The North: An Asset, Not a Liability – Ndume
Borno South Senator Ali Ndume has asserted that the North remains a critical asset to Nigeria, rejecting narratives that portray the region as a liability. His comments come amid his opposition to the controversial tax reform bills proposed by the administration of President Bola Tinubu.
In a statement released Monday, Ndume criticised the tax reforms, describing their timing and scope as poorly conceived and disproportionately harmful to low- and middle-income Nigerians. He argued that the current economic policies of the administration are already exacerbating the struggles of ordinary citizens.
The North’s Role in Nigeria’s Development
Refuting the notion that the North is a burden, Ndume insisted, “The North was, is, and will never be a parasite or dependent on any region or the country as a whole. It is an invaluable asset.”
He dismissed claims that the tax reforms are targeted specifically at Northern interests, calling such perspectives “naive.” Instead, Ndume highlighted that the proposed reforms threaten all low- and middle-income earners across Nigeria, irrespective of region.
Calls for Broader Stakeholder Engagement
The senator urged the withdrawal of the tax reform bills, advocating for extensive consultations and more inclusive stakeholder participation. He emphasised the need for the Federal Inland Revenue Service (FIRS) to focus on expanding the tax base rather than imposing additional burdens on already-taxed segments of the population.
“The FIRS should concentrate on broadening the tax net and improving accountability and transparency,” Ndume said.
The Need for Governance Reforms
Ndume also called on the Central Bank of Nigeria (CBN) to scrutinise commercial banks, arguing that their substantial annual profits justify increased tax contributions. However, he pointed out that the real issue lies in governance inefficiencies, not just tax policy.
“Our current personnel and overhead expenditure consume an alarmingly high portion of the national budget,” he noted, highlighting that nearly 50 to 60 percent of the 2024 budget was allocated to recurrent expenditure.
He lamented the government’s inability to efficiently implement the budget, revealing that by November 2024, recurrent expenditure had already been exhausted, while only 20 percent of the overall budget had been executed.
A Debt-Driven Budget
Ndume criticised the government’s reliance on borrowing to finance expenditures, stating that over ₦15 to ₦20 trillion is consumed by personnel costs, debt servicing, and recurrent expenditure. He warned that such practices hinder the country’s ability to invest in infrastructure and other developmental needs.
A Plea for Accountability
In his critique, Ndume stressed the importance of accountability and transparency in public financial management. He argued that governance reforms should take precedence over tax reforms, stating that addressing inefficiencies in governance would provide more sustainable economic solutions.
“Reforming governance is the first step toward fixing our economic challenges,” he asserted.
Ndume’s critical perspective on the tax reform bills underscores the urgent need for Nigeria’s policymakers to reconsider their approach. Rather than imposing additional financial burdens on struggling citizens, the government must focus on governance reforms, transparency, and expanding the tax base to foster economic stability and growth.
The senator’s stance presents a compelling case for prioritizing fiscal responsibility and equitable policy-making over regressive tax measures that could deepen Nigeria’s economic challenges.
Reference
The North: An Asset, Not a Liability – Ndume