Senator Mohammed Ali Ndume has expressed opposition to the proposed tax reform bills under President Bola Ahmed Tinubu’s administration, warning that they could worsen Nigeria’s economic challenges, SAVANNAH NEWSNOW REPORTS.
Ndume cautioned that implementing these reforms now could exacerbate Nigeria’s severe economic challenges, arguing that the timing could put additional financial pressure on citizens and businesses, and urging the government to reassess its approach in light of the current economic situation.
“These reforms may worsen the current economic hardship. I insist that the tax reform bills be withdrawn for broader consultations with critical stakeholders, including state and local governments and the private sector,” Ndume said.
The lawmaker suggested that the Federal Inland Revenue Service (FIRS) should prioritize broadening the tax base and enhancing collection efficiency over imposing additional taxes.
He also advocated for greater oversight of commercial banks, pointing out that their substantial annual profits should result in higher tax payments.
Ndume emphasized the need for structural reforms within the government, noting the imbalance in Nigeria’s budget allocation.
“Our personnel and overhead expenditure for 2024 accounts for 50 to 60 per cent of the total budget. Yet, as we approach the end of the year, only 20 per cent of the capital budget has been implemented, while recurrent expenditure has been fully exhausted,” Ndume revealed.
He argued that addressing inefficiencies in government operations, rather than imposing additional taxes, would yield better outcomes for the country’s economy.
Rejecting regional stereotypes, Ndume reaffirmed the North’s role as a contributor to national development, countering claims of dependency.
“The North is an asset, not a liability. All states and zones need one another for socio-economic survival and development,” he asserted.
Ndume emphasized the importance of prioritizing and timing reforms correctly to gain public support and ensure their effectiveness.
“Even with reforms, you must prioritize, time them correctly, and secure the buy-in of Nigerians because this is a democracy – government of the people, for the people, and by the people,” he concluded.
