The Presidency has called on Bauchi State Governor, Bala Mohammed, to retract his “inflammatory” remarks criticizing President Bola Tinubu’s Tax Reform Bill. The controversy stems from Mohammed’s statement during a Christmas event on December 25, 2024, where he accused the reforms of being “anti-northern” and warned of a potential response from the northern region, stating, “We’ll show Tinubu our true colour.”

In response, Tinubu’s Special Adviser on Media and Public Communication, Sunday Dare, described the governor’s remarks as unconstructive and divisive. Dare urged Mohammed to focus on dialogue with the Federal Government (FG) rather than issuing threats, emphasizing that the statement does not represent the collective voice of Northern Nigeria, which seeks collaboration to address the country’s challenges.

The Presidency highlighted the significant federal allocations Bauchi State has received, including ₦144 billion under Tinubu’s administration, and questioned the governor’s stewardship in addressing developmental challenges and poverty in his state. It also noted that the reforms, which streamline taxation, boost state revenues, and attract investments, aim to benefit states like Bauchi. Measures such as digitalizing revenue collection, exempting small businesses from taxes, and protecting informal workers were cited as steps to ease the burden on northern states and promote economic growth.

The Tax Reform Bill, introduced in October 2024, seeks to consolidate existing tax laws, simplify administration, and enhance revenue generation. Key provisions include increasing Value Added Tax (VAT) from 7.5% to 10% by 2025, imposing a 5% excise duty on telecommunications, and granting tax exemptions to small businesses. These changes aim to create a business-friendly environment, fund critical infrastructure, and stimulate economic growth.

However, the reforms have sparked controversy, particularly in northern Nigeria, where leaders fear the VAT distribution formula could widen regional inequalities. Critics argue that states with lower economic activity may receive less revenue, exacerbating development gaps. Others express concerns over increased tax burdens on consumers and businesses.

Despite the backlash, the Presidency defended the reforms, emphasizing their long-term benefits for state-level development and economic stability. It called on public officials to prioritize national unity over regional sentiments, urging them to engage in constructive dialogue and efficient resource management to address Nigeria’s shared challenges, such as poverty and security.

Sunday Dare stressed that collaboration, not confrontation, is key to achieving Nigeria’s developmental goals. He encouraged leaders like Mohammed to embrace transparency in fiscal management, develop state-specific incentives to attract investments, and maximize federal allocations for economic growth. The Presidency reaffirmed its commitment to consulting stakeholders as the bill undergoes legislative review, aiming for a balanced approach that accommodates all regions’ interests.