ABUJA: The newly proposed tax bill in Nigeria has sparked strong opposition from leaders and stakeholders in Northern Region,, who argue that it will impose a “crushing burden” on the already struggling region. The bill, which seeks to increase tax rates and introduce new taxes, has been met with widespread concern, with critics warning that it will exacerbate the economic challenges facing Northern states.
Northern Nigeria, home to many of the country’s poorest states, has long faced socio-economic difficulties, including high levels of unemployment, poverty, and inadequate infrastructure. Many Northern leaders argue that the new tax bill would only worsen these challenges by further squeezing the incomes of citizens in a region already hit hard by economic hardship.
One of the key points of contention is the proposed increase in Value Added Tax (VAT), which would directly affect everyday goods and services, disproportionately impacting low-income families.
Northern Nigeria, which relies heavily on agriculture and informal sectors, fears that the tax hike will put additional strain on farmers, traders, and small businesses, many of whom are already struggling to survive.
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Raising taxes in a region where the majority of people live below the poverty line is not only unfair, it’s also counterproductive, said a prominent Northern political leader. “The government should be focusing on policies that will stimulate growth and reduce poverty, not adding more financial pressures on the people.
Another major concern is the limited economic diversification in the North compared to the more industrialized South. Northern Nigeria remains largely dependent on agriculture, which is vulnerable to climate change, as well as oil revenue, which has been fluctuating in recent years. Many Northern leaders believe that the tax bill could stifle investment in key sectors like agriculture and education, which are essential for the region’s long-term development.
In addition, critics argue that the bill fails to take into account the regional disparities in economic development and living standards. While the South, particularly the Lagos and oil-rich regions, benefits from higher incomes and a more diversified economy, the North remains largely dependent on federal allocations and agricultural output.
The new tax proposals have also been criticized for their lack of inclusivity and regional consultation. Many Northern representatives feel that they were not adequately consulted during the drafting of the bill and that its provisions fail to reflect the realities of their economic situation.
In response to the widespread opposition, Northern lawmakers are calling for a comprehensive review of the bill to ensure that it does not unfairly burden their region. They are urging the government to prioritize policies that will stimulate job creation, improve infrastructure, and support the development of key sectors like agriculture and education in the North.
As the debate over the new tax bill continues, the opposition from Northern Nigeria is likely to remain a major point of contention, with many calling for a more balanced and equitable approach to tax reform that takes into account the economic challenges faced by different regions of the country.
