Northern Leaders Fault Tinubu for Nigeria’s Economic Woes, Jittery over Tax Reform Bills

The Arewa Consultative Forum (ACF) has expressed dissatisfaction over the economic policies of President Bola Tinubu, blaming it for the worsening conditions in northern Nigeria.

The ACF called on President Tinubu to take immediate action to address the pressing issues of insecurity, education, and economic development in the region.

ACF’s National Publicity Secretary, Prof Tukur Muhammad-Baba, in a communiqué personallt signed, expressed dissatisfaction with the current economic policies, which the forum claimed have amplified hardship in the country.

“Despite the dire economic conditions in Arewa, the policies of the current Federal Government have continued to worsen the situation, showing little sensitivity to the precarious existential challenges faced by the Arewa people.

“Succinctly stated, economic reforms, while indeed desirable, should not impoverish the same people they are meant to serve; the people may not be alive to reap the putative benefits.

“In view of the above, the meeting resolved as follows: calls on the Federal Government under the leadership of President Bola Ahmed Tinubu to review, reassess, reevaluate and re-order the direction of its economic policies with a view to giving it the needed human face, the ACF said.

Tinubu’s Tax Reform Bill

Similarly, the Tinubu led-Federal Government’s proposed Tax Reform Bill seeks to introduce a consumption-based Value Added Tax (VAT) model has been strongly condemned by the northern leaders.

The plan, which aims to address long-standing revenue allocation disparities, has ignited national debate over its potential impact on regional equity and economic development.

During a House of Representatives session, Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), explained the rationale behind the reform.

“VAT is a consumption tax,” he stated. “Its revenue should reflect where goods and services are consumed, not where transactions are recorded.”

Currently, states like Lagos dominate VAT collections, accounting for 42% of national revenue, followed by Rivers (16%) and the Federal Capital Territory (9%).

Meanwhile, less industrialised states such as Borno and Bauchi receive less than 0.5%. Under the new model, revenue allocation would prioritise population-based consumption over production hubs.

Supporters, including Arabinrin Aderonke Atoyebi, a media aide to Dr. Adedeji, believe the reform will empower underserved states.

“This change could enable these regions to invest in critical areas like healthcare, education, and infrastructure,” she remarked. Advocates argue that equitable distribution will foster national unity and sustainable growth.

Dr. Adedeji maintains that the reform aligns with President Tinubu’s Renewed Hope Agenda, promising a fairer Nigeria. “This is about creating a nation where every region can thrive,” he said.

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