Tax Bills: The Presidency Tells Governor Bala Mohammed to Stop Threatening Tinubu

In October 2024, President Tinubu introduced a series of tax reform bills to the National Assembly to overhaul Nigeria’s tax system. The Bauchi State Governor, Bala Mohammed, threatened President Tinubu over these reforms, calling them “inflammatory” and suggesting they could lead to economic setbacks and favor one state over others. He warned that the northern region might “show its true colors” if the policies continued.

The Presidency responded, urging Governor Mohammed to retract his confrontational remarks and engage in productive dialogue with the Federal Government (FG) regarding any concerns about the Tax Reform Act. The Presidency emphasized that Mohammed’s views do not represent the entire northern region, which seeks collaborative governance and constructive engagement.

The Presidency highlighted that Bauchi State has received significant federal allocations, including N144bn and a N2bn special intervention fund for food security. They argued that the reforms, which include increased federal allocations and removing fuel subsidy compensation payments, benefit all states, including Bauchi.

Key provisions of the tax reform bills include increasing the Value Added Tax rate from 7.5% to 10% by 2025, with further increments planned, and imposing a 5% excise duty on telecommunications services. The reforms aim to streamline tax administration, enhance revenue generation, and support state-level development through tax incentives and capacity building.

The Presidency stressed the importance of unity and collaboration in addressing Nigeria’s challenges and urged public officials to prioritize the collective good over regional or political interests. They called for constructive dialogue, efficient resource management, and a commitment to national unity to achieve shared goals of development and progress.