerians,” Ndume stated.

The senator criticized the timing of the proposed reforms, noting that they fail to account for the prevailing economic difficulties. He urged the Federal Inland Revenue Service (FIRS) to prioritize expanding the tax base and enhancing accountability rather than imposing additional burdens on already struggling citizens.

Ndume also called on the Central Bank of Nigeria (CBN) to scrutinize commercial banks, pointing out that institutions reporting significant annual profits should be required to pay higher taxes.

The Tax Reform Bills are part of President Bola Tinubu’s sweeping reforms, including the establishment of a Joint Revenue Board, a Tax Appeal Tribunal, and the Office of the Tax Ombudsman. However, Ndume raised concerns about issues such as derivation, Value Added Tax, and the lack of consensus or public buy-in for the reforms.

“Yes, we need reforms, but even with reforms, you have to prioritize, time them correctly, and ensure the buy-in of Nigerians. This is a democracy — a government of the people, by the people, and for the people,” he said.

Highlighting inefficiencies in budget implementation, Ndume pointed out that the 2024 budget allocates 50 to 60 percent of its resources to personnel and recurrent expenditures. He argued for a holistic approach to governance reforms, encompassing all arms of government.

“Our personnel and overhead expenditure for 2024 is about 50 to 60 percent of the budget itself. Yet, recurrent expenditure has already been exhausted, leaving little room for impactful implementation,” Ndume said.

Reaffirming the North’s contribution to Nigeria, Ndume concluded, “We are not parasites. The North has always been and will continue to be an asset to Nigeria.”