The Bauchi State Chamber of Commerce, Industry, Mines and Agriculture (BACCIMA) has vehemently rejected the proposed Tax Reform Bill currently under consideration by the National Assembly. The Chamber aligns itself with the stance taken by Bauchi State Governor Bala Mohammed, who criticized the bill as biased in favor of a particular region of the country, a sentiment echoed by other northern governors, traditional rulers, and the National Economic Council. BACCIMA President Aminu Danmaliki echoed these concerns, stating that the bill is detrimental to the northern region and urging national leaders to oppose its passage. A core point of contention is the proposed reallocation of Value Added Tax (VAT) revenue. The initial proposal, which has since been revised due to public pressure, suggested that the federal government would retain a significant portion of VAT revenue, with a smaller share going to the areas where goods are produced, leaving consumers, the ultimate payers of VAT, with minimal benefit. BACCIMA argues that established global practice dictates that VAT revenue should primarily benefit the regions where consumers reside and make purchases, not where production occurs. The Chamber commends Governor Mohammed for his patriotic call for President Tinubu to reconsider these potentially disruptive tax reforms.
The Coalition of Northern Groups (CNG), Students-Wing, also expressed its complete rejection of the proposed Tax Reform Bill, characterizing it as a calculated attempt to sabotage the educational sector. National Coordinator Hassan Adamu, speaking at a press conference, asserted that the bill seeks to undermine existing educational institutions and erase any progress made in the sector. He warned that Nigerian students would fiercely resist the bill’s implementation. According to Adamu, the bill targets crucial national institutions supporting tertiary education infrastructure, essentially condemning these institutions to decline. A key concern is the potential impact on the Tertiary Education Trust Fund (TETFund), which provides vital funding for research, infrastructure, and staff development.
The CNG Students’ Wing foresees the gradual depletion of TETFund resources, ultimately leading to its extinction by 2025 if the bill is enacted. The proposed shift in funding towards the Nigerian Education Loan Fund (NELFUND), which supports student loans, is viewed with suspicion. The bill proposes incrementally increasing NELFUND’s share of certain levies, reaching 100% by 2030. The students’ group fears that this shift will prioritize student loans over critical investments in infrastructure and innovation, potentially saddling future generations with unsustainable debt. Furthermore, they argue that increased reliance on student loans could incentivize public tertiary institutions to raise tuition fees, effectively privatizing education and making it inaccessible to the masses.
The CNG Students’ Wing contends that the Tax Reform Bill represents a misguided approach to educational funding, prioritizing short-term loan programs over long-term investments in infrastructure and innovation. They believe that this approach will ultimately harm the educational system and burden students with excessive debt. Their stark warning paints a picture of public tertiary institutions transformed into revenue-generating entities, gradually moving towards privatization and ultimately becoming out of reach for most Nigerians. This shift, they argue, will create a generation burdened by debt, mirroring the nation’s own struggle with indebtedness, and hindering their ability to contribute meaningfully to the economy.
The core argument against the Tax Reform Bill, as presented by both BACCIMA and the CNG Students’ Wing, centers on its potential for detrimental long-term consequences. BACCIMA emphasizes the bill’s deviation from established global practices regarding VAT distribution, arguing that it unfairly penalizes consumers and potentially disadvantages the northern region. The CNG Students’ Wing, on the other hand, focuses on the bill’s perceived attack on the educational sector, warning of the potential collapse of TETFund and the rise of a debt-ridden generation of students. Both groups call for a thorough review and amendment of the bill before its passage, emphasizing the need for wider consultation and a more equitable approach to tax reform.
The call for a reassessment of the Tax Reform Bill is grounded in concerns about its potential for economic instability and social inequity. BACCIMA’s focus on the VAT reallocation highlights the potential for regional disparities and the unfair burden placed on consumers. The CNG Students’ Wing’s concerns about the future of TETFund and the rise of student debt underscore the potential for long-term damage to the educational sector and the economic prospects of future generations. Both groups advocate for a more inclusive and considered approach to tax reform, one that prioritizes long-term sustainability and equitable distribution of resources. Their united opposition to the bill signals a growing unease with its potential ramifications and a demand for greater transparency and dialogue in the legislative process.
In conclusion, the opposition to the Tax Reform Bill in Bauchi State reflects broader national concerns about the direction of economic policy. The BACCIMA and CNG Students’ Wing represent distinct but interconnected interests, highlighting the potential for the bill to exacerbate regional disparities and undermine vital public institutions. Their shared call for a more equitable and sustainable approach to tax reform underscores the need for a broader national conversation about the long-term economic and social implications of this proposed legislation. The arguments presented by both organizations raise serious questions about the bill’s potential to create a more unequal and unstable future for Nigeria, urging lawmakers to reconsider its provisions and prioritize the well-being of all citizens.
