CNG Urges Suspension of Tax Reform Bills, Calls for Broader Consultation

Folalumi Alaran in Abuja

The Coalition of Northern Groups (CNG) has raised concerns about the proposed Tax Reform Bills by President Bola Ahmed Tinubu’s administration, calling for their immediate suspension to allow for broader stakeholder engagement.

Speaking at a press conference in Abuja, CNG National Coordinator, Comrade Jamilu Aliyu Charanchi, warned that the reforms could aggravate socio-economic challenges already affecting Nigerians.

“We understand the government’s need to enhance revenue generation, but these reforms, in their current form, pose significant threats to the education, technology, and industrial sectors,” Charanchi said. “The proposed changes will not only impact development agencies like TETFUND, NITDA, and NASENI but also place an undue economic burden on struggling Nigerians.”

Charanchi noted that under the reforms, funding for critical institutions such as the Tertiary Education Trust Fund (TETFUND) and the National Agency for Science and Engineering Infrastructure (NASENI) would be drastically reduced or eliminated over time. “TETFUND has been instrumental in advancing education in Nigeria. Phasing it out would destabilize the public tertiary education system, affecting millions of students and academics,” he explained.

Similarly, the National Information Technology Development Agency (NITDA), which currently drives digital inclusion, faces a complete withdrawal of funding by 2026. “This is particularly concerning for rural communities already grappling with limited access to technology,” Charanchi added.

The group also criticized the proposed Value-Added Tax (VAT) derivation formula, which allocates 60% of revenue to states hosting corporate headquarters. “We are asking for transparency. If the government believes this formula is fair, it must publish data to justify these changes,” Charanchi stated.

The planned VAT hikes, projected to reach 15% by 2030, were also flagged as potentially harmful to vulnerable households. “While essential goods are exempted, Nigeria’s unregulated market system often undermines such measures, leading to increased hardship for the poor,” he noted.

Charanchi expressed concern over the proposed defunding of the North East Development Commission (NEDC), which receives 3% of VAT revenue to support rebuilding efforts in the insurgency-affected region. “Removing VAT as a funding source for the NEDC will jeopardize rehabilitation projects vital to the region’s recovery,” he emphasized.

The CNG urged the government to reconsider the reforms, calling for a more inclusive approach to policy-making. “We believe these bills should be suspended until all stakeholders, including civil society and regional representatives, have been thoroughly consulted,” Charanchi said. “The goal should be a tax system that promotes equity, transparency, and sustainability.”

While commending the Northern Governors Forum, the National Economic Council, and members of the National Assembly who have voiced their reservations about the bills, Charanchi encouraged others to join in rejecting the proposed reforms. “This is not just about the North or any particular region; it is about ensuring a fair and inclusive economic future for all Nigerians,” he concluded.

The CNG called on the government to prioritize transparency and equity, urging that any tax reform be informed by data-driven insights and public consensus. “A policy that affects every Nigerian should not be rushed; it must be thoroughly examined and debated to achieve the best outcomes for the nation,” Charanchi stated.