Governor Dauda Lawal of Zamfara State has raised concerns over the potential impact of proposed tax reform bills currently before the National Assembly, warning that financially weaker states may struggle to survive if the bills are enacted.
Speaking on Channels Television’s Politics Today, Governor Lawal stressed the need for a thorough evaluation of the reforms to avoid long-term negative consequences.
“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,” he said.
The governor acknowledged the complexity of the tax reforms, noting both positive and negative aspects. “The tax issue has a lot of components – there is the good aspect and there is the bad aspect. So, we are studying the situation to also advise our people on the way forward. It’s an ongoing process, and we will continue with the engagement,” he added.
The proposed tax bills, introduced by the Tinubu administration, have sparked widespread controversy and strong opposition, including from the 36 state governors under the National Economic Council (NEC). The 19 governors from northern Nigeria have also rejected sections of the bills.
Governor Lawal further highlighted the financial challenges states may face, particularly in meeting obligations such as the new N70,000 minimum wage if the reforms are implemented.
“Reform in a system is inevitable, and we should always expect reforms. 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,” he stated.
He expressed concern over the derivation component of the bills, which could reduce inflows to some states.
“If we are to go by it, it is going to affect some of the states in terms of what kind of inflows they have, and invariably it may make it difficult for some states to be able to pay their salaries,” Governor Lawal said.
