The Coalition of Northern Groups (CNG) has expressed its position on Nigeria’s ongoing tax reforms.
It commends the Nigerian Governors’ Forum (NGF) for advocating a more equitable Value-Added Tax (VAT) sharing formula while raising concerns about other controversial provisions in the proposed tax bills.
In a statement signed by its National Coordinator, Jamilu Aliyu Charanchi, and made available to Naija News, the group highlighted its advocacy efforts, which include town hall meetings and protests aimed at addressing the perceived adverse effects of the reforms.
Praise For Revised VAT Formula
The CNG applauded the NGF’s push for a revised VAT sharing formula, describing it as a welcome departure from the previously proposed structure.
Charanchi said, “The revised formula of 50% based on equality, 30% on derivation, and 20% on population is a step toward fostering unity and fairness.
“It ensures no region is left behind in Nigeria’s development trajectory.”
The group noted that the new formula is a significant improvement over the earlier proposal of 20% on equality, 20% on population, and 60% on derivation, which they said was lopsided.
As part of its advocacy, the CNG revealed that it has been conducting town hall meetings across Northern Nigeria to gather feedback from civil society organizations, stakeholders, and residents.
“These engagements aim to sensitize Nigerians on the bills and work on how best to address these issues collectively,” Charanchi added.
The Students Wing of the CNG has also staged protests across states, while state chapters of the coalition continue to engage stakeholders in their respective domains to galvanize public action.
Concerns Over Controversial Provisions
While lauding the revised VAT formula, the CNG expressed deep concern about other provisions within the tax reform bills that could have severe implications for ordinary Nigerians.
The CNG has the following prayers:
“That the CNGunequivocally vows to continue to mobilise against the defunding of TETFUND, NASENI, and NITDA as these critical institutions play pivotal roles in advancing education, innovation, and technological development in Nigeria.
“That the CNG also completely rejects taxing Family Wealth or Inheritanceas it unjustly burdens families, negate religious tradition and contradicts cultural values.
“That with soaring food inflation now at about alarming 40% which has made millions of people foodinsecure, wenot only reject any scintilla of thought that proposes an increase in VAT but proposed a reduction from 7.5% to 3.%. The coalition strongly warns against any attempt at increase given the prevailing harsh economic conditionsthat make life miserable for Nigerians.
“That this is a time that the federal government should encourage and support Small and Medium Enterprises (SMEs) rather than suffocating them with unnecessary taxes and exploitation.
“That the Coalition further rejected the proposed centralization of tax collection which would stop NigeriaCustoms Service from collecting excise duties and import VAT as well as make the new Nigeria Revenue Service (NRS) the sole collector of Royalties from the upstream oil sector.
“That the purported 13% of the taxes that are said to be paid forconsultancy services in the name of reform is unacceptable, as it appears to prioritize personal gains of select fewwho feed fart on our commonwealth over the collective good of the people.
“That the ball is in the court of the national assembly as all eyes are on them to be brave and stand firm to protect interests of the downtroddenjust as governors have courageously fought their battle which led to a new, fair and acceptable VAT formula.
“That we are categorical to all senators and members of the house of representatives particularly those from the North that are supporting the bills without recourse to amending the identified loopholes and anomalies or, being indifferent, is a crime against the people, to the people and for the people which we would not hesitate to mobilise the people to confront them at the appropriate time.”
The CNG reiterates its calls on legislators to ensure that all controversial aspects of the bills that are detrimental to Nigerians are thoroughly and carefully examined and expunged before considering any further action.
While monitoring the development closely, CNG reaffirms its commitment to opposing all anti-people policies that increase economic hardships for Nigerians. The coalition remains steadfast in advocating for policies that prioritize transparency, equity, and the well-being of citizens.
The CNG will continue to engage stakeholders, conduct sensitization programs, and mobilize Nigerians to eliminate all controversial areas in the proposed reforms that negatively impact the ordinary people.