Kebbi CNG Protests Tax Reform Bill, Says It Threatens Education and Economy

By Umar Faruk Birnin Kebbl 

The Kebbi State Chapter of the Coalition of Northern Groups (CNG) has expressed strong reservations about the proposed Tax Reform Bill currently before the Nigerian Senate. Speaking at a one-day town hall meeting in Birnin Kebbi, Comrade Mansur Isah Guruza, Coordinator of CNG Kebbi State Chapter, emphasized that the bill, if passed, would have far-reaching adverse effects on the Northern region, including Kebbi State.

"The proposed reform's emphasis on derivation appears to favor states with higher VAT-generating activities, predominantly in the South," Guruza said. "This shift could significantly reduce the revenue shares allocated to Northern states, where economic activities are comparatively lower."

Guruza highlighted three key concerns with the proposed bill: the disproportionate impact on Northern states, the potential for increased economic disparity, and the lack of transparency and data-driven decision making. He urged the government to ensure that any tax reform promotes fairness and equity among all states.

"The CNG Kebbi State Chapter is demanding a transparent and equitable revenue-sharing formula, data-driven policy making, and a consultative approach to the reform," Guruza added. He also called for a downward review of the 7.5% Value Added Tax (VAT) to 3% to alleviate the burden on Nigerians.

The town hall meeting was attended by distinguished guests and stakeholders, who engaged in a critical discourse on the implications of the proposed Tax Reform Bill. The CNG Kebbi State Chapter urged the Nigerian Senate to pause consideration of the bill and engage in further consultations with stakeholders.

Comrade Jamilu A. Charanchi, CNG National Coordinator, delivered a thought-provoking opening remark. He emphasized the importance of Nigerians expressing their opinions on policies detrimental to their livelihood, particularly the controversial Tax Reform Bills.

"I disagree with the Governors Forum's 7.5% call, instead advocating for a 3% review to ensure citizens' survival," Charanchi said. He also criticized the phasing out of organizations like NITDA, NASENI, and TETFUND, which have positively impacted Nigerian tertiary institutions.

The Chairman of the Coalition of Civil Society Organizations, Kebbi State chapter, Comrade Ibrahim Ngaski aligned with Charanchi's submissions and promised further consultations and educating citizens on national issues.

"I urge citizens to vote for good and God-fearing leaders into public offices, rather than those prioritizing personal interests," Ngaski said.

Malam Abdu Muhammad, the chairman of the occasion, kicked off the event with some insightful remarks. He applauded the previous speakers and echoed their call for wider consultations to help citizens grasp the implications of the tax reform bills.

"I encourage participants to engage respectfully and share their thoughts, assuring everyone that they'll have the opportunity to contribute meaningfully to the discussion," Muhammad said.

A paper was presented by Professor Ahmadu Umar Sanda of the Department of Economics, Usmanu Danfodiyo University Sokoto, titled "The pains and gains from economic reforms in developing countries: lessons and policy options for Nigeria." The paper was delivered at the town hall meeting organized by the Coalition of Northern Groups (CNG) at Shagalinku Hotel, Birnin Kebbi on Tuesday, 28th January 2025.