Governor Dauda Lawal of Zamfara State has said that some less financially buoyant states may not survive if the tax reform bills before the National Assembly are passed and signed into law by President Bola Tinubu.
Lawal made this statement during Channels Television’s Politics Today programme on Tuesday.
This comes amid stiff opposition from northern Nigerian governors, the National Economic Council, and other groups from the region against the passage of the four tax bills.
Lawal, one of the northern governors, pointed out that it would be difficult for many states to pay the N70,000 minimum wage if the tax reforms are implemented.
“Some states may not be able to survive, so it is something that must be carefully studied to ensure we don’t hurt ourselves in the long run.
“Well, 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 advise our people on the way forward. It’s an ongoing process, and we will continue with the engagement,” he said.
“There is a component of it that talks about derivation, and definitely, 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. Invariably, it may make it difficult for some states to be able to pay their salaries,” he added.
The new tax bills introduced by the Tinubu administration have sparked widespread controversy, with scathing criticisms and stiff opposition from many, including the National Economic Council, NEC.
Tax reforms will make it difficult for states to pay minimum wage — Zamfara Gov