Tension as 19 Northern Governors Pull Support for Tinubu

The escalating conflict between governors and the Federal Government underscores the intricate issues of resource control and regional fairness in Nigeria’s fiscal strategies. President Bola Tinubu’s proposed transition to a Derivation-based Model for Value Added Tax (VAT) distribution has sparked worries among governors, who claim it would disadvantage northern states and other less industrialized areas....CONTINUE READING>>>

Recently, governors gathered under the Northern States Governors’ Forum (NSGF) and released a statement after a crucial meeting in Kaduna, led by Gombe State Governor Muhammad Yahaya. The meeting included northern traditional leaders and military representatives, emphasizing the governors’ collective opposition to the proposed changes.

The forum expresses disappointment over the recent Tax Reform Bill submitted to the National Assembly, Yahaya stated while presenting the statement. “The proposals are detrimental to the North and other regions, particularly the suggested shift to a Derivation-based Model for VAT distribution.”At present, VAT is collected based on a company’s headquarters rather than the location where goods and services are consumed.

The governors argue that the proposed model would drastically reduce revenue distributed by the Federal Accounts Allocation Committee (FAAC), especially in northern states where Sharia law restricts the sale of alcoholic products.In their statement, the governors unanimously rejected the proposed tax amendments and urged National Assembly members to oppose any legislation that could harm their constituents’ welfare. “We demand fairness and equity in national policy execution,” they stressed. “No region should be overlooked or marginalized.

Despite their opposition, the governors affirmed their support for initiatives that foster national growth. “The Northern Governors’ Forum is not against any policies or programs that will contribute to the country’s development,” they stated.As Nigeria faces economic difficulties, the NSGF called for calm among citizens, reassuring them that both state and federal governments are working to ease the hardships faced by the people.