Governor Dauda Lawal of Zamfara State says some financially less-buoyant states may not survive if the tax reform bills before the National Assembly are passed and signed into law by President Bola Tinubu.
“Some states may not be able to survive so it is something that must be carefully studied so that we don’t hurt ourselves in the long run,” the governor said on Channels Television’s Politics Today programme on Tuesday.
“Well, the tax issue has a lot of components – there is the good aspect and there is the bad aspect. So, we are studying the situation so as also to advise our people on the way forward. It’s an ongoing process and we will continue with the engagement,” he said.
The new tax bills introduced by the Tinubu administration have been enveloped in widespread controversy and sparked scathing criticisms and stiff opposition from many including the 36 state governors under the aegis of the National Economic Council (NEC). The 19 governors in northern Nigeria have also unequivocally rejected sections of the bills.
Lawal, one of the governors in the north, said it would be difficult for many states to pay the N70,000 minimum wage if the tax reforms are implemented.
The governor said, “Reform in a system is inevitable and we should always expect reforms. However, in trying to do that, we also need to be careful not to be in a hurry to do something that will later hurt us.
“So, I believe we should carefully study the situation, and have a clear understanding and take a common stand.
“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 of the states in terms of what kind of inflows they have and invariably it may make it difficult for some states to be able to pay their salaries.”