North’s leaders reject VAT plan, okay livestock reform, security

Political leaders and traditional rulers of the North have rejected the Value Added Tax (VAT) sharing proposal in President Bola Ahmed Tinubu’s Tax Reform Bill being considered by the National Assembly.

The leaders expressed support for the livestock reform programme which has led to the creation of the Livestock Development Ministry.

They are also delighted with the gains made in the battle against bandits and terrorists in the region in recent times.

They made these positions known yesterday after a meeting of the Northern States Governors’ Forum (NSGF) and the traditional rulers in the three geo-political zones – Northwest, Northeast and Northcentral – led by Sultan of Sokoto Sa’ad Abubakar III.

The President a few days ago sent an Executive Tax Reform Bill to the National Assembly for consideration and passage.

The comprehensive outlay of tax plans, billed to go into effect from January 1, is targeted at taxing the upper class more than the middle and lower classes.

The VAT is planned to be imposed on luxury items and increased to 15 per cent. Tax on items is currently 7.5 per cent.

But the governors and the Northern States Council of Emirs and Chiefs said the new arrangement on tax sharing is against the interest of the North.

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Gombe State Governor Inuwa Yahaya, chair of the NSGF, who read the communiqué of the meeting held in Kaduna, said: “Forum notes with dismay the content of the recent Tax Reform Bill that was forwarded to the National Assembly.

“The contents of the Bill are against the interests of the North and other sub-nationals especially the proposed amendment to the distribution of VAT to a derivation-based model.

“This is because companies remit VAT using the location of their headquarters and tax office and not where the services and goods are consumed.

“In view of the foregoing, the Forum unanimously rejects the proposed Tax Amendments and calls on members of the National Assembly to oppose any bill that can jeopardise the well-being of our people.

“For the avoidance of doubt, the Northern Governors Forum is not averse to any policies or programmes that will ensure the growth and development of the country.

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“However, the Forum calls for equity and fairness in the implementation of all national policies and programmes to ensure that no geopolitical zone is short-changed or marginalised.”

The Forum also discussed a wide range of issues affecting the Northern Region, including insecurity, cost of living crisis and electricity supply challenges.

It called on the Federal Government to immediately consider building additional transmission lines and diversify the energy supply to better connect the region.

The communiqué of the meeting is as follows:
•“Forum extends its deepest sympathies to the victims of the recent flood disasters in Maiduguri and other parts of the North, as well as to the families affected by the tragic tanker explosion in Jigawa State.

•“The Forum equally commiserates with other victims of terrorism, banditry and similar criminal activities in the North and Nigeria at large and stand in solidarity with them during these difficult times.

•“We agreed to continue to work with the Federal Government and relevant agencies to provide the necessary support and relief to those affected.

•“Forum emphasises that traditional institutions are critical in the quest for lasting peace and security in the region.

•“Forum also acknowledged their commitment to bridging the gap between the Government and the people. Forum advocates for increased roles for the traditional institutions to maximise cooperation with security agencies in the fight against kidnap for ransom, banditry, cattle rustling, communal clashes, farmers/herder clashes and other forms of criminality.

•“Forum acknowledges the recent gains made against criminals, especially the elimination of bandits and terror leaders.

•“However, we resolved to sustain these gains to ensure lasting peace and stability in the sub-region.

•“Forum commend the Federal Government and security agencies for their commitment in ensuring that our communities are safe and secure.

•“Particularly, we commend the untiring commitment of the Chief of Defence Staff General C. G Musa whose professionalism and innovative approach have made a difference in the security architecture of the Country at large.

•“Nevertheless, more needs to be done to address pockets of challenges that abound in the Northern Region.

•“With the recent ‘End Bad Governance’ protests that took place in August, the Forum resolved to scale up efforts to tackle the root causes of youth restiveness by investing in education, skills development, job creation and pathways for the youth to channel their energy into productive ventures, thereby reducing their vulnerability to crime and social vices.

•“Forum resolves to call on the Federal Government and relevant agencies to urgently address the current electricity power blackout affecting most of the Northern states due to vandalisation of electricity transmission infrastructure.

•“This matter not only underscores the vulnerability of critical infrastructure but also the need to build additional transmission lines and diversify our energy supply so as to better connect our region and improve our energy resilience.

•“Forum agrees that Northern Nigeria holds immense agricultural potential, which, if fully harnessed, can significantly alleviate hunger and boost economic growth.

•“To achieve this, we resolved to provide adequate support to our farmers, including access to financing, modern farming techniques and infrastructure such as roads and irrigation systems.

•“Agriculture should not only be seen as a means to feed our people but also as a catalyst for industrialisation and job creation across the region.

•“That can be achieved through the re-industrialisation of the North, especially by reviving the textile value chain and development of other agro-allied industries.

•“Forum commends His Excellency, the President and Commander-In-Chief of the Armed Forces of the Federal Republic of Nigeria for the reform initiative in the livestock sub-sector and agreed to provide the necessary political will and commitment to ensure the success of the Federal Government livestock development initiatives.

•“The Forum also agreed to sustain engagement and cross-fertilisation of ideas with the Presidential Livestock Reforms Implementation Committee to achieve greater results.

•Forum acknowledges the fact that climate change has greatly affected our environment resulting in the recent flood incidents in many parts of the North and therefore resolved to partner with the Federal Government and other stakeholders to build irrigation infrastructure like canals and waterways to divert excess water and channel them towards irrigation activities, thus enhancing rural livelihoods and safeguarding food security.

•“Forum agrees to support and key into any initiative aimed at addressing the challenges of out-of-school-children and improving educational outcomes in the sub-region.

•“On the present economic hardship affecting the Country, the Forum is appealing to all citizens to remain calm, as the states and Federal Government are working hard to implement measures that will cushion the effects of the hardship.”

In attendance were governors Uba Sani (Kaduna), Babagana Zulum (Borno), AbdulRahman AbdulRazaq (Kwara), Dauda Lawa (Zamfara), Bala Mohammed (Bauchi), Abdullahi Sule (Nasarawa), and Ahmadu Fintiri (Adamawa).

Also present were the Sultan Abubakar III; Shehu of Borno, Umar El-Kanemi; Emir of Zazzau, Ahmad Nuhu Bamali; Ohinoyi of Ebira land, Alhaji Ahmad Tijani; Etsu Nupe, Alhaji Yahaya Abubakar; Emir of Kazaure, Najib Husaini Adamu, and Emir of Bauchi, among others.