Democracy Newsline NewspaperDemocracy Newsline Newspaper
  • Home
  • Politics
    Politics
    Show More
    Top News
    In Rivers, Asíwájú Tinubu harps on unity, non-violence
    3 years ago
    Kogi Guber: Olayinka Braimoh Popularity Soars Ahead of other candidates  
    3 years ago
    Labour Party Dismisses Report of Arrest of National Chairman
    2 years ago
    Latest News
    GROUP DONATES BILLBOARD FOR SENATOR KARIMI OVER HIS OUTSTANDING PERFORMANCES
    21 hours ago
    Former Jigawa Governor Sule Lamido Set to Pick PDP National Chairman Nomination Form Today.
    22 hours ago
    ODODO VANGUARD LAUNCHES “RENEWED HOPE CONTINUITY MILLION MARCH IN KOGI”
    4 weeks ago
    LG Election: Ebonyi Journalist Declares Interest for Ishielu Chairmanship Poll
    1 month ago
  • Technology
    TechnologyShow More
    Key Takeaways from the Kogi Dialogue Marking Governor Ododo’s First Year in Office
    9 months ago
    Bala Wunti in the News Again
    9 months ago
    Dangote Refinery Slashes Ex-Depot Petrol Price to N890 Per Litre
    9 months ago
    Ajaokuta LNG Plants Will Position Kogi as a Key Player in Nigeria’s Energy Sector – Governor Ododo
    9 months ago
    Ughievwen Monarch Commends Tinubu for Approval of New 10,000 bpd Refinery in Imode
    9 months ago
Reading: The Looming Threat of Tinubu’s Tax Reforms: Can States Survive the Financial Storm?
Share
Notification Show More
Latest News
Former Kabba/Bunu Chairman, Moses Olorunleke, Extends Birthday Greetings to Hon. Femi Omoga Owoniyi
News
Democracy Newsline Newspaper Extends Warm Wishes to Uncle Justin Bello on 60th Birthday
News
Democracy Newsline Newspaper Extends Birthday Wishes to Chief Femi Owoniyi Omoga
News
Veteran, Justin Bello Celebrates Six Decades of Life
News
ARMTI Partners with Abia State Government, Launches South East Regional Office
News
Aa
Democracy Newsline NewspaperDemocracy Newsline Newspaper
Aa
  • Economics
  • Politics
  • Business
  • Science
  • Technology
  • Home
  • Politics
  • Technology
Have an existing account? Sign In
Follow US
  • Advertise
© 2023 Democracy Newsline All Rights Reserved.
Democracy Newsline Newspaper > News > News > The Looming Threat of Tinubu’s Tax Reforms: Can States Survive the Financial Storm?
News

The Looming Threat of Tinubu’s Tax Reforms: Can States Survive the Financial Storm?

Democracy Newsline
Last updated: 2024/12/11 at 6:55 AM
Democracy Newsline 11 months ago
Share
SHARE

The Looming Threat of Tinubu’s Tax Reforms: Can States Survive the Financial Storm?

By Bala Salihu Dawakin kudu
December 11, 2024

The newly proposed tax reforms under President Bola Ahmed Tinubu’s administration have sparked nationwide anxiety, with critics warning of severe economic consequences for Nigeria’s states, especially those already grappling with fiscal instability.

These sweeping changes, intended to increase federal revenues and reduce dependency on oil, have stirred widespread resistance from state governors, civil society organizations, and everyday Nigerians who fear the reforms could deepen economic hardships and strain the country’s fragile federal structure.

Governors from the 36 states, particularly the 19 northern states, have voiced unanimous rejection of key aspects of the tax bills. They argue that the reforms, if implemented as currently proposed, could exacerbate inequality, undermine financial stability, and leave states unable to meet their basic obligations, such as paying salaries and funding essential services.

President Tinubu’s administration has been advised to approach the reforms with caution. Governance reforms are inevitable, but their implementation must be well-considered to avoid unintended consequences. Rushing these tax bills through the National Assembly without adequate consultation and adjustment could irreparably harm Nigeria’s economic and political landscape.

