The Presidency has called on Bauchi State Governor Bala Mohammed to retract what it described as an “inflammatory” statement regarding the Tax Reform Bill.
In a statement released on Monday, the Presidency expressed disapproval of Mohammed’s remark, “We’ll show Tinubu our true colour,” stating that it does not reflect the collective stance of the North or the constructive dialogue required between states and the Federal Government.
The Special Adviser to the President on Media and Public Communication, Sunday Dare, addressed the issue in a post on his X handle titled, “RE: We’ll show Tinubu our True Colour.”
Dare’s response was prompted by Governor Mohammed’s statement on December 25, 2024, during a Christmas visit by the Christian community to the Government House in Bauchi.
Governor Mohammed had criticized President Bola Tinubu’s tax reform policies, describing them as “anti-northern” and favoring only a segment of the country. He further cautioned that if such policies persist, the northern region would “show its true colours” in opposition.
The governor also warned that these reforms could lead to economic stagnation and jeopardize national unity, urging the Federal Government to adopt more inclusive measures.
However, the Presidency said, “I urge him to retract these confrontational remarks and redirect his focus toward productive dialogue with the FG regarding any concerns about the Tax Reform Act.”
“This unfortunate statement does not represent the collective voice of Northern Nigeria. The North, like other regions, seeks collaborative governance and constructive engagement with the Federal Government to address our nation’s challenges.
“Rather than issuing threats, his energy might be better directed toward implementing effective poverty alleviation programmes and ensuring transparent utilisation of these federal resources [N144bn received from FG]. The Tax Reform Act and increased federal allocations significantly benefit the States.”
It said the recent inflammatory rhetoric of Mohammed regarding the Tax Reform Act and direct threats toward the Federal Government is unbecoming of his office as a state governor.
“His statement ‘We will show President Tinubu our true colour’ is particularly concerning and does not reflect the constructive dialogue needed between the state and FG.
“It bears noting that Bauchi State has received N144bn (State and LGA) in federal allocations under the current administration – a significant increase from previous disbursements.
“Yet his state continues to grapple with serious developmental challenges and high poverty rates. As a state governor, he is called to exemplify statesmanship and work toward national cohesion,” Dare opined.
The Presidency highlighted that the N144bn federal allocation to Bauchi State marks one of the most significant increases in federal disbursements, providing the state with substantial fiscal resources.
This includes a recent N2bn special intervention fund allocated to each state to enhance food security. Additionally, removing fuel subsidy compensation payments has significantly boosted state revenues, along with special considerations for derivation funds aimed at protecting the interests of northern states, it argued.
Regarding tax reforms, Dare emphasised that streamlining multiple taxation systems will alleviate the burden on small businesses in Bauchi.
He added that improvements in revenue collection efficiency through digitalisation, protection for informal sector workers—who form the backbone of the state’s economy—and targeted provisions for agricultural businesses highlight the reforms’ focus on supporting Bauchi’s farming communities.
The Presidency further pointed out that these reforms open doors for development by creating frameworks to attract investments through tax incentives and building capacity within state revenue services.
These initiatives, it argued, reflect the FG’s dedication to supporting state-level development.
It said that instead of opposing these efforts, Governor Mohammed could maximise the benefits by implementing transparent fiscal management systems, developing state-specific tax incentives to attract investors, and investing in agricultural value chains.
Dare stressed that Nigeria’s path to prosperity requires unity of purpose rather than divisive rhetoric. He urged public officials to rise above regional sentiments and political grandstanding to embrace the collective vision of a stronger, more prosperous nation.
“The challenges we face—poverty to security, economic growth to social development—transcend state boundaries and political affiliations. Indeed, all political leaders must remember that their primary obligation is to improve the lives of their citizens, which is best achieved through constructive dialogue, efficient resource management, and unwavering commitment to national unity.
“The path forward lies not in confrontation but in collaboration, not in threats but in thoughtful engagement, and certainly not in divisive statements but in unified action toward our shared goals of development and progress.
“This is the true leadership Nigeria needs – one that builds bridges, not barriers, and prioritises the collective good over individual or regional interests. Finally, this Hausa might soothe the political nerves of the Governor—“Gyara kayanka baya zama sauke mu raba”.
In October 2024, President Bola Tinubu submitted a set of tax reform bills to the National Assembly aimed at overhauling Nigeria’s tax system.
The four bills—the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill—seek to unify existing tax laws, streamline tax administration, and boost revenue collection.
Key proposals include raising the Value Added Tax (VAT) rate from 7.5% to 10% by 2025, with additional increments anticipated, and introducing a 5% excise duty on telecommunications services.
The primary goals of the reforms are to simplify the tax framework, improve compliance, and generate funds to support critical infrastructure development and social services.
By consolidating multiple tax laws into a single framework, the government aims to reduce complexities for taxpayers and foster a more business-friendly environment. The reforms also propose tax exemptions for small businesses earning below ₦50 million annually and a gradual reduction in corporate income tax rates for larger companies to encourage economic growth and attract investment.
However, the proposed measures have sparked widespread debate, particularly among northern political leaders and lawmakers.
Critics argue that adjusting the VAT distribution formula to allocate a greater share to states generating higher VAT revenue could disadvantage less economically developed northern states, deepening regional disparities.
Concerns have also been raised about the potential financial strain on consumers and businesses due to the proposed VAT increase and new excise duties.
In response, some northern governors and traditional leaders have called for the withdrawal or revision of the bills, advocating for more extensive consultations to ensure the reforms are fair and considerate of all regions’ interests.
The Presidency, however, has maintained that consultations will continue as the bills remain under review in the National Assembly.