The Presidency has called on Bauchi State Governor Bala Mohammed to retract his recent comments, describing them as “inflammatory” and not in line with the constructive dialogue needed between state and federal governments.
In October 2024, President Tinubu introduced a set of tax reform bills aimed at overhauling the country’s tax system. The bills—comprising the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill—are currently being reviewed by the National Assembly.
The proposed reforms include raising the Value Added Tax (VAT) rate from 7.5% to 10% by 2025 and imposing a 5% excise duty on telecommunications services. While the reforms aim to simplify the tax system, improve compliance, and boost government revenue, they have sparked controversy, particularly in the northern region.
Governor Mohammed had criticized President Bola Tinubu’s Tax Reform Bill, calling it “anti-northern” and warning that the northern region would “show its true colours” if the policies continued. He argued that the reforms could lead to economic difficulties and threaten national unity, urging the federal government to reconsider and adopt more inclusive policies.
In response, the Presidency urged Governor Mohammed to withdraw his confrontational remarks and focus on productive dialogue regarding concerns over the Tax Reform Act. Tinubu’s Special Adviser on Media and Public Communication, Mr. Sunday Dare, emphasized that Mohammed’s comments did not reflect the collective opinion of Northern Nigeria and noted the region’s desire for collaborative governance with the Federal Government. Dare stressed that rather than making threats, Governor Mohammed should direct his efforts toward implementing poverty alleviation programs and ensuring the transparent use of federal allocations.
“The North, like all other regions, seeks to engage constructively with the Federal Government to address the nation’s challenges,” Dare said. “Governor Mohammed’s statement, particularly the remark ‘We will show President Tinubu our true colour,’ is concerning and does not support the dialogue needed between states and the federal government.”
The Presidency also pointed out that Bauchi State had received a substantial N144 billion in federal allocations under the current administration, marking one of the highest increases in federal disbursements. This, coupled with special interventions like a N2 billion food security fund for each state, was aimed at helping address developmental challenges.
Dare further highlighted that the Tax Reform Act is designed to benefit states by streamlining taxation systems, which would reduce the burden on small businesses in Bauchi. The reforms also aim to improve revenue collection through digitalization, offering protections for informal sector workers and focusing on agricultural businesses, which are vital to Bauchi’s economy.
“These reforms open new doors for investment by creating tax incentives and capacity-building opportunities for state revenue services,” Dare added. “Rather than opposing these efforts, Governor Mohammed could benefit from implementing sound fiscal management systems, developing state-specific tax incentives, and investing in agricultural value chains to further drive development.”
The Presidency also urged public officials to prioritize national unity over regional divides, emphasizing that Nigeria’s progress depends on leaders focusing on national development, security, and economic growth. “Constructive dialogue, efficient resource management, and national cohesion are key to moving Nigeria forward,” Dare concluded.
Critics argue that changes to the VAT distribution formula could negatively impact less economically developed northern states, exacerbating regional disparities. Despite the criticisms, the Presidency has stated that consultations will continue, and the government remains committed to ensuring that the reforms are equitable and beneficial to all regions.
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