Senator Shehu Sani: Proposed Tax Reform Could Bring Economic Gains for the North Despite Opposition

Former Kaduna Central Senator Shehu Sani has expressed that Nigeria’s proposed tax reform plan would ultimately benefit the Northern region, despite growing objections to the measure within the National Assembly. Concerns have been raised by Northern elites and some lawmakers, who argue that the reform might adversely affect the North if passed.

In October, President Ahmed Tinubu submitted an executive bill to the National Assembly, proposing four tax reform bills: the Nigeria Tax Bill, Tax Administration Bill, and Joint Revenue Board Establishment Bills. These measures have sparked considerable debate and skepticism, particularly among Northern representatives.

Senator Mohammed Ali Ndume of Borno South, a former Chief Whip, has been vocal in his criticism. He described the proposal as “ill-timed,” given Nigeria’s current economic struggles. “I can tell you that it will be dead on arrival. We don’t need to study the bill,” Ndume stated. He argued that, with widespread poverty and high costs of living, now is not the right time to introduce new taxes. “People can’t even afford what to eat. People are struggling to survive. Let people live first before you start asking them for tax,” he added.

In response, Shehu Sani countered Ndume’s stance, labeling him a “lazy politician” for opposing a bill he hasn’t read. Sani argued that the reform plan could provide significant economic advantages for the North, urging politicians to set aside sentiments and analyze the bill’s content. He noted, “There is a provision where companies are to pay value-added tax to the host state instead of sending it to a single account. It’s economically beneficial and fair to all parts.”

Sani emphasized that the tax reform proposal aims to simplify tax administration, streamline enforcement, and curb corruption, especially around tax waivers granted to influential business groups. “The Bill will actually generate and safeguard more revenue for the country and the States. There is nowhere in the document where any region will be shortchanged or taxes will be increased or jobs will be lost,” he stated.

He added that the reforms represent a bold step towards modernizing Nigeria’s tax system and increasing government revenue—a move that only a determined administration could execute. Sani argued that the reforms would specifically target corporate entities that often evade taxes or benefit from excessive tax breaks.

In light of opposition from some Northern state governors, Sani advised that the states could hire consultants to thoroughly review the measure if they have concerns. He warned that blocking the reforms could disrupt the economy, stressing the need for governors to approach the proposal constructively.