Gombe Economist: Tax Reforms Provide Opportunities, Not Anti-North

An economist, a lecturer at Gombe State University, Dr. Nigel Yusufu Bachama, has refuted claims that the proposed Tax Reform Bill before the National Assembly is biased against northern states.

He described the reforms as a critical opportunity for states in the North to reassess their economic strategies and develop sustainable revenue-generation methods.

Speaking to Voice of Nigeria, Dr. Bachama emphasized the potential benefits of the reforms for the entire nation, urging Northern states to explore the bills thoroughly, highlighting their potential to drive economic growth by leveraging local resources and industries.

Harnessing Resources for Development
Dr. Bachama pointed to the abundance of natural resources and fertile land in the North as untapped opportunities.

Using Gombe as an example, he advocated for the exploration and utilization of resources like uranium for the state’s benefit.

“I can assure you states will develop something they will use. If there is uranium, as we are being told in Gombe, we’ll make sure that this uranium is being mind and harnessed for the good of Gombe. That is why we say necessity is the mother of invention. That is what we need,” said Dr. Bachama.

He called for states to be economically self-reliant, stressing that such independence would collectively propel Nigeria toward greatness.

Investment in Infrastructure

The economist urged northern leaders to channel resources into critical infrastructure such as schools, hospitals, roads, and electricity.

This, he said, would empower communities and ensure the judicious use of funds generated through the proposed reforms.

Dr. Bachama also encouraged states to reduce reliance on imports by producing essential goods locally, especially grains, to enhance food security and economic stability, as well as encourage export.

Tax Reforms

Describing the tax reforms as long overdue, Dr. Bachama explained their key components, including unified taxation, tax exemptions for low-income earners and small businesses, and incentives for exporters.

“That means food that we consume, for instance, rice, tax on rice will go down. And then export, whenever you are exporting something, there is no tax. That means you are promoting export, so that we get more revenue. Now look at it essential commodities like food and so on, they’re not to be taxed. If there not to be taxed, that means that you and I will benefit, other will benefit which is good for everybody in which there is no exemption on that because if Dangote and I hates rice, we will all be exempted which is very good for us. But unfortunately, people are making noise and so on essential commodities and then if you are an exporter, you are being encouraged to export because you will not be taxed,” said Dr. Bachama.

He noted that the reforms would streamline multiple taxes, simplify revenue collection, and increase the share of taxes returned to the states.

States Revenue Generation

Dr. Bachama highlighted how the reforms would enhance states’ financial autonomy. Using Value Added Tax (VAT) as an example,

“Whatever VAT is generated in Gombe, about 80% will be returned to the state and its local governments. This reduces reliance on federal allocations,” Dr. Bachama said.

Public concerns

He attributed skepticism about the reforms to misinformation and urged the public to seek clarity from economists.
Dr. Bachama also stressed the need for enlightenment campaigns to ensure acceptance and understanding of the reforms’ benefits.

He called on state governments to create favorable conditions for investment, saying such efforts would boost local economies and improve the overall quality of life.

“By providing an enabling environment for businesses, states can attract investments and foster economic growth,” he said.

Dr. Bachama underscored the potential of the tax reforms to transform Nigeria’s economic landscape, particularly for Northern states, by encouraging resource optimization and fiscal independence.

Olusola Akintonde