“Economic hardship may worsen if Tinubu’s tax reform bill scales through” – APC senator

Mohammed Ali Ndume, senator representing Borno South, has again rejected the proposed tax reform bills under President Bola Ahmed Tinubu’s administration, warning that their implementation could worsen the already dire economic challenges faced by Nigerians.

Speaking in a statement on Sunday, Ndume, a senior member of the All Progressives Congress (APC), criticized the timing of the reforms, urging the government to reconsider its approach.

“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 I insist that the tax reform bills be withdrawn for broader consultations with critical stakeholders, including state and local governments and the private sector,” Ndume said.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 argued that the Federal Inland Revenue Service (FIRS) should focus on expanding the tax net and improving collection efficiency rather than introducing additional taxes.

“The FIRS should concentrate on expanding the tax net and collecting more revenue. Additionally, there must be greater accountability and transparency in the management of public funds,” he stated.

He also called for increased scrutiny of commercial banks, emphasizing that their significant annual profits should translate into higher tax contributions.

Ndume further stressed the need for structural reforms within the government, highlighting 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.