How to turn Tinubu tax reforms into an opportunity for Northern Nigeria
By Calvin Anadio Lawan
The Tinubu administration proposed tax reforms have sparked plenty of debates across Nigeria. While it’s good that people are sharing their concerns and criticisms (this is healthy for democracy), we also need to take a step back and see the opportunities these reforms present, especially for Northern Nigeria.
One key point is that the reforms move us closer to decentralization. By basing VAT more on consumption, every state’s level of activity will determine how much revenue it generates. This is a soft push toward restructuring, a topic we’ve been discussing for years. It might not be the full restructuring some are asking for, but it’s a step in the right direction.
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Secondly, these reforms shift the focus from monetary policy to fiscal policy. For too long, we’ve relied heavily on the Central Bank to manage our economy. Now, with these tax reforms, the fiscal side of governance is being forced into the spotlight. This is our chance to ensure state governments do their part in driving economic growth.
Third, some people claims the reforms introduce a progressive tax system, where the rich and big businesses pay more taxes while small companies and people earning less are treated more favorably.
This approach is fair and ensures that the burden of development is not placed on those who can’t afford it.
Now, here’s the challenge for the Northern Nigeria How do we position ourselves to benefit from these reforms?
For too long, many Northern states have depended almost entirely on Federal Allocations. Governors often focus on projects that don’t generate revenue or significantly improve people’s lives. The result? A cycle of dependency that holds the North back.
This has to change. The reforms are a wake-up call for our leaders in the North to stop resisting and start strategizing. If we continue to avoid exploring our untapped potentials, agriculture, solid minerals, tourism, and even renewable energy, we’ll remain stuck in the past while other regions move forward.
It’s also worth noting that the South West, South South, and South East states have already okayed the reforms. Even a sizable number of Northern legislators are being influenced to support the bill as we speak.
This makes it fortuitous for us to continue protesting it instead of seizing the moment to prepare for a future where every state must stand on its own economic feet.
Instead of asking for the tax reforms to be halted, let’s embrace them as a challenge to rethink how we run our states. Can our leaders begin…
1. Invest in revenue-generating projects: Focus on industries that can grow the economy, like food processing, mining, and renewable energy.
2. Support small businesses: Create policies and infrastructure that make it easier for entrepreneurs to thrive.
3. Encourage fiscal discipline: Prioritize projects that yield long-term economic benefits, not flashy ventures with no lasting value.
4. Educate and empower our people: With a more skilled and educated workforce, we can attract investments and boost productivity.
The time for excuses is over. This is our chance to break free from dependence on federal handouts and build a more self-reliant, prosperous North. Yes, change is hard, and growth may be uncomfortable, but as the saying goes, “You can’t make pounded yam without crushing some yams.”
Let’s stop asking for things to stay the same and start demanding the changes that will secure a better future for Northern Nigeria. The reforms may feel like a disruption, but disruptions often bring the opportunities we’ve been waiting for.
Lawan writes from Yola.
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