Borno State Governor, Babagana Zulum, has raised concerns over the potential impact of the proposed tax reform bills being debated in the National Assembly. He cautioned that the reforms, if passed in their current form, could severely hamper the ability of state governments to pay salaries and fulfill other financial obligations.
The governor explained that the proposed changes would significantly reduce federal revenue allocations to states, which are a primary source of funding for most state governments. “If the tax reform bills scale through, we may no longer have sufficient funds to pay salaries, let alone implement critical infrastructure and social programs,” Zulum stated.
He emphasized the need for balance, noting that while tax system reforms are necessary, they must not disproportionately favor the federal government at the expense of the states. Zulum urged the National Assembly to consult with state governments to ensure a fair distribution of revenue.
Borno State, like many others, relies heavily on federal allocations due to limited internally generated revenue (IGR), which is further strained by economic challenges and insecurity in the region. The governor warned that the proposed reforms could lead to widespread financial instability, affecting not only salaries but also key developmental projects and public services.
The tax reform bills are part of the federal government’s broader strategy to expand the tax net and reduce reliance on oil revenue. However, critics, including civil society groups and economic analysts, have called for a review of the bills to address potential inequalities and prevent disruptions to governance at the state level.
Governor Zulum called for a collaborative approach to ensure that the reforms support both federal and state governments without compromising financial stability or public sector performance.
