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Tax Reform Bills Could Threaten State Survival


Zamfara State Governor, Dauda Lawal, has expressed concerns over the potential impact of the proposed tax reform bills before the National Assembly, warning that financially weaker states may struggle to survive if the reforms are enacted.

Governor Lawyer who spoke on Channels Television’s Politics Today on Tuesday said, “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 controversial tax reform bills, introduced by President Bola Tinubu’s administration, have faced widespread opposition, including from the 36 state governors under the National Economic Council (NEC).

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Northern governors, in particular, have criticized sections of the bills, arguing that they could worsen economic disparities among states.

Lawal noted that the reforms could hinder states’ ability to meet financial obligations, including the recently proposed ₦70,000 minimum wage.

He emphasized the importance of a measured approach, stating, “Reform in a system is inevitable.

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.”

The governor noted concerns about derivation components within the bills, which could significantly affect revenue inflows for some states, making it challenging to pay salaries and sustain governance.

Zamfara, like many other states, is studying the proposed reforms closely to determine their potential impact.

Lawal reaffirmed the need for a unified stance among states, ensuring reforms are beneficial without destabilizing weaker economies.

The tax reform bills are part of the Tinubu administration’s broader economic strategy but remain a contentious topic amid calls for deeper consultation and adjustments to safeguard state economies.



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