CurrentReport Blog Governor Dauda Lawal of Zamfara State has expressed concerns that some financially weaker states may struggle to survive if the proposed tax reform bills are passed into law. Lawal shared his views during an interview on Channels Television’s Politics Today on Tuesday.
The tax reform bills, introduced by President Bola Tinubu’s administration, include the Nigeria Tax Bill 2024, Nigeria Tax Administration Bill 2024, Joint Revenue Board of Nigeria (Establishment) Bill 2024, and the Nigeria Revenue Service (Establishment) Bill 2024. However, these bills have faced strong opposition from northern governors, the National Economic Council (NEC), and other regional groups.
Governor Lawal highlighted the potential economic strain on states, particularly regarding the implementation of the proposed N70,000 minimum wage. He explained:
“Some states may not be able to survive, so it is something that must be carefully studied to ensure we don’t hurt ourselves in the long run.”
Lawal also noted that the bills could disrupt state revenues due to changes in derivation principles and tax allocations.
“There is a component of it that talks about derivation, and definitely, if we are to go by it, it is going to affect some states in terms of what kind of inflows they have,” he added.
The Tinubu administration’s tax reforms aim to overhaul Nigeria’s tax system and boost revenue collection. However, critics argue that the bills could exacerbate regional inequalities and worsen financial challenges for less buoyant states.
