Northern Concerns Over VAT: Zulum on Tinubu’s Tax Strategy

Northern Concerns Over VAT: Zulum on Tinubu’s Tax Strategy

Governor Babagana Zulum of Borno State has raised strong concerns over President Bola Tinubu’s proposed tax reform bills, arguing they could disproportionately harm northern Nigeria. Zulum and other northern leaders are particularly opposed to changes in the Value Added Tax (VAT) distribution model. The reforms suggest shifting VAT allocation from corporate headquarters to the location of consumption. Critics argue this would disadvantage less industrialized regions like the North, exacerbating regional economic disparities.

The Northern Governors’ Forum has called for equity, stating that reforms should not marginalize any region. While Tinubu’s administration views the proposal as a pathway to fairer resource allocation, the backlash has prompted recommendations for further consultations【30†source】【30†source】

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