Governor Dauda Lawal of Zamfara State has warned that some financially weaker states may struggle to survive if the tax reform bills currently before the National Assembly are passed and signed into law by President Bola Tinubu.
“Some states may not be able to survive, so this is something that must be carefully studied to ensure we do not harm ourselves in the long run,” the governor stated on Channels Television’s Politics Today programme on Tuesday.
“The tax issue has many components – there are positive aspects and negative ones. We are analysing the situation so that we can advise our people on the best course of action. It’s an ongoing process, and we will continue to engage on the matter,” he said.
The new tax bills introduced by the Tinubu administration have been met with widespread controversy, fierce criticism, and opposition, including from the 36 state governors under the aegis of the National Economic Council (NEC). The 19 northern governors have also strongly opposed certain provisions within the bills.
Governor Lawal, representing one of the northern states, noted that many states would find it challenging to pay the N70,000 minimum wage if the tax reforms are enacted.
“Reform in any system is inevitable, and we should always anticipate changes. However, in implementing reforms, we must be cautious and avoid rushing into decisions that could have long-term negative consequences,” he said.
“I believe we should take the time to carefully assess the situation, fully understand its implications, and adopt a unified position.
“There is a component of the reforms that addresses derivation, which, if implemented as proposed, could significantly impact some states’ revenue streams. This would make it difficult for them to meet obligations such as paying salaries,” the governor explained.