Labour Unions, Pro-Masses Groups Urged to Resist Tax Bills
The Yoruba Ronu Leadership Forum has called on President Bola Tinubu to withdraw the proposed Tax Reform Bills, emphasizing the need to prioritize the interests of Nigerians over the reforms.
The South-West socio-economic group urged President Tinubu to consider the withdrawal as a decision for the general good, rather than a defeat of his administration’s goals. Meanwhile, former Senate Leader, Mohammed Ali Ndume, praised state governors for supporting the tax reform bills, a move he described as commendable.
However, the Campaign for Democratic and Workers’ Rights (CDWR) has strongly criticized the bills, calling them harmful to the masses. The Arewa Youth Consultative Forum (AYCF), on the other hand, expressed support for the reforms, arguing they are necessary for Nigeria’s long-term development despite short-term challenges.
Yoruba Ronu’s Concerns
Akin Malaolu, President of Yoruba Ronu, expressed alarm over the adjustments to the tax reform bills, which some governors have endorsed. He urged the National Economic Council (NEC) to reassess the reforms, warning of their potential future consequences.
“In our nation’s pursuit of peace and harmony, our forum firmly believes that the tax reform bills should be withdrawn entirely to protect Nigeria’s future,” Malaolu stated. He criticized the government’s handling of reforms, citing pervasive insecurity, constant power outages, and a lack of accountability for loans as evidence of poor governance.
AYCF’s Support for Tax Reforms
In contrast, Yerima Shettima, President of AYCF, criticized Northern governors for initially opposing the tax reform bills, describing their actions as a betrayal of public trust and a demonstration of poor governance.
“The Northern governors’ initial opposition lacked substance and failed to acknowledge the importance of taxation in funding essential services like healthcare, education, and infrastructure,” Shettima said. He accused the governors of using divisive rhetoric to fuel public unrest and questioned their sudden shift to supporting the reforms without achieving any significant amendments.
Nigeria Governors’ Forum’s Position
Following a meeting with the Presidential Tax Reform Committee, the Nigeria Governors’ Forum (NGF) endorsed the proposed legislation. The NGF also agreed to a revised Value Added Tax (VAT) sharing formula: 50% based on equality, 30% on derivation, and 20% on population.
While the endorsement has drawn mixed reactions, Senator Ndume (Borno South) criticized the derivation principle, arguing that 10% should suffice. He also questioned the four percent administrative charge allocated to the Federal Inland Revenue Service (FIRS).
CDWR’s Criticism of Tax Reforms
The CDWR has condemned the reforms as regressive, asserting that they shift the tax burden to low-income earners while providing incentives to large corporations. The reforms, encapsulated in four bills, aim to replace 11 existing tax laws, including the Companies Income Tax Act, Value Added Tax Act, and Petroleum Profits Tax Act.
One controversial aspect of the reform is the proposed VAT increase:
10% in 2025
12.5% from 2026 to 2029
15% from 2030
According to CDWR, this will worsen the cost of living, deepen poverty, and exacerbate unemployment. The group also criticized plans to phase out funding for the Tertiary Education Trust Fund (TETFund) by 2030, redirecting resources to the Student Education Loan Fund. It warned that this could lead to higher education costs, disproportionately affecting students from poor backgrounds.
Call to Action
CDWR urged labour unions and pro-masses organizations to mobilize workers and communities against the reforms. The group called for a mass movement to demand fair taxation, increased funding for education, and an end to neoliberal policies that prioritize corporate interests over public welfare.
In a statement signed by its National Chairman, Rufus Olusesan, and National Publicity Secretary, Chinedu Bosah, CDWR reiterated the need for policies that address the challenges faced by ordinary Nigerians rather than exacerbating them.