Many states are already struggling to meet financial obligations, with federal allocations forming the bulk of their revenues. The proposed N70,000 minimum wage further complicates this picture, as states with limited internally generated revenue (IGR) may find themselves in dire straits.

For states like Zamfara, Jigawa, Yobe, and Kebbi, where industrialization is minimal and poverty rates are high, these reforms could mean financial collapse. The shift towards a derivation-based revenue model, which rewards states generating significant local revenue, risks marginalizing states heavily reliant on federal allocations. This structural imbalance threatens to widen the gap between resource-rich and resource-poor states, intensifying regional disparities.

Nigerians are not oblivious to the historical irony of these reforms. During former President Goodluck Jonathan’s administration, Tinubu himself led the charge against similar tax proposals, warning of the economic hardship they would impose. Today, many wonder why the same individual now appears determined to enforce policies he once denounced.

Citizens are questioning the National Assembly’s role, accusing it of being a rubber stamp for the executive arm of government. If this perception persists, it could further erode public trust in democratic institutions.

While the reforms aim to modernize Nigeria’s tax system and boost federal revenues, their potential to destabilize states cannot be ignored. Policymakers must acknowledge this duality and adopt an inclusive, balanced approach. It is not enough to focus on revenue generation at the federal level; the unique challenges faced by individual states must be considered.

Northern states, in particular, require strategic investments in sectors such as agriculture, mining, and small-scale industries to reduce their reliance on federal allocations. However, these long-term measures cannot offset the immediate financial pressures many states will face if the reforms are implemented as proposed.

The rejection of the tax reforms by the Northern Governors underscores the deep divisions they could create. To avoid a fiscal collapse, President Tinubu and the National Assembly must engage in meaningful dialogue with state governments, economic experts, and other stakeholders. A collaborative approach is essential to ensure that the reforms address Nigeria’s revenue challenges without disproportionately burdening vulnerable states.

Additionally, addressing pressing issues such as insecurity and economic diversification should take precedence. Nigerians are questioning why the government is prioritizing tax reforms over resolving these critical challenges.

The introduction of these tax reforms, coupled with other controversial policies such as the removal of fuel subsidies and cuts to education and healthcare funding, has already strained public goodwill. Persisting with the reforms in their current form risks alienating northern voters, who are warning that this could mark the collapse of the APC’s influence in the region.

“No to Tax Reform Bills.” The administration must heed this warning and take a step back to reevaluate its approach. Imposing reforms that bring widespread hardship is both undemocratic and unacceptable.

The Tinubu administration must balance its revenue-boosting ambitions with the need to preserve national cohesion and equity. The survival of several states—and the future of the Nigerian federation itself—hangs in the balance. A measured, inclusive, and equitable approach to tax reform is not just desirable but essential.

The path forward requires genuine leadership: one that listens, learns, and acts in the best interest of all Nigerians, not just a select few. Anything less would be a disservice to the nation and a betrayal of its democratic ideals.

Write:- Bala Salihu Dawakin kudu Northern Bureau Chief Democracy Newsline 08060017934.

You Might Also Like

Former Kabba/Bunu Chairman, Moses Olorunleke, Extends Birthday Greetings to Hon. Femi Omoga Owoniyi

Democracy Newsline Newspaper Extends Warm Wishes to Uncle Justin Bello on 60th Birthday

Democracy Newsline Newspaper Extends Birthday Wishes to Chief Femi Owoniyi Omoga

Veteran, Justin Bello Celebrates Six Decades of Life

ARMTI Partners with Abia State Government, Launches South East Regional Office

Democracy Newsline December 11, 2024
Share this Article
Facebook Twitter Whatsapp Whatsapp Telegram Email
Previous Article Agih Micah PhD: A Journey of True Mentorship
Next Article GOVERNOR UMARU BAGO ATTENDS THE WEDDING RECEPTION OF HOUSE OF REPS MEMBER, SAIDU ABDULLAHI AND ZAINAB ABDULLAHI
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

about us

We influence 20 million users and is the number one business and technology news network on the planet.

  • Advertise

Find Us on Socials

© Foxiz News Network. Ruby Design Company. All Rights Reserved.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?