Former Senate Chief Whip, Senator Ali Ndume, has urged the federal government to withdraw the proposed tax reform bills currently before the National Assembly, warning that their implementation could worsen Nigeria’s economic challenges.

In a statement issued in Abuja, Ndume described the timing of the fiscal bills as inappropriate and called for broader consultations involving state and local governments, as well as private sector stakeholders.

“I’m still insisting that the tax reforms bills be withdrawn for more consultations and buy-in of critical stakeholders like state, local government, and private sectors,” Ndume said.

The senator recommended that the Federal Inland Revenue Service (FIRS) prioritize expanding the tax net and improving accountability in revenue collection. He also suggested that commercial banks, which report substantial profits annually, should contribute higher taxes.

“The FIRS should concentrate on expanding the tax net and collecting more. Also, accountability and transparency should be increased,” he added, emphasizing that governance reforms should take precedence over tax reforms.

The proposed tax reform bills, part of President Bola Tinubu’s fiscal agenda, include establishing a Joint Revenue Board, Tax Appeal Tribunal, and Office of the Tax Ombudsman.

Addressing concerns that the reforms disproportionately target the Northern region, Ndume, representing Borno South Senatorial District, dismissed such claims as unfounded. “The North was, is, and will never be a parasite or dependent on any region or even the country. We are assets, not liabilities to Nigeria,” he asserted.

Ndume also criticized inefficiencies in government spending, highlighting that recurrent expenditure and debt servicing consume a significant portion of the national budget.

“First in Nigeria, what we need to do is reform the government. Our personnel and overhead expenditure for 2024 is about 50 to 60 percent of the budget itself. We should reform the government holistically,” he said.

He further noted the lack of consensus among Nigerians regarding the proposed tax reforms, raising concerns about derivation and Value Added Tax (VAT) allocations.

Ndume concluded by emphasizing the need for prudent governance, suggesting that focusing on governance reforms would better harness the nation’s resources for the benefit of its citizens, rather than hastily implementing new tax policies.